MYSTERY INVESTMENT

Greymouth Evening Star, 22 June 1923, Page 7

MYSTERY INVESTMENT

FATE OF EARL’S £50,000. . “Lord Shrewsbury was swindled. [. . . Could the jury conceive two sane men (the late Earl and Sir 11. . B. Bird) signing a guarantee _of £25,000 without knowing anything . about it?” ’ These observations were made by Mr. Patrick Hastings, K.C., M.P., when in the High. Court he tried to - solve the mystery of the late Earl of ' Shrewsbury’s £50,000 investment. The action has been brought by the ' London Joint City and Midland Bank, Ltd., against the late earl’s executors, 1 and Sir Henry Bushby Bird and Mr. James Gibson, claiming £25,000 alleged to be due to the bank from the Aniline Dye and Chemical Company, Ltd. Mr. Gibson had not entered an appearance, but the other defendants denied making the guarantee, and said alternatively, that their signatures, to the guarantee were induced by the fraudulent misrepresentations of Gibson. Miss Alice Robinson, formerly secretary of the Aniline Dye Company, in cross-examination by Mr. Patrick Hastings, K.C., M.P., for the late Earl’s ’’executors, said she did not know Lord Shrewsbury was under the impression he had bought shares in the company, and paid £50,000 for them. Do you know that he paid £50,000? —Yes. ■Air. F. Woodcock, chartered accountant, said he assisted the liquidator of the Aniline Dye Company. Part of the company’s property had been sold, over £5OOO having been realised. Mr Hastings (cross-examining) : Is it tlie fact that Lord Shrewsbury paid £50,000 in cash for shares in this company?—l should say no. i Did he pay £50,000 in cash? —I believe he did. “We have no evidence that he paid £50,000; I am told he did,” said witness, in answer to a further question. This concluded the plaintiff’s case, and Sir Henry Bushby Bird gave evidence. Describing the board meeting at his house, witness said he had been ill with pneumonia, and came downstairs for the first time to attend the meeting. Lord Shrewsbury came, accompanied by Airs. Brownlee. Air. Gibson was there, and witness and his wife. They conversed for some minutes, and Airs. Brownlee was elected a director of the company. Witness then said, “I suppose that is the whole business.” Lord Shrewsbury said “Yes,” and was in the act of getting up to go when Air. Gibson said, “There is just one other thing. I want you to sign this specimen signature for the bank,” and placed on the table what appeared to be a piece of blank paper, folded. Air. Gibson explained that the bank wanted their signatures, as any one of them with the secretary could sign cheques, and witness thereupon signed tlie paper. Lord Shrewsbury signed, and then Mr. Gibson signed, and afterwards put the paper into his pocket. Not a single word was said about a guarantee, and witness had no idea that he was making himself responsible under a guarantee for £25,000 ; neither had Lord Shrewsbury. At a later board meeting witness said he was late, and no minutes were read in his presence. The meeting was nearly at an end when Lord Shrewsbury invited him into another room. Lord Shrews- ■ bury said: “Do you know that wo signed our death warrant the ■ other day?’ That document we signed ■ at your house was guaranteeing an overdraft at the bank. But don’t be > alarmed. The bank hold'' title deeds i for property that is worth round about i -£60,000.” J Cross-examined with regard to his , signature to the guarantee, witness , said, was all done so quickly. - There! was no suspicion at the time. • I have signed plenty of things without reading them. I may be wrong, but as a public man I do, unfortunately.” The hearing was adjourned.