HALF A MILLION LOST.

New Zealand Herald, Volume LXII, Issue 19031, 30 May 1925, Page 2 (Supplement)

HALF A MILLION LOST.

"ON THE VERGE OF DEATH." MEN HELPLESS IN" DOCK. NOT A FARTHING LEFT. Transactions which involved a loss of £500,000 by a' London syndicate, and which, were followed by the physical and mental breakdown of the principal—a Lloyds underwriter--were mentioned at the Old Bailey lately. Stanley Bruce Knowles Harrison, aged 44, a former member of Lloyds, was bound over after pleading guilty to the fraudulent conversion of a cheque for £613. Mr. Justice Roche said that but for the man's physical and mental condition he would have sentenced him to six or nine months' imprisonment in the second division. Harrison collapsed into a-chair on entering the dock, and was unable to articulate !on being called upon to plead. Through-

out the case he was trembling violently, and when it was over he had to be helped out of the dock. Mr. Travers Humphreys, prosecuting on behalf of the Committee of Lloyds, said it was the first time the committee had put into forco the powers to prosecute granted them by a private .Act of Parliament. Harrison, with other persons, started a series of speculations' and became involved in an enormous amount. When die crash came in October 1923 the persons forming a syndicate were found to be liable for over half a million pounds on policies issued in their names guaranteeing bills of exchange. Of that halfmillion over £400,000 represented accommodation bills. Harrison (said counsel) kept a double set of books. One set he showed to the chartered accountant; the other set he did not disclose. .Sir Edward Marshall Hall, for the defence, said Harrison had been on the verge of death. At one time he, had had a " colossal business/' Then there sprang up a form of reinsurance of an extraordinary character, which, though perfectly legitimate, opened the. door to fraud. This was in connection with motor-cars sold under hire-purchase agreements. Now ho had not a farthing, and was absolutely ruined.