HALF A MILLION LOST.

Otago Daily Times, Issue 19500, 8 June 1925, Page 11

HALF A MILLION LOST.

“ OX THE YERGE OF DEATH” MEN HELPLESS IN DOCK. NOT A EARTHING LEFT. Transactions which involved a loss of £G(K),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 Brnce Knowles Harrison, aged’ 44, a former members 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. Throughout 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 force the powers to prosecute granted them by a private Act of Parliament. Harrison, with other jrersons, started a series of speculations and became involved in an enormous amount. IVhen the crash came in October, 1923, tl>e persons forming the syndicate were found to be liable for over half a i million pounds on policies issued in their names guaranteeing bids of exchange. Of that half-million over £L)0,000 represented accommodation bills. Harrison (said counsel) kept a double set of books. One set he showed to the chartered accountant; the other ect lie did not disclose. Sir Edward Marshal! 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-nurchese agreements. Now he had' not a farthing, and was absolutely ruined.