MAN OF MANY COMPANIES.

Poverty Bay Herald, Volume XXX, Issue 9865, 6 October 1903, Page 4

MAN OF MANY COMPANIES.

BOGUS INSURANCE PROMOTERS SENT TO PRISON. LONDON, Sept. 1. The trial has concluded at Edinburgh, before Lord George Kinnear and a jury, of John. Grant and Benjamin Arthur Blackhurst, of 51, Rowakian-gardens, Patrick, against whom frauds were alleged m connection with the Star Fixe and Burglary Insurance Company, Glasgow. The jury convicted them, and they were sentenced to terms of imprisonment. The concern started m August 1900, with a capital of £8, and the prisoners, by their representations, induced 2000 persons to take out policies of insurance between December 4, 1900, and December 18, 1901. In- their prospectus it was stated that there was a guarantee fund of £250,000, of which "£7t>,ooo had been subscribed. The premiums received amounted to £2,310., and the total risk incurred was £889,631. When the company stopped on; December 6, 1901, there was a balance at the bank of £10 5s 3d. An interesting 1 feature of yesterday's proceedings was the evidence of the prisoner Grant, who was called as a witness for the defence- He alleged that the first person td suggest the formation of the Star Company was Mr A. J. W. Greig, who was general manager of the Empire Mutual' wheni witness was its secretary m Glagow. Mr Greig had a varied experience of insurance business, and the witness had every confidence and trust m him. TEN CONCERNS. Ira cross-examination by the SolicitorGeneral, Grant said that after the company stopped he became connected with the New York Life Assurance Company as an inspector of the Glasgow branch. He last saw Mr Greig iv Jauuary last. How many companies was he connected with? — I understand he has floated ten companies. What has become of the ten?— l believe they are all m liquidation. Was this the sequence of your connection with the companies— the Empire, the Star, the New Yoik, tha Pelican, and here?— (Laughter. — Yes. I had nothing to do with the promotion of those other companies. You were not worth £750, but you signed a guarantee for £75,000. Were you worth 750 peace? — The prisoner: Yes. :

About the £250,000 guarantee, you say it was creo/ted at a meeting. Do you mean you went into the meeting and proposed this long resolution, and that you came out with; £250,000 of a- guarantee? If you had made it two and a half millions it would have been the same thing. Why did you stop at £250,---000?

"I don't know," replied the prisoner. He further stated that he tried to obtain some* of the guarantee of £75,000 from his relatives, but they one and all refused. t) "And you went on gaily as before, commented the Solicitor-General.

The jury convicted both prisoners on eight of the nine counts, and added that Blackhurst acted m concert with Grant, having knowledge of the frauds. Grant was sentenced to twelve months and Blackhurst to nine months 'imprisonment.