Fraudulent Trustees.

Manawatu Standard, Volume IX, Issue 142, 21 May 1885, Page 3

Fraudulent Trustees.

BBOGDICN ItROS. DEFRAUD OIiPUANS UF £ 115,000.

ONE OF I'HK TUOSTBKH AN M.P

11l the Cuuit (England) a petition ro eoni|>romi.s« the notion for the ;ulininißUaii<m of tho estate of the Into Jainus (r.-iiKtMog ami sluv furl her proct'e>lini{s was drought before Mr Justice Kay Ft appears thai Mr Altixau.lHr lirogiltm (M.P. f«»r Wediifsliiu-y) and Mr 'Henry Brogden were appointed trustees m the will of the late Mr James Graratang, with power to invest m "slock or Hhaie* of incorporated companies." Under this power the trustees lent tlm pr ncipal part of the ♦•suto, amounting to upwards of £800,000, to the linn of John Bmgcleii aud Son, v winch firm the two trustee* weie partners. The firm taile-l, with liabilities amniiiitin-/ to .£509,889, and with asset* of .£3BOO oui'v. ' Mr Justice Kay said it was » groga* breach of trust, ay £70.000 had liceti lost, the trust only saving about 11203. He could not help saying that it was a gross ,caM« of robbery of truxt funds, and tbi-se gentlemen dexerwrl both of them to suffer a term of imprisonment. Mr Hastings, who appeared for the " uifaut" cliildniii who had been defrauds, s :4 i<J he thought a compromise; wus the best thing tltai couM Ih« ilone. Mr Jnsi.ico Kay : " No one, thi.-n. wi>lios Lo punish thuse delinquent trustees ?" Mr Hastings replied I hat -here wmh no desire to do .so, as it would be inertly a waste of iKlditional monoy. The jiul«e tliHu gave power for the removal of ' Messrs Brogdeu fts the trustees and for new oues to be appointed. Under a settlement. date<l November Brh, IBGB, it appears that the firm of Broaden and son ow«d the estate oftlielato James Garatang, a further sum ol ,£85,614 principal and interest for advanci s made to the linn, and proceedings m this matter were also stayed. The Brogdeu and Son referred to had several contracts for New Zetland railways, among others the New Plynionlh-Waitara railway, aud Mr Alexander Brogdeu, who< is mill M.P. for Wednesbury, was iv New Zealand some years since.