STRANGE BANKING BUSINESS.

Oamaru Mail, Volume I, Issue 8, 1 May 1876, Page 4

STRANGE BANKING BUSINESS.

Seme enriotts dHcleattres (says the " Manchester Gaarniian"') were made at a meeting of the creditors of the "Leeds Mercantile Bank,"' mi eatablishmcnt whose customers belonged chiefly to the small trader dm The liabilities were stated at £49,748, and the assets at £12,270. The book debts amounting to £54,900, were only estimated to produce £9,500, but the accountant (Mr. Booth) "could hardly say -what they would realise, as a Mr. Longbottom, of London, was down for £3G,000. n The same Mr. Longbottom, who has been heard of before in connection with the Canadian Oil Well case, was stated to have been the means of £30,000 being withdrawn front the insolvent concern. The "Bank" was started eleven vtaam ago with a capital of only £7BO, and Mr.ftouth said that for years a great deal of its assets had been made tip of dishonoured bills. Its pretended reserve of £IO,OOO " only existed on paper." A Mr. Woodhead, who, in 1872, without possessing any capital, become a partner in the " Bank," then bad to the extent of £27,000, told the creditors that Longbottoin was a man of means, and had promised to pay every shilling he owed. The Bank, added Mr. Wooodhead, would have been restored to a state of solvency if Longbottom's speculations had turned ont successful. Mr. Woodhead's admission that lie knew the Bank was insolvent when he west into the partnership drew from a . creditor a taunt about his continuing to "take the money from poor people." It was resolved to liquidate the estate by arrangement.