FORTUNE LOST.

Taranaki Daily News, 4 March 1922, Page 5

FORTUNE LOST.

ECHO OF THE SLUMP. * LONDON FIRM FAILS. <' DEALS IN MILLIONS. By Telegraph.—Press Assn.—Copyright. London, March 2. How Gerard Bevan amassed a large fortune in the post-war boom and lost it in the subsequent slump was revealed at the Bankruptcy Court’s inquiry into the affairs of Ellis, and Co., the second oldest stock «•poking firm in the city, of which Bevan was the principal partner. The other partners made statements that Bevan in 1914 held 51 per cent, of the firm’s capital of £200,000, but he held a million in 1921, whereas the partners’ holdings were unaltered. Bevan controlled, the financial operations, from fme to time reporting transactions of a million and half a million in connection with new industrial issues. They disliked these large commitments,, but did not interfere until the spring of 1920, when Bevan promised to discontinue, but he resumed his old ways without consulting them. Meantime Bevan made a fortune while they were no richer, on the contrary, compared with pre-war times, thej r had lived more economically. They had no idea of trouble until January 10, when Bevan asked to see the partners, but did not attend the meeting, sending a message: “It does not matter as a lot may happen in the next 48 hours.” The Receiver announced that the gross liabilities were two millions, of which £536,000 was proved by the Equitable and other companies with which Bevan was connected. The assets were £47,500 plus, 'book debts which would realise £200,000. The partners attributed the crash to the heavy depreciation of industrial securities in 1921, the immediate cause ’being the collapse of the Equitable Company, in which they were large shareholders.

The man arrested at Naples has convinced the police that he is not Bevan. The latter is still in concealment in the neighborhood.