The Express.
London, England, 1853-12-23 00:00:00

LAKE 1;.11111C -11 s
OMPAT GOLD MINING
NY.

Yte:erdar a meeting of shareholders in thie com-
erpaas. held at the London Tavern, " for the purpose of
ions'ider.ez the propriety of taking legal er other proceed-
: „ming the director* or coecoctors of the concern."
lit D. 6 I IVALLA, "thine Seine was attached to the advet-
ussient calling the meeting, was called to the chair.
The Cit•ltte AN isiel that since the meeting had been ad-
vertised, he bed received a mass of letters relative to the
Len Bathurst Company, a few of which he thought it
would be well to read to the meeting. Mr. Charles Manley,
who held 400 share', wrote to him from Brighton to say
thole would hear his share of the expenee is Winging
this nest disreputable company to task. Another gentle-
mot the owner of a hundred shares, wrote to him from
Beading In the same effect. Mr. Sodden wrote to him from
Lenin to the same effect. He had received a number Of
knees from other shareholders which he would not trouble
the meeting by reading. One of then gentlemen wrote
to the directors for information on the subject of the corn'
posy, but the answer weigh he received from Mr. Boyle was
that information respecting the affairs of the onspoey must
be enticed to the registered shareholders. Now he (the
chairman) believed that there were not twenty registered
shareholders amongst the seventeen gold mining companies,
and he would recommend the shareholders in this company
not to register their sham lest it might subject them to
some liability. He believed that the case of " Harvey r.
hoe," which was reported at length in the Daily Nests
and other newspapers of Saturday, was steno picture of the
mode in which then gold companies were got up,
though this company was an example of the worst kind.
The chairman then read the report of the trial, and the
remark* of Chief Justice Jareae in reference to the case.
The language of the Chief Justice was strong language, but
not stronger than the occasion required. He (the chairman)
was resolved to speak out, and to call things by their right
names. There were four directors of a company who
bought or professed to have bought 500 acres of land in
Australia, &append to be auriferous, for which they gave
40,000 shares. Two of these afterwards sold it to the other
two, and those two received .5,000 shares each on the trans-
action. Now it wee his belief that the land was not worth
Penne. Nothing at least was known of it, and no one had
gene out to Australia to snake ray inquiry about it up
to the present time. It was one of the greatest frauds ever
palmed on the public ; he did not think there:could he au-
toad opinion on that subject. Mr. Begshaw and Capt. Denny,
two of the directors, had been allotted 500 shares each, but
be must do them the justice to say that they had not
accepted of them. He believed those gentlemen were in-
volved in the transaction only thus far—that they had lent
their names without sufficient inquiry, and it was on the
faith of such names that the public advanced their money.
(Hear, hear.) The other directors received 6,010 shares
each as their share. In cases like the present it was difficult
to come it the real facts, but he was determined to search
them out, and with this view he had written a letter
to the chairman end committee of the Stock Exchange,
which appeared that day in the Daily Noma, •
journal that was characterised by the fearlessness
with which it lent its columns for the protection of
the public ie matters of this kind. (Hear.) Mr. Webb,
the Secretary of the Stock Egehange Committee, wrote in
reply to say that they would afford every information in
their pow( rto facilitate all necessary inquiry. In conse-
quence of that letter he went that day to the Stock Ea-
change, and examined every paper relative to the Lake
Bathurst Company. He found that on the 16th of April,
1811, application had been made by the Lake Bathurst
Company, through their secretary, to be put on the official
bet. They stated that out of 100,000 shares, 440,711 had
been issued to the poor unfortunate public, 19,289 were
reserved for Australia. The remaining 40,000 shares
stood in this way. The company made • re-
servation of 40,000 shun for the purpose et sem-
pitting the purchase of the land, etc., as agreed spa
with the vendors, and which shares were to remain in the
beads sad sailor the control of the direeten to be applied
M time wpm only. Those 40,1100 shares remained, there-
into, M the bands of the directors to test the value of the
KO owls in Australia. They had pas into this ninetie-
th% therefore, without the land having been tested. He
lellseed the 600 acres were not worth 600 pence, at least
elleideb had so written to this country. It was their bounden
dung, therefore, to investigate this transaction from begin-
single end. (Hear, hear.) No doubt there were some
innelezat parties mixed up in the transaction; and a die.
ibenien was to be made between those that
sheen in the plunder and those who did not.
They bad it on the authority of the Stock Exchange
book, that 40,1'11, shares had been honed to the putiltc.
yet ke was creditably informed that only 7,000 shares had
line issued. It was impossible to say how many were
based. Ile stood there, not as an original shareholder, hut
ma shareholder by purchase, and it was possible that he
was • purchaser of some of these 40,000 shares which had
bees palmed on the public—no one Gould say at what price.
Then were things which required to be brought out by in-
vestigation,
and in his opinion, after giving his beet amen-
bee to the @abject, it was • case either foe the Mansion.
bens er the Old Bailey. (Hear, hear.) They should not
suffer themselves to be plundered by • fans issue of none.
The amount of assets would, he believed, be found to he
very mall. Mr. Dagebaw and Captain Deasy called
s him to say that they would be ready to
ee every ioformetion in their power by which the ends of
jmDw might be furthered. The lees to the public
Flom treneectioos of this kind was MIerROUS. And there
woe little satisfaction to be had, for when the delinquents
were (nod out they ilimmped to Boulogne or to some part
*flinty. Ile believed that this matter must come before
palisinent, for the public had • right to be protected from
weft frauds. This subject was suiting great attention,
isi it was the duty of the shareholders by malted action
inapt themselves to protect their own interests, as for as
thry could now he protected is this particular case. (Hear.)
Mr. Limn° said that after the report of the trial in the
papers, and the statement of the chairman, it would not be
Melleary for him to do more than propose • resolution to
the effete, that a committee of five shareholders be ap-
pentad to investigate the circumstances attending
the formation of this company, its financial position,
and present and feture prospect., with the view
of taking such steps as might be deemed advisable
for recovering back if possible the money paid by the share-
holders or of winding up the concern. Ile deemed it right,
however, to mention that he had that day received a letter
from Mr. Barterer. stating that he hoped he might be the
int called on by the'entotittee of investigation to eeplain
what he knew. (Hear, hear.) Captain Denny, he be.
hewed, would be ready to act on the committee. (Heat,
hear.) He had also received • letter from Mr. Boyle, dated
the 224 of December, stating that the fact of the meeting
having been brought under the notion of the hoard, they
were unanimously of opinion that it would be denrakls to
fix the guilty parties with the consequences of the treed
alleged to have been committed on the public, and in order
attaia this end, he (Mr. Boyle) would be happy to confer
with the committee that might be appointed. Now he (Mr.
Ludo) thought that as the name of Mr. Boyle was mined up
in ao very favourable way in the transaction, it would not
be right to accept of his services. (Hear, hear.)
Captain IneNNY admitted that it was not creditable to
either Mr. liagshaw or himself to be mined up in any
way in this transacti:n; but it was some excuse for being
found in the direction of this company, that whes they were
invited to become directors they found the names of Sir E.
Belcher, Mr. Benin, and Mr. Bell, already on the list. The
company was formed about Minh, 1861, and its round-
week was a letter written and signed by Mr. Langley, of
Sydney, wherein he described the land to he of an
sun-
ferois quality, and advised his friends to buy the land at
any cost, for it would De a fortune to all. It was said
to have gold in eight different places. Let them recollect
that this information came at • time when the gold
fever was at its height, and when it might well be supposed
that the information was correct. Under these curcum-
shun they did allow their names to be used as dinners,
MO* Its their regret since. (11909 r, hear.) They little
titthen that Sir E. Belcher was one of the perms
rumbaed the estate. They parted with the
40,000 shares Against his positive protest and that of Mr.
Begeltaw, bet they were outvoted at the board by the edam
directors, Mr. Iron, Mr. Bell and Mr. Bevan standing in
the relation of father and son-in-law to each ether. He
believed the shares were taken out of the box by Bell
and Bevan, without any one else being there at
the time. Two months had not elapsed when they
suspected that the whole letter said to be writ-
ten by Mr. Langley was • forgery from beginning
to end. Matthews was the party who received or
said that he reo iced it. He wished to tell the whole
truth, and confessed that he was 'named of the position in
which he stood before the public. (Hear, bear.) They
endeavoured to get back the shares from Bevan and Bell,
Sir Edward Belcher having gone abroad. Inn promised
to return the shares ; he old return 12,630, not into the
hands of the company, but into the hands of hi- father-
in-law, Bevan, pending the necessary inquiry as to who
wee entitled to thew Ile promised to get 12,000 more, but
be never did. Mr. Bell continued to sit quietly at the
board. Mr. Begsbew and Mr. Boyle consulted as to the
Map to be taken to get back the shares. There was •di
vision in the camp, and the result was, that Mr. &gnaw
retired in disgust. Mr. Bevan retired a month before. He
(Capt. Denny) remained, thinking that, as mum bed be.
some so bed, be would beet consult the interest of the share.
holders by remaining at his poet. (Hear, hear.) He be-
lieved that there was 6,0001. in band, and that not more
than 7,000 shares were issued.
The CleAterlArt—How could that be whoa be had it ea
the authority of the Stock Exchange that 40,711 were
Issued, and the Stock Exchange would not be seti.fied by
the mere issue of the share., unless they were paid on, and
the money placed in the hankers' hands ? (Hear, hear.)
The fact that th, v put the compsay on their official het,
showed that the shares were paid on. But this wee sae at
the points that assist be inquired into and expleined.
Citettate Des tee 40,000 shares were never paid ee.
There might be 8,000. Mr. Bephew and himself dil
everything they could to set matters right, but they fused
so many crooked people to deal with that they were not
able to make much progress. They scorned to receive •
eingb share eennee•ed with the company, and were anxious
tepee every information in their power.
Mr. flares said that the shareholders were much obliged
to Ms. Ueedello for the interest he took in this matter.
(Hear, hear.) When they found it stated by a director tba
maw wore but 7,000 or 8.000 shares bested, whilst, accord-
fag to toe Sock Exchange, there were 40,000 issued, it
required bat little foresight to see that there meet be fraud
somewhere. (Hear, lair) The Stock Exchange did not