The Express.
London, England, 1859-08-23 00:00:00

(Stamped Id. AdditionaL) [TWOPENCE.

ALLZOID FLAMM OF A SCOTCH LION COM-
PAIVE-IXTXAOEDINASI CASH

The summons Lamed spinet the Carron Iran Core-
play already alluded to in our columns) promises mother
le case in commenial jorieprudence. It appears
that the company in question was incorporated is 1773, with
a capital of 150,0001. in 600 shares of 2501. eseit, for the
manafacture of iron. and its principal works have been at
Carron, near Falkirk, with an agency in London. The
business has been conducted by • general manager, who,
according to the terms of copartner", was subject to the con-
trol of general meetings. For nearly forty years—that is,
from 1786 to 1825—this post was held by • Mr. Joseph
&Welton. Upon his death this person was seconded by •
nephew, Mr. Joseph Dawson, while another nephew, Mr,
William Dawson became assistant mower. A third
nephew sad • cousin were the agents respectively at Glasgow
and Liverpool, and a brother, Mr. Henry Btainton, was
in London. In 1850 Mr. Joseph Demme died, and Mr. Wil-
liam Dawson then assumed sole control. This he still retains,
and hence for seventy-thres years the family appear to have
had the establisbment in their hands. From these circum-
stances arise the singular story which, through • proem
just instituted in the Scotch courts, is presented to the pub-
lic. The company, under their deed, are allowed to buy
the shares of any retiring partner, and it seems that the
managers have steadily availed themselves et this faculty.
From 1830 all 1851 the Mama. Dawns, it is said, have not
permitted any share to be purchased by soy stranger
or partner other than • member of the families of
Btainton or Dawson, and the charge now is that,
by mama of false balance*, abstracts, and secoanta, end
• general system of misrepresentation and conceal-
ment, the shareholders were kept in ignorance of the
tens value of the stock, sad were thus induced to sell
their shams at mice* greatly below their actual worth."
Ames °deers, is met, Wood blacken wee led to
sell 30 shares at 2001. each, and he secordingly bring, an
action to have the sale and transfer set maids, and to ha re-
instated In pomeasion on the ground that it was by Wes and
fraudulent pretension' that they were obtained from him.
In his summons" or bill of complaint, which, it must of
mane be borne in mind is as yet entirely er parted he
alleges as follows:—Although the provisions of the deed
required the appointment of committees for the examination
of accounts, no each committee had been appointed since
1813—half-yearly balance-sheets were made out, bat in
these the annual profits end the assets were systematically
pat dowt at far less than their proper amount. Thus in
the Is. years from 1829 to 1838 diem were, it le averred,
under-eistemeds to the extent of 176,1191., the profits being
represented me 118,9261. indeed of 224.6431. Mr, Joseph
Dewitt used to send to Mr. Henry Btainton, the agent
in London and brother to Mr. Dawson's prodecemor be
the mesegennat, "trial belams-sheets" which were
eared, mad these were then altered and adjusted to
meet the object In view. In 1826 Mr. Joseph Dawson, it is
alleged, writ to his " dear uncle" that the bollisOo then
=7ashowed profits andiesties=vB6l. " This," he
we propose to reduce by 2,6001. from
Iran leek goods plg boa, and miming the es of the pig
stmry, to that Went ; also by itheduishiag the in-
ventory ot flask goods '
el,OOOl. and
timberg 1,0001.
tow general charges to the edlt of , sad deducting
that meant from the timber inventory." The total wee
ems teen& down to 10,0861. BM the writer wont on to
=Labasi this =mese " dill rather too much," that it
y certain dealings with the " insurance meeoeite"
be eateetewl to skeeter diminution of 1,6001. In reply, Mr.
Henry &sham, the uncle, is quoted to have observed that
he would rather not touch the insurance account, as some
of the partners had their eyes upon theenond that be weal
rdietriloiparating upon the firdenst gotop.staiThere wads a:h.
a Dawson, milled the .Beor:tsßaserieFund," :hick satoton "
miter;
In 1888 to 22,7921. and which la described to have been
chiefly aczunsulatid by debiting certain comignmente of
military stores from Carron to the Bond of Crannies is
Leedom with breakages which had never oerened. Them
breakage, wont sometimes to the extent of 25 ppaarr oast., end
Mr. Henry Stainton delivered to the Board of end
received payment for the whole quantity sent, bet neeittedte
Carron only the supposed premeds of the unkedkes goods.
Thus things continued apparently until 1850, when joss*
Dawson died, and William Dawson succeeded to the contra
at Carron, while Henry Btainton remained as agent
in London. Dissension then, for the first time, Make
oat between the families of Btainton and Dawns.
William Dewsos, being manager, called upon Henry
Swinton to account for the London fund. Steinke'
admitted its existence and handed one 96,0001. to the
company. He died shortly afterwards, and the company

needshalm on his essonari for shortoOmings, whichrwai
ised last year by a payment of the enormous earn of
727,W. For throb-and-twenty years, *wording to the
narrative of Colonel Maclean, some of them have been vainly
endeavoutiag to get Information. A Mr. Roams, in par-
ticular, need active efforts, but was always defeated. The
parties were aware of his aim, and in 1816 /Ralston wrote to
William Dawson, while ending him a °retain amaze, " It
may serve to swim Romania, and can do no harm in any
way." At a later period William Dawson wrote to &Motto
that to comply with ell Remises' &monde would " cause
endless trouble and no little mischief;" that he had better
reduce his balance at the Bank of England lest it should
attract the notioe of their " anemia.;" and that a certain

sum had been kept back in mder that their " greedy
partners" (the shareholders) might not au pose they
had so much mak in hind. Sir James Gibson-Craig,
then Isar agent of the company, strenuously advised that
Morasses and the others should be furnished with the infor-
mation desired, and in 1846 he again warned the manager at
Carron of the illegality of his proceedings, protesting, at the
mine time, against one of the shareholders—a Mies Adis—
being allowed to sell her abort to the company in total igno-
rance of ha real value. "The account made up," mid Sir
James, in a private letter to Dawson in 1846, "does not die-
cloee the state of the company's affairs, but conceals it. The
debts duo are overstated by 130,0004 The assets are under-
stated to a much larger amount. No one who Is not a ma-
naging partner can have the laud idea of the value of the
stock, and I therefore think it Illegal In any managing
partner to buy the stook of anyone who is not a mooning
partner. " Still, these warnings are alleged to have had no
abut, sad in the following year Colonel Maclean slim was
induced to part with Ma interest. This parchaeo threatens
from the preesetTLiroemelings to form II taut bargain for the
" company." foregoing details are simply an abridge-
ment of the summons loaned on the application of the com-
plainant, but it is said that a Mr. Thomas Tod. of Dry-
grange, is likewise preferring • similar suit, and doubtlesa all
the other "greedy partners" or ex-partners will imitate the
exempla.

HARMONIUM-NEW MODEL.--
mix sag O. at. Iliidesse.