The Sun.
London, England, 1827-01-15 00:00:00

LAW INTELLIGENCE.

COURT OF KINGS BENCH, Gvir.DirALL, JAN. 13.

Till KING V. RICHARD 111-ELAND, ItICHAP.D DIXON 7,10TT, AND

PETER STAINSBY.
Mr. ST-same-opened tile pleadings. This was an indictment,
charging the defendantS With a conspiracy to defraud one William
Clark of 2,0001., by fahrteating and selling to him 238 shares,
purporting to be part of Ole shares of the Imperial Plate Glass.
Company. BY other of the counts hi the indictment, the de-
fendants were charged with the fabrication of the said shares with:
intent to defraud' the public.
The COMMON SERGEANT stated the case. The Company to
which these shares purported to being, was projected by
.t.wit in
(lividuals in humble life, who, haying introdoe-ed-digsprale,4 to
Mr. Ireland, a plate-glass manufacturer, in the Borough, and to
Richard -Dixon Mott, a fishmonger in Red Lion-passage, by means
of their exertions the names of a respectable set of directors were
obtained, and a flourishing prospectus put forth. The prospectuses
were distributed in the usual lavish way ; and at a meeting of
the shareholders, it being reported to them that the shares were
at a premium of 4 .pi• cent., Mott, for his exertions, received the
thanks of the company, and was appointed, together with Ireland,
the Managing Directors, and directed to take the necessary steps
for carrying into execution the objects of the company. About this
time a person of the name of Mitchell, connected with the defend-
ants, introduced himself toClark,who is a stock-broker on the Stock
Exchange, and having stated the prosperous state of the Imperial
Plate Glass Company, informed him that it was the intention of
the Directors (as it was unnecessary for them to speculate) to keep
back 1,200 of the shares under lock and key, till they. had at-
tamed a premium of 25 per cent. Clark was no doubt led to
suppose by this flourishing account that the shares of the Com-
pany might become a profitable speculation, and on the 21st of
April he was introduced to Mott and Stainsby, the other defendant,
a clerk in the house of Bosanquet and Co., and by their represen-
talon was induced to engage in the purchase of 238 of the shares
from Mott, Stainsby corroborating the account given by Mitchell,
by stating to Clark that he was the owner of 1,200 of the shares,
which he meant to keep until • the premium had reached 25 per
cent., as he entertained the highest opinion of the Cowpany. It
was subsequently discovered, that instead of the 238 shares which
Clark had purchased being part of the 2,000 stares which by the
prospectus, it appeared, the. capital of the CoMpany was composed
of, they were in point of fact 238 shares over and above the
number of 2,000 to which the capital of the Company was li-
mited, and were surreptitiously fabricated, for the purpose of de-
frauding the public. The learned counsel remarked,- that no
doubt many observations would be made in consequence of what
had occurred here within the last few days, on' the character and
conduct of Mr. Clark, to which, if liable, he must submit ; but
besides the loss which be had sustained, it was not merely a ques-
tion between him and the defendants, the jury would have to con-'
sider whether a gross fraud had not been practised on the public
IS well. He had no doubt they would find the defendants guilty.
Wm. Walker—l am acquainted with the defendant Mr. Mott ;

he is a fishmonger. Mr. Ireland is a glass-manufacturer and
upholsterer. . Stainsby is a clerk in Messrs. Bosauquet and
Co.'s banking-house. I acted as secretary to the Imperial Plate
Glass Company, in the latter end of March, 1825. I have not
got the proceedings of that Company. (The proceedings being
produced, in reference to them), the witness stated that Mr. Mott,
Mr. Ireland, and Mr. Stainsby, were present at a meeting on the
?.9th March, when it was resolved that Mr. Mott sail Mr. Ire-
land should be appointed managing *kirectors; to make.the neees,
sary arrangements for carrying on the company. At a subsequent
meeting it was resolved that the directors should be permitted to
dispose of their shares, after the 26th of April. Ou the 3d of
August a meeting was held for the purpose of investigating the
m inner in which Mott and Ireland had exercised the authority
with which, at a previous meeting, they had been invested for the
disposal of the shares. One of the prospectuses was then iden-
tified by the witness, directing that the number of shares should be
limited to 2,000, at 1001. on which a deposit of 2/. per share was to

be paid. A letter from Ireland, dated April 25, 1825, addressed to
Messrs. Bosanquet and Co., the bankers of the Company, authoris-
ing the passing of the Scrip receipts, which might receive the sig•
nature of Mott only, was then read. In continuation, the wit-
ness stated, it was not the general practice to write to tl.e bankers
respecting the issuing of the shares ; but the letters signed by him
and Mott were prepared and signed by them for the purpose of
enabling the bankers to issue shares. They were signed for the
purpose of delivery to purchasers, who might take them to the
banking-house, awl on payment of the deposits, receive the scrip
receipts. Oa the 20th of April, I attended, with Mott, at
the banking-house of Bosanquet and Co. The Directors examined
Ireland as to the issue of certain shares. I was not present at

that meeting, and I went with Mott to Bosanquet's on the 20th
of April, previous to a meeting of the Directors that was to be
held that day. A quantity of tenders for scrip receipts were pro-
duced to me for my signature ; I declined signing them, as the
numbers were not filled up. Mott suggested that the numbers
might be filled up by Stainsby, but I objected also because they
had not received Ireland's signature. Mott said, " Why should
you object. lam one of the Managing Directors, and the bank-
ers have Ireland's authority to issue the scrip receipts on my sig-
nature?" On that assurance I signed the tenders.
Cross-examined by Mr. SCA,RLETT.—IreIand had as much con-
fidence in Mott as I had. I had mit the least suspicion that Mott
meditated any fraud, and I had uo reason to think Ireland had.
A resolution was passed that the 238 shares above the number
of 2,000, should be re-purchased, if they could be bought at a
certain price. At that meeting. Ireland attended, and continued
to act as a director, and concurred with the others in that mea-
sure for relieving the market of the 238 shares. Ireland is a glass-
manufacturer.
The LORD CHIEF JUSTICE...--He is an esquire; all directors are
I suppose. (A laugh.)
ExaMination continued.—The title of esquire was abandoned
after ; he is a looking-glass-maker, in the borough of Southwark.
I have known Ireland a long time ; he bears the character of an
honest man generally. On my oath, I believe Ireland incapable

of the fraud impUted to him.
Cross-examined by Mr. Hour, on behalf of Mott.—The in
tials " R. D. M." on the list of shares are, I believe, Mott's.

don't know that they are in his handwriting. "R. Watson, 25
shares," I believe to be in Stainsby's writing. "R. D. M." ap-
pears written in different ink. I received that paper from Bosan-
quet and Co. It has my signature as well as Mott's. I did not
report to the directors that I had signed papers with Mott's signa-
ture only. Mr. Mott ceased to do any thing with the company
before the papers were missing.

Mr. Se...KLETT submitted that on this evidence it was impos-
sible to maintain the present indictment. The company were al-
leged to have been legally formed, and it must, therefore, be taken
to mean that there were legal shares, which appears directly the
reverse.

The Loan CHIEF JUSTICE said, that- however he might re-
present stage of the pro-
egeaerddinthgse
he
ejsehcotiuolnd ansota lawyer, is ipnrutslelueution.
Cross-examination continued.—lily name and the numbers were
on the letters when I signed the papers. lam brother-in-law to
Ireland.

By Mr. Comxtos SERGYANT.—We have been at variance for
some time.

.....
William Clark.—l was a broker at the Stock Exchange in
April, 1825 ; I became that year acquainted with a person of the
name of Mitchell; he applied to me to purchase some shares
from him, as far as regards this indietment--I mean 238 shares
of the Imperial Plate Glass Company.
After I saw Mitchell I
saw Mr. Peter Stainsby ; I had purchased shares in this com-
pany before for Mitchell, and had seen Stainshy there; I first saw
hint in April ; Mitchell introduced him to me; he said he was the
owner of 1,200 shares in the Imperial Plate Glass Company, and
that his opinion of it was so good that he would not part with
any of them until they reached a premium of 251. or 261. per
share ; this was all that passed then ; I saw Stainsby on the 21st
a second time ; I saw Mott for the first time on the 21st; he was
introduced to me by Mitchell; Mott and I went to the banking-
house together; he said he had 238 shares of the Imperial Plate