The Liverpool Standard and General Commercial Advertiser.
Liverpool, Merseyside, England, 1841-11-05 00:00:00

IN RE T. S. CAVE

EXTRAORDINARY SPECULATION IN MINES.—This was
the day fixed for the final examination of the bankrupt. He
was deeply engaged in mining speculations in Cornwall a few
years ago, and having been comparatively successful in his
first attempts, he soon obtained the reputation of being a
" fortunate" man, and having embarked in an increased
number of a similar nature, he obtained " subscriptions"
from clergymen in Kent to the amount of £lOO,OOO and up-
wards, and from one member of parliament alone (Colonel
Rushbrook, M.P.) no less than £75,000. The mines turned
out to be almost a total failure.

The learned Commissioner asked if any solicitor was in
attendance to put any questions to the bankrupt touching
his accounts, as, if not, he would not delay his last examina-
tion for more than a few days.
Mr. Nias, a solicitor, who attended for several creditors,
said that from a severe inquiry by himself, and also from in-
formation which he had derived from the official assignee, he
(Mr. N.) was perfectly satisfied with the accuracy of the
bankrupt's accounts, as presented to the court by Mr. Hut-
ton, the accountant, at the express 'desire of the creditors.

Sir C. F. Williams.—l am Obliged to the official assignee
for his very effective examination of these voluminous ac-
counts, for I confess that my early impressions of the case
were very different from those which I now entertain, having
given it in the meantime my most anxious consideration.
Mr. Nias.—My clients, your honour, fully share in your
feeling, although they are fully satisfied that they will never
get any thing by delaying the bankrupt's final examination,
they still believe the accounts to he accurate.

Sir C. F. W, illiams.—l thought it almost impossible, until
the present case, that an estate, in which so large a sum as
£260,000 had been embarked, should have ended in produc-
ing nothing : but in justice to the bankrupt, and as affording
some satisfaction to the creditors and the public (who could
not reasonably have been satisfied if the utmost vigilance had
not been exercised in the investigation of the bankrupt's ex-
traordinary affairs,) I shall proceed to put some few questions
to him, in order that he may have an opportunity of explain-
ing how it happened that so large a sum should have been
expended, and end in producing nothing but " cobwebs."
It must really appear to be incredible to the world.
The bankrupt was then sworn; and in examination by the
Learned Commissioner, gave the following evidence :—I was
for many years in the War-office, at a good salary; and about
the year 1829 or 1830 I first commenced my view of entering
into mining speculations, and had property to begin with to
the amount of £12,000 or £13,000, partly in cash and partly
in an estate mortgaged to a Mr. M`Donnel for about £20,000.
I never put out any flaming prospectuses nor seductive ad-
vertisements to induce any party whatsoever to join me, nor
did I ever ask any one to join me who actually did so. On
the contrary, all those who did join me were actually
" volunteers." I collected £360,000 in subscriptions in the
course of five or six years, and many persons, from whom I
now hold letters in my hand, pressed me to allow them to
subscribe to the speculation.

Several letters Were here handed up to the learned com-
missioner, and, after their perusal, he said that he did not
feel it right to mention the names of those persons who had
flung themselves into so profitless a speculation.
Examination continued—l did not know the names of the
writers of some of these letters ; and so many pressed to join
me, that I told them that I must reduce the interest from
10 to 7 per cent.
Sir C. F. Williams—Such delusion, such infatuation
would scarcely be credible, if we had it not upon oath before
us.

The Bankrupt—Only two persons ever made any inquiry
as to the produce of the " mines," or the nature of the ac-
counts, as the mines had a very " high reputation," and I
think they are very valuable still.
Sir C. F. Williams—lndeed ! and they never realised one
shilling for the creditors. We shall have no such delusion
here. What was the amount of interest which you paid
upon those subscriptions, and from what funds did you de-
rive it ?

Bankrupt—The amount was £60,000, derived from the
subscriptions, and so acknowledged by me..
Sir C. F. Williams—l am thus endeavouring to give you
an opportunity of setting yourself right with the public,
whose impression must have been against you from what
transpired at your former examination. I also wish to show
the public the gross imprudence which the subscribers to
this absurd speculation have committed, while many of them,
I fear, have been ruined. The ten per cent. interest was also
paid out of the subscribers' own funds ; and yet it was some-
thing in favour of the bankrupt that all this delusion was
created, not by his deception or alluring insinuations, but by
the whispers of one to another that the speculation was likely
to yield them their ten per cent. What, Mr. Graham, was
the produce of the mines ?
Mr. Graham (the official assignee)—The mines never
yielded any profit from the beginning; but two of those, in
which the bankrupt held some shares, produced £lB,OOO.
By the Learned Commissioner.—Did you, Mr. Cave, ever
give any one any particular character of those mines ?
The Bankrupt.—Never, except the printed account of the
sale of the different ores ; and to pay the 10 per cent. upon
the advances, which would have required an annual profit of
£36,000, which I was not allowed sufficient time to realise.
What is meant by the " Cook's Kitchen ?"—lt is the
name of a mine which realised £2,000 a year. No one ever
asked me for any certificate or voucher as to the quality of
the mines, nor did 1 ever ask any one to give me the slight-
est recommendation.

At your last examination you said that your best mine was
sold, and your second best settled on your wife. Which
was that second best ?—The Godolphin; and such is the ge-
neral estimate of its value, that parties have since advanced
me from £30,000 to £40,000 upon it ; besides which, the
money has all been kept in this country.
That is your philosophical reflection ; but I think the best
thing would have been if you had saved it for your creditors.
Your friend Captain Richards, the manager of the mines,
and who knew best about them, never subscribed a shilling.
—I would not allow him, and though he did not subscribe,
his uncle, a most respectable miner, did. I now owe Capt.
Richards about £22,000, and he was to have had £6OO a year
for his management, as the expenditure was equal to
£lOO,OOO a year. There are only three or four of the mines
now at work.

I observe that £121,000 was advanced by a very moderate
number of the clergy—is that so ?—lt is so ; and I ceased
paying the 10 per cent. after the end of the year 1838. There
was a registry of all the shareholders, which any one who
thought proper might have inspected at any time, and there
was no concealment of any sort. The only funds in the
banker's hands for the use of the creditors were two sums of
£5 2s. and £1 10s.
The abstaact of the balance sheet, as banded in by Mr.
Hutton shows the following particulars :—To cash £1703 3s.
5d., beside an estate in the Kent-road, valued at £BOOO ; also
several shares sold in mines in Cornwall ,value £326,844 ss. 4d.;
creditors, £37,230 10s. 4d • liability, .f,500—making a total
of £366,277 19s. ld. The' credits are stated to be—good
debts, £1165 16s. 10d. ; bad debts, £6202 17s. 6d. ; balance
at banker's, £5 10s. Sd. ; property nothing ; profit and loss
account for property expended in the mines by Mr. C.,
£339,792 Os. 10d.
; house and private expenses from 1833 to
1840, £ll,lll 13s. 3d. ; liability per contra, £soo—giving a
total of £366,271 19s. Id
Sir C. F. Willi am • s
—I think it should be made known to
the bankrupt's creditors, and the public, that the court deems
his
iexplanations to be satisfactory, but it is at 91e same time
awful to think how so many persons of education,rank, and
statiot? n society could have been deluded, by their own in-
fatuation alone, of the enormous sum of £360,000. Unless
cause be shown to the contrary, I shall pass the bankrupt
this day week.

LORD WALDEGRAVE AND CAPTAIN DUFF.—These gen-
tlemen, having completed their term of six months' incarce-
ration in the Queen's Bench, in consequence of their being
implicated in the attack on the policeman Wheatley, some
time back, were released on Tuesday.

San Guiseppe, Tropiana, from Castellamare, at Gibraltar, and
sailed 15th October for this port
Mary M'Kenzie, M'Kenkie, hence at Lisbon
Oporto, Smith, hence at Oporto
Bois Amigos, Campos, hence off ditto, out 52 days
Superb, Mowett, sailed from Oporto 20th Oct. and the Paquete
dos Azores, Ilibeiro, the 22nd, both for this port
Undine, }tanner, hence at Copenhagen
Tees, Beswick, hence at Kiel
Tre Venner, Storm, hence at Odense
Henrik, Muleiff, hence for Pilau, at Mandahl
Frederike & Marie, Pusan, hence for Stralsund, at ditto
Maria, Klein, hence off Pillau
Don, Muir; Sisters, Brewer; Seabird. Lyal, and Thoburn, Hud-
speth, hence at St. Petersburg
Empress, Hodgson, hence at ditto, leaky, and with part of cargo
thrown overboard, having been on shore on Stoneskar Reef for
four hours, and will have to be hove down
Jason. Flindt, hence off Warnemunde
Margaret Litticiohn, Watt, from Archangel, at Cork
China, Balls, from Quebec, at Limerick
Kitty, Atkinson, from Quebec, at Youghall
Lancaster, Bond, from Berbice, off Faimouth 30th October
Isabella, Blake, from London for this port, at Plymouth, leaky,
and with loss of bulwarks, sails, &c.
Splendid, late Laird), from Jamaica to this port, was wrecked on
the Isle of Pines gth Aug. ; crew and part of the cargo saved, and
taken to the Caymanas
Liverpool, hence for St. John, N.B. was spoken 7th Oct. in lat.
42, long. 60
Alciope, Bennett, hence for Buenos Ayres, was spoken 19th Oct.
in lat. 44 14, long. 10 20
Apparition, hence for Syra, was spoken 12th Oct. 40 miles N.W.
of Cape St. Vincent
Plym, Davies, and Eleanor Palmer, hence for Constantinople,
were spoken 13th Oct. at anchor off Cape Spartel
Cornubia, Bell, from Maranham, at this port; sailed 27th Sept.
The Sarah Trotman sailed 2 Ali for this port.