The evening telegraph. [volume] (Philadelphia [Pa.]) 1864-1918, 1866-05-30
Total e82 $1S14 en- 500 81 500 sl67 $50 ZOO

Total 1892 81 614 677 500 81 1S4 800 Sl67 $3.50 700
Thus the total capital intended to be embarked
was not lar short of two thousand millions of
dollars; but many of the projects proved abor-
tive, and in other instances the process of wind
ing up, voluntarily or otherwise, mad com
meneed at the date to which these figures are
brought down. The aggregate capital of the
new companies proposed during the three years
almost reached the total amount invested in the
construction OF Railways in the United Kingdom
from the date OF their commencement.
To exhibit the variety of enterprises these
projects embraced, it is but necessary to survey
the list Tor 1865, in which year the companies
projected may be thus classifed:-ll9 manufac-
turing and trading ii banking, l3 railway, 8
financial and discount, 80 building and invest
ment, assurance, Is shipping, 40 mining,
Gas, IL no els, and Is miscellaneous; total, 2S7
In addition to the $50, $685. $50 of deposits re-
quired during the year 1865 for the new com.
panieG inaugurated during that year, 36,S9S, 200
more was called upon new issues of capital by
previously existing companies-the capital of
such issues being $50 4530 0O0 and the premiums
$2G97500 The foreign loans introduced during
the same year amounted to 1921, lSl, Sl5 OF
which $lOl, l5S,3l5 was called up. Some OF
these latter were, however, principally sub
scribed for in France, while ore OF the l0ans
presented chiefly conversion Of pre-eXistins
bonds. Consequently, only about $4,000, 900
was required IN England on this score, which
added 10 the S9S 000 600 invested in the Joint,
stock companies, gives total OF nearly $l50,
100000 expended in foreign investments and
home speculatlons during the year.
The concoctors of these public companies in
many instances introduced clauses into the ar.
ticles OF agreement, that were directly inimical
to the interests OF the Shareholders Businesses
were purchased for very large sums, without
sufficient vouchers as to their value, and it was
afterwards found that they had been bought much
too dearly. Managers were provided for for q
long term OF years or tor life, and in some cases
even their widows and families secured in case
of their decease. The remuneration OF directors
was fixed at eXorbltant rates I'm one case equal
to one half the entire sum that hight become
applicable to dlyidendl, and frequently without
the slightest regard as to whetner a profit was
earned or not. Clauses were arttully drawn
fencing in the directors on every side, and vir-
tually preventing the Shareholders however dis
satisfied, obtaining an INSIGHT into the real state
OF affairs, or eflecting any change in the drec-
ton. But people with plethoric pockets cared
not fol such trivial matters as these; they were
promised enormous dividends, and that was suf
hcieut; but they have nOW learned to their cost
that fine promises, like fine words, butter no
parsnips.
Thus guarded against intrusion, and screened
against the peering of lnquisitive eyes the art
tul managers oil these associations were ena-
bled, by false pretenses and 600 kedn accounts,
to give fictitious value to their shares and to
win the confidence OF speculative none y-lenders,
who freely discounted their paper But as
soon as the prospect OF q European war caused
a heavy decline in securities and shares, these
| ofisprings of financial imitation were the trst
10 feel the effects of the rising storm, and one
| after another exhibited their internal rotten
| the first breath of wind that was waited over
| the commercial horizon. With their tall, con
| fidence was lost in the various financial esta
| blishments that had succoured them. Then
/ came the panic, and then those houses soon fol
lowed in the wake OF their proteges AS is tho