The evening telegraph. [volume] (Philadelphia [Pa.]) 1864-1918, 1868-08-03
SIR MORTON PETO.
il he True Representative of British
Cspitalists 9-soms OF his FInancIaI


From the Pail Mall Gazette JulyI7.
Three years ago Sir Morton Peto and party
Of friends made run through the United States
on sort of self-appointed mission. They gave
themselves out to be distinguished representa-
tives OF British capital and enterprise, and were
received accordingly. Their progress was q
series OF teasis at which the lofty character and
bene6cent achievements of the b. C.s Ga fond
and familiar abbreviation of British Capt.
talists') and especially OF their leader Sir II,
Peto, were celebrated in conjunction with the
stock sentiments about Tightening the bonds
of brotherhood" and anglo Saxon kinshp."
The speeches we're duly reported IN the Ameri.
can newspapers, with list OF the dishes
and detailed descriptions of the per-
nor did Sir Morton omit TO publish the
regulation impressions dc poyGge on his return
to Eng land. Not long afterwards, the financial
difficulties OF the London, Chatham, and Dover
Company having reached crisis, and reflections
having been made by indignant shareholders
against the contractors, SIl Morton Peto had the
audacityto challenge the House of Commons (of
which he was then member) to appoint n CON.
mitee to inquire into his conduct. The proposal
was OF course absurd, and was vt once set aside;
but the member for Bristol was rewarded by
certain conventional expressions of respect for
himself personally, and for the class he was sup
posed to ty piiy-the British merchant and man
OF businesS-whiCh were drawn from Mr.. Glad
stone and Mr.. Di>raeli. There is certainly no
reason to suppose that the sort of people who
drank champagne and ate canvass back ducks
IN America at his expense, and then made
speeches in his honor were at all serious in their
laUdaLioDs, or that the leaders OF the two great
parties in the House OF Commons intended their
remarks TO be taken literally. But Sir Nor
ton Peto has for good many years been putting
himself forward, both at home and abroad, as a
Kind OF representative man, some people may
have rather confused ideas as to what it is he
really represents. 1t is worth while to call
attention to some proceedings in which Sir
Morton has recently dgured, III order TO point
out certain differences between what in the
language of the turf is called "publcn and
private FORM" and to make it clearly under
stood, especially in other countries, that,
though he may be fine specimen OF a certain
school OF spectators, his methods of business
are not those upon which British merchants and
capitalists generally pride themselves.
When the great firm of contractors, Peto
Belts, and Champion, failed in 1866, il was con-
tdently asserted on their behalf that, though
the panic which then prevailed rendered it i'm
possible for them to obtain ready money to
meet all demands, they had abundant resources
to pay everybody in iull. All they wanted was
time to realize; they had more by million, Sir
Morton Peto said, than they owed. Since then
these splendid calculations have gradually been
taking another shape, and it now appears that
the balance is about million the wrong way
The liabilities of Peto, Belts u Champion were
by their own admission, &l,0O7,676, reckoning
the DEBT TO the London, Chatham, and Dover
Company at f3650OO as admitted by
the baDkrupts themselves. On the other haud,
the assets were represented by two thousand
pounds, exclusive OF property held by creditors
as security, sum quite insufficient, as Mr..
Llnklater stated, to pay the mere costs of the
u
discharge under sucn circumstances the bank
rupts received, according to the reporters. ''the
hearty congratulations of their friends" On
the relations between these gentlemen an / their
creditors we have no remark TO make. They
seem to have kept their books properly, though
the intricate relations between the two firms
of Peto Il Belts, and Peto. Champion & Belts
rutber bewlder inexperienced outsiders, espe-
cially when it appears that the latter made
over some f8OO,OO0 to the former, and that
Mr. Champion is one of those Chi.
valrous, Confding creatures who never
stoop 10 the sordid business of examining
accounts. IL never looked at the books" said
MIR. Champion, ''to see how the firm stood. |
did not interfere with the arrangements of the
firm, financial or otherwise. If had known
the others wanted to keep money that was due
to me should have let them keep it," Here
indeed is a model "B. c." That the proceed
ings in bankruptcy have not been earned any
further may perhaps be not unreasonably
attributed to the fact that the chase was costly
and the game worthless. Whether my
clients" said Mr.. Linklater, on behalf of the
London, Chatham, and Dover Company, "had
proof upon the proceedings for 1850, 900, or Tor
96,G(0,0O0, the result would, unfortunately, be
just the same-in neither case Woald there be
any dividend"
Morton Peto and the general public that the dis
closures in the Bankruptcy Court are most sig
nihcant and instructive. The principles of the
great art and mystery of financing are here laid
bare. They can best be illustrated and explained
by one or two examples. First take the case of
the A and Metropolitan Extension Stocks. 1t
was dTIdDReu DeIWeen lue directors OF Lle O0aJ-
ham and Dove and Peto Il Co. that the latter
should be not only contractors but finance agents
OF the line, conduit pipes" as Sir Morton
described it, for the disposal OF stock; that their
remuneration should be In proportion to this
double labor; and that they should be paid IN
shares at par, with rs per cent as commission.
This was in the summer of 1850. Before autumn
this agreement underwent some rather import
ant alterations. The contract prices were made
somewhat higher" as much as 20 per
cent. higher, for example, as regards per-
manent way, the charge per mile being
raised from &5l07 to 96l80; the expires.
sion tat par' WAS omitted, Sir Morton Peto
couldn't tell why;" and the contractors engaged
10 pay per cent. interest on the B stock, In
violation of the law prohibiting the payment OF
interest or dividend out of money raised or Dor.
roWed. For the purpose of floating the stock 1t
was announced that the shares were all
taken, the fact being that not one was taken,
though they had been nominally subscribed
for; and the shares were accom- panied by the
tempting offer OF guaranteed interest. And
obvious Inconsistency was here apparent, for II
the shares had been snapped up eagerly, II
was certainly odd that the bait OF per cent
interest should be required to get rid OF the L
shares. There were, however, people silly
enough to be deceived, and the shares were
disposed Of. To achieve this result deliberate
Misrepresentation had to be made as TO the
stock being taken, ana a statutory rale had tC
be violated in order to provide Tor the interest
on the B stock. Next, the A stock had to bC
disposed OF, and Peto d Co. agreed to take it a
f37 l0s., pocketing, however, their 25 per cent
commission, just the same as If the stock hac
been at par.
And this is not singular instance of lawless-
ness and deception. Here is another lagrant
case. In 1864 Peto y Co., were in want OF funds,
and applied 10 the London, Chatham & Dover
an 90 doh BLin n