The evening telegraph. [volume] (Philadelphia [Pa.]) 1864-1918, 1869-11-22
a Great Financial scandal.

London is soon to be treated with the de-
tails of a great financial scandal, involving
loss to the unfortunate shareholders OF tne
Imperial Land Company of Marseilles OF no
less than E764, ,719, or nearly four million
dollars. AS yet only the outline of the case
is given. 1t seems that in 1866 the Credit
Foncier and Mobilier of England, Agra and
AIastermans Bank, and the national bank
became the promoters of land company
with the above name, with capital OF
81 600, GOO. The directors were four iAem-
bers of Parliament, none of them well known
on this side of the Atlantic, NJ. Emile de
Girardin, and about dozen other gentle
men of London and Paris. In the prospec
tus it was stated that the company had been
in process of organization for nearly
year, and that on the purchase of the land
which was to be the basis of the company's
operations an immediate payment of $780,
523 must be made, the rest of the purchase
money to be paid in instalments. The stock
holders were to have 10 per cent. divided for
the first two years, and were led to expect
that afterwards, besides that rate of interest,
they might expect still further gains in stock
and premiums. The scheme was very attrac-
tive, and notwithstanding that several dan
gerous features were pointed out by the
daily press of London, the shares were
quickly taken. Nevertheless, after short
career the company failed, and the Court
of Chancery appointed three well-known
gentlemen as iquidators. The affairs
of the company were lately brought
into notice by a circular addressed
by the chairman of the Credit Foncier of Eng
land to the shareholders of that company the
assignee of the Credit Foncier and Mobiller
of England. He says that under the present
liquidation of the Imperial Marseilles Land
Company, the shareholders of Credit Foncier
are threatened with the danger of having to
pay up their liabilities to be expended in
wanton and fruitless litigation. He there
fore calls a meeting of the Credit Foncier for
the purpose of memorializing the Vice-Chan-
cellor to change the liquidators. This cir
cular was published in the money articles of
the London papers, and served to bring out
q reply from the iquidators, showing why
the Credit Foncier is so anxious to have the
liquidation otherwise administered. They say
that they have discovered that while the
promoters of the company professed to have
paid for the land in Marseilles the sum of
II, 100, 1923, they in reality paid only the sum
of G344, GOA, and that the balance, e764, 719,
OF more than two-thirds, ''found its way into
the pockets of certain persons from whom we.
the liquidators, shall seek to recover it,"
They add that the companies represented by
the write: Of the circular referred to received
Gore than half the amount, and that steps
have been taken to bring the matter to the
attention of the court, so that the sharehold-
ers may receive some of the money they have
paid. 1t appears to be by no means certain
that the offense of which the promoting COM
panies were guilty is one that can be reached
by the law, but the trial of the case will bring
out some points of great interest.