, 1869-03-19
A Gigantic SIocE-Johh1ng SSrtndla IN
kueIAuo.

"Fa!sc, fictitious, and fraudulent" =" are not
rlce words, it must b. owned, but they have
Just been applied bf Vice Chancellor Aa1lna
In the most etDphht,c and unqualified man.
rsr to certain t1snsacttans which have re.
Gently etEsged good deal OF eis attention,
and in which Mr. Harvey Lesis, II. P, and
some ether persons were the leading ac1ots.
The case l. a very simple cue, and It's essen.
ual teatut,s may be put In few words. In
lst>a Ar. Harvey Lewis ard his friends con-
ss,sed ssNt:1. The bed, idea Of purchasing the
t.te, Of Paris. That gentleman, on his
rant, Vas quite willing to sell It price Wis
agreed upon, and the rexr step was to pro-
cure TIE pcccssary fluids TO carry out the
Transaction. Ia the first instance the pro.
moteIs aprlied for assista: &c " the Ottoman
IL. nta.saa :afss sss Il Mss9 sf
hitsor-~e1s Directors, the last baIns also
Chai4mac. TIE Ottoman Finaucis1 resd1lE
undertook to float .he scheme in .he shans
OF limited conpsus. This operation, how
ever, rt1ulrca money, and unfortunately iba
Ottoman Fluan' ial had nooe. Not that this
map Of tie International Contract a. we'll -
tie Q tona. Fmaucla', companies of about
equal stability" a. the Vice Cha, cellor dfyty
nmsrked. Thete two conpanie: had beel ia
the habit Of endorsing each other's bills, aud
tn The city vulgar but expressive phrase
ouI oE cupieJeo ~ uesc{1ne Tue kfndred
Ettthles.ncss IT their Acceptarce4 ). The
Ott.man Compspy," said Sir r. Mains,
!" had neither muney nor credit, and the Ia.
leItattonal Cpctfucs WIS III Iuuc1 tn. SAM.
position" II, however, the Inse1na ion
Contract had no N oney In their Golfers, next
ao9s ras bang ~hach had. Moreover, the5
lad frfrEds IN The erection Of the bank. Nj,
H- L.: Is and Nj Hewson, promoters Of L.
lite & Co. {LimIted}, AID directors Of the
Ustcman Financial, had also seats at the
b5atd Of The National Bank, which al
that time furth,r etjoyed the ndyan-
rage o. ei1 j. Mckeona's seryices as man
aging Director. A. arrangement was made
taat the International Lontract Company
should take 4ooW shares Of Laftte i CO,
(lamitedl, Payue tor them by pfIuIssory
tetes. WHICH the aaiionu! Back sgreed to
discount on l:sh11e 4 Cot tLlmlted) deposlt1ne
1oa,.a tnm su.nsien; , to eoSer the amount.
posted 9ss3s $50 with the Eationai Bmk
and ctrsifed 10 the Stock Exchange th1t
tbik nmout rrpres ented rh41ts actually taken
up, a1'ht ugh all oi it, except some E7,550,
sas rtqui:ed for the prtm1.sory notes Of the
Information q Contract, aud was subsequently
appi1ec to that palposA.
To put it in single sentence, what the
trsusacti.n \ nu1ou: ted to was this The pro.
moters Of Latlt:e & Co., lL,mited) wanted to
eet TO many shsres taken up; thc.r friends.
tue Ottoman financial ard 1usernatfon4i
Contract, ~.rc Wiling to help them, but hsd
reither money nor credit; and all thar the
Natiotai BAnk agreed 10 do was to cash The
International Ccn:ract Compauy's bilfs wish
tie nuury Of La1tte 4 Co. tL1mlsed). Ell
nit at1pR the intermediate comp paules. the
Transaction Is thus practically reduced 70 oue
between latllts & Go. (Limited) AID the
National BAnk. The stock Exchange, s.rl,-
allowed Latte 4 Co.. (Llmised) to
be quoted. CoDtcing investors took
shares, ana as the ncnrS came In 1t was Ap.
Flied 10 sahlno up the International Con.
, :.aet lot1usns's 5tlla. The question which
tue Vicr-chsnct)lor had to decide was
Nhether ttl= cid net amount TO al Illegal
| use oi the fund.- OF Laf1t,e & c.. {Ltmitcd).
und be dec, ded it In thr u1lf native, de,cslb.
mK fhe ~b: IL 'ransactlor a. ''Ialst, fc isious
anu fsauduItnl.'' The oheucea Of Mr. Harvey
Le~t. and the other promntcss Of Iadt1e j.
Conps. Limit d, may. accordi:g to this
dsclstot, ie fhns summed up: theG pub
fisns q false prospectus ttatsn:. teas sharts
wire taken up wticn we're not taken mp {thls
comes under the Consolidated l. .rccay sct) !;
they committed frauu on the Stock Ex.
cha"ge Committee in The same way; they
Committed "a gross brlach ct trus:" In ap-
plSltf The iunGs OF their shareholders tc The
tlle1 a1 purpose Of buying up shares Of sae
sla u.e. Tue National Bark On :he,r sidc,
IS p,rty to the fraud. a1e ordered to make
good the m'hey Of Latte i Co. {Llmi.ed),
with TLich they paid the lctittous
bills Of the Ia, er; st1onal Contract Company,
their ren eoy bflny against Mr. Il. Lewis and
bis eo.dtrtc ors. <. mucl for the Vice
| &C succ1lor's decision; but al good teal
has lecn said o. lac about MYSTERIOUS dis
1ilc.loa bet~ecn a fraud IN equity and 3
ffsud IL c'lmiua1 law, one wonders whether
tie tllGnCes imputed IL tne di.re1vss ol La
at't j. Co. tLsulieh] belong only 10 ole or
hstth 'at, CORES. Ah If there were only q
| pubic prosecutor t-The BttdFt.