The New Orleans bulletin. [volume] (New Orleans [La.]) 1874-1876, 1874-11-08
Joint Stock Companies in England and
London RaScality.
From the London Correspondence Of the New
York Repuhlic

From the London Correspondence of the New
York Republic.1
An examination in progress at the Mansion
House once more directs attention to the fraudu-
prises in this country. The outcry that follows
any exposure of Wall street dishonesty leads the
uninitiated to credit London Spectators with
more than common integrity. The recurrence
OF startling revelations establishes the fact that
Ill no country in the world are cOnfding invest
ors more frequently swindled by projects gotten
up under the auspices of persons occupying
respectable positions in society, and manipulated
by brokers aud bankers Of good standing IN this
city. In the case now being ventilated before
the Lord Mayor, people supposed to be reputa-
bic lent the influence Of their names to bare
faced fraud. They accepted positions as directors
without investigating details and without invest
ing shilling. Some of ttem were paid in one way.
some IN another: all Of them being Influenced
by irregular considerations, ana permitting the
use OF their names regardless of the risks IN
Cured by innocent parties. In certain instances
these obliclng gentlemen subscribed for large
amounts OF stock, to give an appearance of s,Ic-
cess to the project, at the same time executing
bank transfers. Unfortunately there is nothing
novel III this. For years past scarcely a month
has elapsed in which tricks of this nature have
not been resorted to to float worthless schemes.
Lords and clergymen, baronets and barristers,
have sold themselves to Inscriptions promoters,
and the gullible portion Of the public, deluded
by the appearance of decent names in the
advertised LIST of directors subscribe for shares
which turn out to be worthless. Frequently
the amount of stock actually subscribed for is
but fractional, the bulk Of the amount required
to secure recognition on toe Stock Exchange
being bogus, and based u: on sham letters Of APP
piication. The victims are lucky it they lose
only the sum they pay in the first instance; IN
other cases they saddled with costs incident
to the winding up of the concerns, and their
anxiety extends over years. Not once in fifty
times are the perpetrators OF tbs Sc frauds pun
ished. We hear OF them in the present case
simply because not content with swlndhDg the
of the Stock Exchange. That vrtuous COR
poration permits the use of its facilities to
mslead the public, bat it has no mercy for
rascals who dare to cheat Its members. The
particular transaction which has led to the arrest
Of well known persons on criminal charge
CURED considerable sums OF money, and these
We're furnished by the man sger OF the Midland
Bank. A "settling day" had been appointed
for the Eupion Gas and Fuel Company. and it
was necessary to produce the impression that
the whole Of the shares were paid UP. Tie
bank manager supplied the money, on accept
ances drawn by one confederate and ac-
e aet. 5000, by another, holding :. , de- ,.
through the National Provincial Bank of En-
gland Meanwhile, brokers had been instructed
to sell shares, and when the time came for de-
livery they We're unable to fulfill then bargains;
for, by a series Of blank transfers. all the stock
had been concentrated i'll the hands Of the parties
to the fraud. How it will close matters little for
my present purpose. Whether these offenders
are acquitted or punished is OF less moment than
the exposure Of the system which made their
proceedings possible, and is constantly bearing
similar fruit The classes most interested how
ever, really appear to heed no warning. There
is great fuss just now, but the excitement will
soon die away, the exposure will be forgotten,
and another batch of knaves will find fresh
supply of dupes.