Eureka daily sentinel. [volume] (Eureka, Nev.) 1871-1887, 1874-11-15
DO

The extreme of human credulity
would seem to find its fullest. if not its
most frequent expression, among Lon
don investors and members Of the
London Stock Exchange. The avidity
with which money is advanced there
to float every bubble that comes along,
argues either a distressing plethora OF
unemployed capital. or a chronic care
lessness in the employment of it,. sim
gularly in conflict with the careful,
common-senSe business habits of the
English people in other respects. Ex-
perience seems to so fer little in the
way of admonition or warning. No
sooner is one fraud uncovered than an
other stalks on the stage, or, more cor
rectly speaking. into the police court.
One of the latest places in an awkward
predicament a concern claiming the
euphonioas appellation Of Eupion
Fuel and Gas Company. Sundry per-
sons prominently connected with it
were summoned before the Lord May
or on the 9th inst. 70 answer a charge
of I" obtaining by false ana fraudulent
pretenses. and 10 acquire tothem>elves
and others on their behalf, various
sums of money, with intent to deiraui
certain meniSers of the Stock Ex-
change, and whereby one of them
was, in fact. defrauded to the
amount Of $500 and upwards
The modus operandi, as set
forth in the complaint, certainly dis
plays a degree OF ingenuity that might
well put to the blush the dark Ways
and vain tricks that are popularity i'm
puted to the heather Chinee. \ GER
tain Mr.. Muir, who claimed to be the
inventor or patentee of a new method
Of producing gas, organized a COM
pany for the purchase OF the various
patents, and Putting the "Eupion"
through a I" regular course of financ-
Ing 1t was imputed to the defend
t that having obtained the entire
control OF the whole share capital.
they trusted certain respectable brokers
with the sale OF a large number OF
these shares; that, through other
accomplices, they agreed to pur-
chase from the brokers the same
shares; that they arranged among
themselves, when the settling
day on the Exchange came, that the
shares should not he forthcoming from
the alleged sellers, and that the reputed
buyers should then either claim a
large sum by way OF compromise f; ON
the brokers, or, by insisting upon the
fultlment Of their bargains. make
them purchase fresh shares al an enor-
nous premium. In this way, it was
alleged, no less a sum than $3.50, 900
had been attempted to be extorted from
the brokers. We have what may be
called the filling up of the story, in
the following extract from the police
report in the London Times:
The capital was $50, 600. in $4,000 |
shares OF 81 each, and the patents
were to be bought tor go. 000-namelv.
x25 900 i'll cash AMI tl5.00 M in fully
paid up shares Of the company. The
alleged paen.s had been conveyed by
Muir TO the defendant, Mr.. Fry, and
then sold by him to tie company.
Five directors We're obtained, the quail
fca;ion 100 shares each and the
money being found by the defendant,
a Nr. A>pinwall, who Was the main
spring OF the concern. ON the 9TH of
Apri the company applied to the
sock Exchange for a quotation on
Their official list and for a settling dav.
and they furnished documents, under
the signature of Mr.. knocker, the
secretary, showing that the whole
10000 had been allotted-35,0o0 to the
public and $4,000 % the inventor-and
that E34,365 had been subscribed in
all. The truth was that the company
mad never possessed a single bona ride
shareholder, and that all the shares
had been subscribed for nominally by
clerks and others (65 in
AID, they no paying a ahilling for
them, and executing Immediately af-
terward blank transfers, which they
handed over to Mr.. A~spinwall. The
bankers OF the company were the Ma
tional Provincial Bank of England,
and, in order TO strengthen the appli-
cation 10 the Stock Exchange, the pass
book was sent in, showing payments
in all to the company's credit OF about
G35,eOO. That result had been most
ingeniously effected. A sum of be-
tween $1,000 and 5000 was borrowed
from the Midland Banking Company.
Of which Mr.. Charles Knocker, a
brother of the defendant OF that name,
was the manager, and, ben. split up
30 as to represent various shares, was
paid into the National Provincial Bank
TO the credit Of the company. 1t was
immediately afterwards drawn out
under the pretenss of being deposited
at interest with the Midland Bank, and
1t was then similarly paid in and
drawn out again day at or day until
the requisite sum Of E35, 900 was made
up.