The Redwood gazette. [volume] (Redwood Falls, Minn.) 1873-1940, 1875-01-28

| as he was appointed Official nQulQatOr OF
Kopp's Company Uimited). My $500
worth of shares had not been handed
over to me; but as Kopp had promised
that this business should be all right !
ives not distressed or alarmed about it;
knew was qualified as director, and
so there was no cause for anxiety.
About a month after the affairs OF the
company were taken out of my hands
received a lawyers letter stating that
the sum of $500 was due from me for
shares in Kopp's Company (Limited), and
requesting that would at once pay the
money into the hands of the official
liquidator of the company. took this
document to Kopp, who laughed at it,
and said it was a mere form and that he
would see it was all right, and that moth.
ing could be done, as he had reserved
the shares for me and was duly quail
fed. Although ANXIOUS l was to a GER
tain extent satisfied by this statement
and took no notice of the letter. In
about three weeks, however, on return
ing home one afternoon was told man
was waiting in my dining-room who de-
sired to see me on important business.
l entered my room and found dirty
looking man, who bowed to me, asked
nv name, and then, handing ME a paper,
said that he thought it better to see me
himself privately; that it was no doubt
all right, but that it was his duty to
serve me with writ for $500 due to
Kopp's Company (Limited). l must ad
NIT that this proceeding almost took my
breath away. l jumped into hanson
and drove down to Kopp's office. He
had gone to the north on important bust
ness and would not be back for q week
or ten DAYS. I then rushed off to the
solicitor of the company, who said that
the opposition hadn't leg to stand on
and that of course / must defend the
action. On my way home l met the Ad-
miral. one of the co-directOrs, who
bluffly informed me had led him into
pretty mess.
Led you into mess?" l inquired.
"In what way?"
"Why, do you think I'd have Joined
this company" he exclaimed, sunless
Kopp had assured me there was not
more careful man in London than you,
that YOU had examined all details, had
found it must succeed, and had agreed
TO be director? With your experience
of accounts never thought for one mo-
ment YOU could make mistake, and so
I Joined because you had done 80. It's
all your fault; and I'm let in for e5OO,
and my name is dragged in the dirt,
which IS worse"
I returned home with thoroughly
puzzled feeling; that l had done moth
ing really wrong hoped, but l was I'M
certain about everything, for things
seemed suddenly to change their aspect,
and to present an utterly different ap-
pearance from that which had expect
ed. WAITED patiently for news, either
from Kopp or the solicitor, but nothing
transpired for some weeks.
One morning, about six weeks after
nv being presented with my writ, l re-
ceived a note from the solicitor, inform
ing me that my case would come on the
next day in the ice-Chancellor's Court,
and that he had no doubt should gain
my cause. 1t was my first law case and
l did not sleep wink the night before.
l attended the court and hoped might
soon be freed from my liabilities, but re:
ceived fresh surprise. was disposed
of in about ten minutes. 1t was shown
that had never paid farthing for my
shares, that l had acted as director,
and was from the formation OF the
company on the Board. A somewhat Sc
we're censure was passed on me, ana an
opinion expressed that men holding such
positions as I had done ought not to act
in the manner shown by the evidence. l
must pay $500 and Gals IS. Sd. costs: !
left that court miserable man; but
there was yet chance: MY solicitor
advised me to appeal; the case would
not stand for a moment; he could upset
it at once; and should be wrong to sub
nit to the decision. Such was the ad-
vice; but decided to he rid of the affair
and be a wiser, although q poorer, man.
I did so, and paid my liabilities.
Kopp had returned to town; he was
busy with another company-a patent
fuel company-and could spare me but
little time. He owned that he had been
wrong in his opinion as regarded my
qualification as director, but he could
not help it. He himself was almost ru-
ined BY the COMPOUNDED business, and he
must say the failure of the company was
in great measure due to my not having
exerted myself enough to procure share
holders, and so nothing could be done.
l left my friend Kopp with feeling
of depression; was not the man sup
posed myself to have been; knew
nothing of law, nothing of business, and
certainly nothing of companies, at least
not much; but had gained most valua-
BILE experience, at least experience that
had cost me e715 6s. Sd. Ihad, however,
yet much to learn and much to endure.
Soon after paying this amount ! met an
old friend, city solicitor, to whom !
confided my troubles. Having stated
my case he remarked that Kopp, no
doubt, had made good thing out Of it.
"Far from it," Ireplied; )" he was near.
ly ruined" i.
My friend smiled and said: What
capital was subscribed"
Nearly six thousand pounds"
"What was paid for law expens es, ad.
vertising, rent of Offices, etc. ?"
About two thousand pounds"
My friend smiled and said: "1would
bet odds that at least thousand pounds
of this went into Kopp's pocket; and
probably the official liquidator and he
were not entirely unknown to one an
other. Liquidation is, of course, expen-
sive, and some one gets the money.
don't fancy Kopp has made bad thing
out of it, nor has the lawyer of the COM
pany. Are you not aware of the fact
that joint-stock companies, limited, are
sometimes got up by parties for the very
purpose of getting the job of winding
them up-to say nothing of the pickings
that may be otherwise securedi"
Never heard of such thing" said I.
1t is clear have got lesson in affairs
of this sort"
"Just so. Do not, however, imagine
that all those companies rest on vision
ary foundation. All you have to do is to
be cautious. recommend you in future
to consult me before you join - direct
or of another company, and will give
you advice gratis"
My troubles were not yet over. My
family heard had lost heavily in this
speculation, and hints and innuendoes
innumerable were uttered in condemna-
ton Of those who could afford to throw
away hundreds IN reckless speculations