New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1876-03-18

could find, to send In applications for shares as
"mere matter of FORM" Some sent in applications
for 5000 for more, gave receipts for them and
received what prpOrted to be receipts for the aot
ment money upon them. Not a single cent Eor
single share really changed hands, but the Company's
books show that the required number of shares had
been allotted The receipts and vouchers and the
rest of the necessary documents were all In proper
form, and would give any inspecting them the
idea that the Eupon must be a prosperous and
genuine Company. To cover up the last lOop-hole
for detection $4,000 was borrowed from Mr.
Charles Knocker. the manager OF the Midland
Bank, who undertook the financing of the Com
pany. This was not much, hit win
| skillful manipulation it was made to go d, a
| lOtncnt of shares the necessary amount to cover
them was paid into bank to the coTpanys ac-
count, but Immediately afterward withdrawn on
pretense Of being paid into final bank, and was then
paid in again with the fresh applications ms pro-
cess was repeated until even he bank books were
made parties to the conspiracy by showing that the
shares had really BEEN a loIted and pad for. Two
| OF the morning papers singulary enough, mt upon
the same sne to illustrate tbs novel piece OF OF
the theatrical army which marches across the stage
in seemingly endless file the soldiers who go OH ut
one side running behind TO come on at the 't TI
Daily Acrs puts ii Just a. the stage manager Dy
prudent arrangement of exits and entrances makes
| n dozen supcrnunerarcs represent host, 80 were
the Stock Exchange Committee deceived" Like all
other tricks it's simplicity is amusing now that We
know how it's done - but II succeeded.
The Stock Exchange Committee was actually on
its guard Adverse minors about the Company were
floating in the city; il was suspected "all Is not
sweet-all is not sound;" and the Committee eN-
amined the Company's books with more than or
binary rigor; but nothing wrong was detected.
There were the books, there were the receipts aud
vouchers and there were the banks accounts, all
in proper form, all showing that the shares nan
been allotted and paid for. The Stock EXchnHgc
" deceived.
would have been. IL granted a setting day" ana
opened its doors to the Company. All TINS tnne no,
one share had been parted with they were AL III tio
hands Of hr. AspinGll-which II is important 10 re-
member.
These are the main facts of the far as re-
lates 10 the first charge, of inducing the stock TX
change Committee to grant "scttingday' through
fraudulcn, representations. They were proved
to the satisfaction of the jury, who convicted
Aspnall. Whytc, Muir and Charles knocker "i tue
oicnse. But 1t is impossible to believe that the pro
moters of tie company mean 10 stop at this point.
carefully conceived plan had been rs carefully ear
red out much valuable time anu ingenuity ma heeh
spent upon il, and some cash M least had bteh us
burscd. What was 10 bc ihe return ior an tls' LOT
some return most HSsurcdly must nave rc'h i"oNeh
for The jury acquitted the whole oi tue drlrhd-
ants of the graver charge oil conspiracy 70 dciaua'
but thcir subsequent proceeding strongly ll'i'as
that such conspiracy really existed. lndc,d' on
no other hypothesis are their carefully lGd scheieS
ineligible.
II is the custom here as suppose il is in most cx-
changes for brokers TO purchase shares which are
not delivered until "settling day." which may not
lie until several dlvs after the purchase aud then to
sell them to another party, who III ms turn may sell
them again. And so the shares may be sold and re-
sold dozen times before SETTLING day" comes
round that is, before the shares have LEFT the
custody of the original vender. By a rule OF the
Stock Exchange if the shares are not forthcoming
on "settling day." the ultimate purchaser may buy
them in the open market 1T any price he peas' ana
compel The peIs who originally contracted TO sen
them to pay the difference between the price actually
given and the price contracted for Very soon after
the Eupons had been granted n quotation. Dr.
Muir. who was the noniiua owner of l3,ouO
shares, began 10 sell, pending sttnhs Hayii
and about the same time MI Ahp,hhii'
who il must be remembered already heid an INC
shares began 20 bny. Here WAS " market already
clratcd The brokers fell into ile trap ana hogan
10 huy ana sell the lascs of the Company. Clever
Mr. Aspinall, however. did rot purchase openly IN
his own name. but through a number OF irirds, on
the "mcre matter Of form principle ana 50 many
obErng friends did he find that there really sece'
10 be a brisk and genuine demand Tor Luplohs;;
When settling day arrived sle'eh nrohrIn ,p,r',J y,
Eupipn shares which could not DE got h9ld al any
where. They were simply "corhrIed' Ia iac..
Tbcv appealed for time, they denounced the thing
as zone OF the greatest swiudcs ever pefp; trited,
but Mr.. Aspinail was incXoiabc IL the shares III.
not delivered in due time they mus U. 91nsii, ~,
was hs.con>istcnt roply-that Is he would buy teh1
from himself at his own price and make the brokers
paw the difference. lie had the brokers entirely at
his mercy They bound 10 deliver shares
which il was impossible TO get, for MI. Aspluai.
already held them all, and by virtue ot the rule OF
the Exchange he c0nld make them pay Whatever
price he chose il hundred tunes their value
Clever Mr. Aspin: however, was too clever ior
he made the situation too hot 10 bc borne. he
brokers Indignantly invoked the aid oil tue St1ek
Fxchaugr Committee 1 lac g9th rule on which Mr.
Aspyall based all his calculations. was suspended,
and the swindc fell dead and fiat. The prosecution
which has lust terminated was then commenced.
with the result already mentioned. The sentence on
The foar convicted defendants IL postponed untii an
ingenious point of law which l. reserve Ell FOR supS
rior court, has been argued but this Is now ther
ONLY chance OF escape.