New-York tribune., 1876-06-17
LONDON STOCK JOBBERY.
TIE INNER HISTORY OF A COMPANY.

OF sALDANHA AND LORD LENNOX INVOLVED.
PROM THE REGULAR CORRESPONDENT OF TIE TRIBUNE
Lo, DON. May 27-lesterday was begun in the
Common Pleas, before Lord Chiet-Justice COleridee
and spcclal Jury, of the most extraordinary
trials even known IN England Under the name of
1Wycross act. Grant and Others yGu may not
recognize u, hut ~ TIE Lisbon Steam! Tramways
It's evil ilmc has already crossed the Atlantic.
You have nc,,ru Oi ii, il III no other way, case
which the iae Mr. Schenck IN the habit of Te
icrrng TO. IL ID the Ill which hi, "muclI-
est teu'd hiend, the Duke of Saldanha," figured as
director and 10 furnished TO Mr.. Schenck prece
dent for nis own directoIshIp in the Emma Mine. IL
has another connection with the Emma Mine in the
fact that MIR. Albert Grant the promoter" of
both Aud the trial of the present action has long
been looked forward to with some anxiety, because,
in addition to all it's other highly -splced scandals,
the reputation of sundry journalists said to he
menaccd 10y expected disclosures. But / think
nohody dreamed that what actually occurred yester
day would occur.
Mr.. Twycrcss the plaintiff, is an Australian wool
merchant, who applied for 70 shares in the Lisbon
Steam Tramways Company, got them, paid $500
for them, and now brings this action to get his
money back again. The action is not brought
against the Company, which is in liquiGation nor
against the directors, but against Mr. Albert Grant,
who iloatod the Company and against Messrs.
Clark, Punchard 81 Co, who were contractors for
the construction of the tramways. 1t il one of s.
actions all brought by different shareholders against
these persons, and all based the same ale
cations viz thai the defendants, being the original
promoters of the Company, knowingly and traudu-
lcnty, and with intent TO induce persons to take
shares in the Company, issued prospectus from
which they omitted the contract that had been
l.
mcmt of promotion money and with the Company
for the construction of the tramways. BY law this
omission ia a fraud. The 3sth sectionof the Compa-
MES act of 1867 cnacts that every prospectus shall
specify any contract entered into by the company,
or its promoters, directors, trustees and any
prospectus not specifying the shall be deemed
fraudulent. Thus far the may seem technical,
but the rest of it stands IN no need OF cchuolllt,s
Ii is long tmo since these actions were brought
The defcndants h;v, exhausted every means 10
delay the TRIAL of them. Commissions have been
issued ana witnesses examined in Lisbon and else
where at much expense of money and great expense
of time. SuiGo II the most eminent counsel IN
England hayo been employed by the defendants.
The services Of Mr. Sergeant Parry were at The dis
poeal of Mr.. bert Grant, and the services of Mr..
Hawkins, the leader OF the English Bar were not
denied 10 Mcssrs Clark and Punchard They and
one-appcarcd IN court. Yet when the cause came
on. Mr. Hawkins aud Mr. Sergeant Parry announced
in behalf of their respective clients that thcy aban
dored all defense and eubnltted to Judgment. They
did not admit moral fraud, nor did they intend
to let the other 81 cases 60 by default Bat effort
was making, they sad, To rcsusctatc the dead
Company, and Mr. Albert Grant-wth that tender
consideration FOR the shareholders oi which
he lately gave proof IL the Emma case
also-feared that tho success of this effort
might be prcudiced by q public trial of the
present action. so, after vanly appealing to the
Court To postpone it, the defendants offered 10 with
draw their pleas and consent To verdict for the
whole amount claimed. Sir Henry James. who leads
for the plaintiffs, after remarhiug that nobody could
have supposed the defendants going to confess
Judgment in an action involving charges of fraud,
chose to 90 Oh with the II he did not, all thai
had been done in this case might have to bo done
over again in each of the other 81. ] presume mo-
body has a moments doubt that the defendants took
the they did in hope tO prevent the complete
exposure of their frauds which must come ont by
trial; satisfied hat in any event. the verdict must
be against them. Sir Henry james rightly declined
in the interest of public justice to be party to such
a proceeding. 30 tho case wenton. The defendants
counsel aficr sitting through part of Sir lienTys
opening left the cOurt. The public has therefore
against their clients a. absolutely true.
Sir Henry Jamess opening long one, but
need give only brief summary of it. Mr. SchcncTs
esteemed friend. the Duke of Saldanha, was at the
bottom of the whole business. He held concessions
from the Government Of Portugal to construct the
tranway He made the acquaintance of MI. Albert
Grant, who; thought something could be done with
them. Mr.. Grant proposed to Clark ~ funchard,
June q 10 make a tender for building the tramways
and June Clark Il Punchard sent III proposal to
construct 100 miles for ~ $4,000. month later
thoy made fresh proposal, by which, instead of 10
nilea they were To build only 6S miles, ont were TO
be paid for the 6s larger sum than that for which
they had offered to build the 100 mlles-Nl ,545,ouo
Suppo,ng the road could ever have been built at all
the fair proportlpnate price for the Is miles would
have been rather less than Sl0OO,OOO What was
10 be done with tho extra SjOOOO
Some explanation of this may bc found III M IN
teryening agreement between Clark ~ Punc'ard
and Albert Grant by which the former undertook to
nav Grant 5000, 900 for his services in promoting
fine COMPANY and besides this to take up 400
shares IN the Company at $50 each, and pay Grant
tbr mar yaiue OF them whenever called upon. BS
contract Of the came date, Mr.. Schench', esteemed
friend the Duke of Sadanha was to receive sum ol
81 10 OOO-iuore than twice what Schenck got from
rk-of which $50 900 to be in cash, the resi-
in fully paid up shares. or tho extra halI-mlllio'
then which tine shareholders were to be invited 10
subscriLe Grant gOt-not counting shares-$-1o'-
oOO Le Mancha for introducing him to sadanha'
s35 900. and the balance figures under the head oi
interest," Not a hint Of all this in the Prospectus
The prcllminariCs thus comfortably arranged MI.
Grant Organized the company. chose the Board oil
Directors prepared the prospectus. and received ihe
subscriptions The directors were p'dd various
aims for the uso OF their names; and some very
'' 1. ..... ..,..,..r iLn,n hrrc IL