The Rutland daily globe. [volume] (Rutland, Vt.) 1873-1877, 1877-04-21
From the New York Sun ]
HOPEFUL EMMA.
How She is Willing to Cut Off Her Head in
Order to Save Her Nose.

HOPEFUL EMMA.
How She is Willing to Cut Off Her Head in
Order to Save Her Nose.
LONDON, April 4.
When the memorable Tichborne case
was pending, the friends of the claimant,
in order to raise funds to carry on the trial,
issued debentures which they sold at
twenty-five per cent. of their face value.
There were people infatuated enough to
invest in these bonds, which would have
paid them four hundred per cent if the fat
butcher had ever obtained possession of the
estates. This method of providing for le-
gal expenses was, l believe, entirely un-
precedented in the history of litigation. 1t
has just been adopted, however, on a still
more extraordinary scale by one of the no.
torious Emma mining company, which is
now prosecuting suit in the New York
courts against Park and Baxter.
The suit now pending in New York ia
declared to be IN the interest of the too
often swindled British stockholders in
Emma. In q circular issued the other day
to the shareholders, the McDougsl directo-
ry aver that unless they can immediately
raise $4,000 by this Tichborne method,
they may be obliged to abandon the suit,
and that the abandonment of the trial
would involve nothing less than the imme-
date winding up of the company. The
proposition which they make to the share
holders is go remarkable, and goes so far
beyond that put forth by the men who had
the fraudulent Sir Roger in hand, that
AN tempted to examine it to see how the
interests of the honest stockholders really
are affected by it.
The directors tell the confding share
holders that they have assurances from q
Mr.. Stoughton, their counsel in New York,
that the prospects are better Than ever,
that he ''has not yet used his strongest
points of cross examining Park" and that
they scan entertain no doubt whatever that
the trial will result in verdict in favor of
the cOn nanv rarrvinu vow, le--~ -~S ~
tween the present stage of affairs and the
glittering peaks already gilded by the pros
pective very large damages, chasm which
must be bridged with pounds, shillings and
pence. Mr. Stoughton, who is earnestly
performing his duty to the COMPANY
wants an additional $15, 900 for the contn-
uation of his earnest performances. Vari-
GUS other requirements expand the sum
which must be raised at once, in order to
conduct the trial to conclusion, to a total
of $4,000, to be distributed as follows:
Mr.. Stoughton's fee......................e3, 900
MI. foulkes Zee, say. ............. 1900
Mr.. SHELLS costs, the secretary's,
and other salaries, claims, and Of
flee expenses, circulars, cable
grams, etc., in England, .......... 1000
Expenses in New York, viz, jury
fees, printing evidence, mainten-
ance of witnesses, etc...............,.. 1900
UOU
Now let us see from the McDougal cir
cular how 1t is proposed to raise this $40
600. Having recognized the possibility,
however remote, of an adverse verdict"
the secretary's circular goes on to say:
The abandonment of the trial would,
however, involve such serious conseouen-
ces (nothing less, in fact, than the immedi-
ate winding up of the company that the
directors have determined to make one
more effort to obtain the necessary funds
from the shareholders, and thus be enabled
to continue the trial when the court re-
opens on the 4th of April. Several of the
shareholders have suggested that as the
subscriptions to the G10 debenturee, at the
issue price of 60 105, has not been suffici-
emily responded to, the directors should, in
lieu OF that issue, offer the shareholders de-
bentures at the lower price, viz, at the
rate OF el0 debentures for e.
The directors, therefore, abandon the is
sue of Gl0 debentures at 60 los, and will
make Ino allotments under it. But under
the powers conferred upon them by the
articles OF association they now issue ESQ.,
900 In debentures, either of el0 or e25
face value, which will bear interest until
paid off in full, at per cent. per annum,
and will form first charge on all the
of the company, including, of
course, the fruits of the verdict. The
form of debentures has been settled bv
counsel and the directors offer them TO
all the shareholders at the respective price
OF Il for the e10 debentures, and CO los,
for the f25 debentures and am instruct.
ed to invite every shareholder to send in
his application for as many of these deben.
lures as he may wish to take.
In plain English, the directors propose,
in order to raise the $500 required by
Mr.. Stoughton and other legal necessities,
TO involve the company in an Indebtedness
Oh $4O0,O0O They propose, In fact, to
borrow money to carry on their case, and
TO pay htty per cent. interest per annum on
that money, until the debt has been can
celled by paying ten dollars for one. This
extraordinary piece of manufacturing GER
tainly goes far beyond the claimants most
desperate efforts to raise the wind, and en-
titles the prospectus from which have
quoted TO place among the curlosities of
literature.
The final appeal of the secretary of
Emma Is touching in its dependency com.
Dined with Micawber-like hopefulness:
am instructed to point out to the share
holders that in order TO raise the absolutely
necessary sum of $4,000 the whole of this
ssue of the debentures must be subscribed
Tor, and that unless the whole amount
Q subscribed for the directors may
% Obliged to abandon the prosecu-
ion of this trial; and the directors
eel assured that the shareholders
ire not 30 utterly indifferent to such a re.
'ult as to neglect such an appeal as the d.
ectors (feeling confident, as they do, that
he result of the trial will be verdict car
ying very heavy damages) now most
make as their effort.
Shareholders, who remember the fate of
he Tlchborne bondholders, and who hest
ate about putting more money on Emma,
wen upon these too generous terms, are
nquiring what the company can gain by a
Ierdlct against Park and Baxter, when
he debentures will absorb more than they
IAN hope to recover, even If they are for
unale enough TO get judgment. | ought
o add that the stockholders have received
40 dividend since December /, 1879, not