St. Paul daily globe. [volume] (Saint Paul, Minn.) 1884-1896, 1888-06-03

be million, of which, say, one-half
only will be called up. Applications
for shares can be made through our
bank. The other details Mr.. Unit will
advise you on"
The prospectus drawn up by Mr.. Unit
and approved by Mr.. Brownlow was not
whit more misleading than some that
are to be seen in the newspapers every
day. The capital was TO be that named
by Mr.. StOrmOnt, and the prospectus
went on to say that the present partners
OF the firm-the Misunderstanding real
lied handsome fortunes, were DESTROYS
of relieving themselves of the arduous
cares of business. They had, in the
most generous manner, offered to hand
over to the limited company their
entire interest in the agen-
cies founded by them over a century
ago in Singapore. Ceylon. Calcutta and
other parts in the East. The new COM
pany would thus be at once in position
to begin earning dividends without any
preliminary expense whatever. The
present profits of thA company would
yield dividend to the shareholders of
10 per cent per annum on the paid-up
capital, but it was confidently antici-
pated that the turnover could easily be
doubled, in which case profits would be
available to pay dividend of 20 per
cent.
A day was fixed for application and
allotment. and under Mr.. Units expert
enced guidance about 100000 prospec-
fuses were promptly disseminated by
the post over the entire united king
dom.
At last the eventful morning arrived
when applications for shares were to be
A cfrn 7
don and Calcutta bank about 9 o'clock
might have thought that "a rum was
expected. The doors were not yet
opened for business, but surging,
eager crowd was waiting in anticipation
OF that event. Barbados had been
erected to prevent undue pressure:
strong body of police were ready to en-
force order if required. But the crowd
was good-humored, for every man of
them hoped soon to be the lucky pos
SCISSOR of at least some shares in the fine
old, rich firm of Brownlow, Jones &
Richards.
AT last the massive bolts and bars that
secured the entrance were undOne.
Then what pushing, jostling and
striving there was for who should be
first in! The bank had never had such
a days work. Even with a double re-
lay of tellers, it was long after business
hours before it was able to close it's
doors, and the following morning con-
tinually changing knot of disappointed
Investors might have been seen cycling a
notice On the outside door informing the
public that the share list of Brownlow,
Jones & Richards, Limited, was closed,
the applications having amounted to five
times the total issue.
Then came the interesting question of
allotment. The shares had been sold
forward by some speculative firms,
and all offered had been bought
up by Mr.. Unit and Mr.. Stor-
In sending out letters of allotment, it is
needless to say that MeSSrS. Unit and
Stormont carefully avoided these gen
try. In placing the shares, in fact, they
took care to select only people who
would be likely to hold on to their allot-
ments, and who were at the same time
in position to pay up calls to the full
amount of their holdings. The bears
being thus ''cornered," it is superfluous
to add that the banker and the account
ant reaped a rich harvest. for when
settling" day came the shares were at
a premium of 10 guineas.
For more than year the new COM
pany prospered amazingly, and de-
rate OF ID per cent per annum. Assisted
by board of enterprising directors (the
nominees of Mr.. Unit, the amiable Mr..
Brow nl0w occupied the presidential
chair with great satisfaction to himself
and every one else concerned. But the
man who really held the reins of power
was Mr.. Grabbal, also a nominee of
MeSsrs. Unit and Stormont, He was
the managing director, and through
him all the company'S financial bust
ness at the London and Calcutta bank
was transacted.
One day, to the surprise of the board,
Mr.. Grabbal reported that the London
and Calcutta bank had declined to dis
count further drafts on Indian agencies.
and that it would be therefore neces-
sary to call on the shares.
This was accordingly done, and the
call was fairly well met. At the end
OF three months, however, a second call
was made, and this aroused the share
holders suspicion. They therefore
held general meeting and appointed a
committee of investigation, and the
committee report was so unsatisfactory
that it was resolved to wind up the
company voluntarily.
Mr.. BrownlOw was absolutely ruined,
as he would never part with one of his
Dut UIlIo was llOG JIG WOISU.
The shareholders, who were naturally
wroth with him, applied for a warrant
for his apprehension, which was granted.
The poor old gentleman felt the dis
grace of his position so acutely that his
reason gave way, and when he was
brought before the court for examina-
ton he was so obviously insane that the
magistrate refused to commit him, and
some friends had him removed to an
asylum. He is still there, and amuses
himself daily (and his fellow patients)
by the promotion of imaginary limited
companies.
1t has been stated that the bank had
other customers of the type of Brown
low, Jones q Richards; and in their case
Mr.. Stormont pursued precisely SIM
liar policy, with equally successful re-
suits. He thus saved his bank from in
solvency and at the same time made
large fortune for himself. And in the
accomplishing of this he was greatly in
debted to the limited liability act-and
Mr.. Unit.-LOndon Truth