Omaha daily bee., 1896-11-29
English People Daft Over the Boom in
Home Companies,
EXCEEDS BY FAR THE KAFFlR CRAZE
South African Furore Seems Mild When
Compared to This.
PROMOTER H00LEY REAPS HUGE PROFITS
His Wonderful Daring Has Made Him
Immensely Wealthy.
SAMPLE OF HIS WORK IN FlNANCIERING
buys IA Company nt Five Times Its
Face value and Immediately
CnpitaIizes IL ut nn
Advance.

Copyright, 1886, by Press Publishing Company
LONDON, Nov. 2S.-(New York World
Cablegram-special Telegram.)-In a recent
cable dispatch / gave to the World some
facts in regard to the Wild speculation now
in the English stock market in the stock
OF certain bicycle and other home organza-
tions, capitalized at enormous sums. Even
the South Africa craze OF two years ago
apparently was the same SO far as invest
ment goes compared with the present mad
ness Ernest Terah Hooley, the chief pro-
moter OF them all is the most conspicuous
figure in Great Britain touay. He is the
son OF a Nottingham lace manufacturer,
starting only a few years ago with
moderate capital He is known to be worth
many millions today. His chief lieutenant,
MIR. Harvey Ducros, is well known in New
York where | believe he lived only in
moderate circumstances for some years. He
is OF respectable southern Irish family,
and is also now a multi-mlllonaire. or
this recent frantic speculation in enter
prises of a seemingly most reckless char
acter. while American securities of the best
character go begging in the market, the
report of the Board Of Trade, issued this
week. gives some startling figures.
During 1895 the new joint stock companies
started in Great Britain and Ireland mum
bered 53S and their aggregate nominal cap
ital was f2l6309 9lO (sl OSl $40 $500, an in
crease of 10 per cent over the number regis
tered in 1894 The unsuccessful companies
in 1895 amounted to 81 per cent of the new
companies registered as against 66 per cent
in the preceding year. Thus. of every two
companies foated one may be counted as
doomed to certain early disaster. Figures
for 1896 are not yet available but II is known
that while the total capital registered may
not be as great In 1895. the bankrupt COM
panles will furnish a still higher proportion.
owing to the South African and West Aus
tralian gold slump. and the extraordinary
number OF rubbishy Industrial companies
which have been offered for subscription to
a gullible public.
ONE ILLUSTRIOUS SAMPLE.
The Bovril company is a striking example
OF this apparent madness OF the English in
vestor. BOyril is a beef extract. Some years
ago its makers started as company with
capital OF 100000 CS2, 500 ,OOO). There has
been progressive growth Of dividends. the
net profit OF the past year being fSS. 900
G44OOOO) Some six weeks ago Mr. Hooley,
who foated the Dunlop pneumatic tire for
f5,0OO,OOO, offered the BovriI shareholders
f2,OO0,OOO for their concern. Since then al
most every newspaper in the kingdom has
been utilized to advertise Bovril in the guise
OF interviews and by many other ingenious
ways. In due time Mr.. Hooley. having thus
prepared the ground, offered Bovril to the
public for f2 500 600 and the stock is said
to have been applied for several times over
although the dividends promised in the pros
~
sumption that the net profits OF the CON-
pany will be doubled in the next twelve
months. There is an enormous amount OF
capital lying idle in this country. because
OF the big Withdrawals from both South
African and American investments Mr..
Hooley has been catering for a good por-
tlon of this unused money with truly Ma
poeonic daring, resource and success.
SCANDAL IN LONDON COUNTY COUNCIL
When John Burns NJ. p, returned from
his visit to the United States he drew some
dreadful pictures OF municipal corruption
in American cities. and held up the Lon
don county council as paragon of munich
pal purity. At present he has his hands
full with a scandal on his model council
which Tammany could not easily improve
upon. At his instance mainly. the council
creating a Works department with that
object. The officials OF this department have
now been convicted of systematic NAL
feasance by transferring balances from one
job to another. so as TO mislead the council
into believing 1t was making savings all
around. The Works department was Gre
Rted to prevent jobbery between members
of the council and contractors, but job
berry simply has taken another
shape Great heat has been engen-
dorod between the moderate and pro-
gressiye parties In the council over these
discoveries The moderates, otherwise CON
seryatives, resisted the creation of the
Works department being seemingly anxious
to perpetuate the system OF contracting
which reached such pitch of corruption
under the Metropolitan Board OF Works
that that body had to be dissolved by the
imperial government. Mr., Burns. in the
debate this week deliberately charged By
name moderate councillor with having
secured a valuable contract for the com
pany OF which he is chairman by intrigue
with certain officials OF the Works depart
ment Though this charge was made pub
llcly, with every possible circumstantial
detail. II has virtually been ignored by the
London press. and the council itself has
taken no action upon it.
WAKES UP A NEWSPAPER.
The Evening Globe. which unearthed the
scandal was charged by Burns at the same
time with being sctuated by interested spite
against the council because certain adyer-
tisementS had been withdrawn from its
columns. The Globe responds by calling
Burns "a liar and coward" because he
has declined its challenge 10 repeat his charge
,Fl. al - I.k. fulF. Iss.Frs
against him for criminal libel, his utteranceJ
In the council being privileged. After
fierce debate, an inquiry has been ordered
by the council into the whole administration
OF the Works department with a special view
20 discovering what members OF the Work
committee were priyy to the Juggling OF tho
balances.
This scandal had only just been disclosed