New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1898-03-06


but was too shrewd to allow himself to be named
"a a director He remained in the background.
hvt was represented on the board by four d.
rectors who took their and their fees from
him There was an auditor. who did not kno"
how to audit There a chairman. VINO CON
sidered il improper for a director to he snare
holder and whose excuse for not exposing '"e
rascality under cover all around him was the
singular plea that the same kind or thihg Was
going on in all joint stock companies. 1here
was a secretary who had his joint OF beer every
Saturday There was a manager, VINO receNeu
brides in the form Of Christmas boxes, ana 'here
we're champagne suppers at Bournemouth ana III
Mr. Drew's back parlor in London. at which the
puppet directors winked hard at one announcer
and talked about the small economies which
were successfully practised. The game went on
for twenty years. with systematic overcharSes
IN favor Of the firms in which Mr.. Drew was
silent partner and the losses Of the stockh0ldtrs
are estimated at 100000 by the prosecuting
counsel.
The butcher having organized the company
ard secured a directorate and management UNI
der his pay. became a universal purveyor ana
provider at prices above the market quotations.
He supplied the meats. poultry cheese ard green
groceries and overcharged for them. He made
money out of the coal and electric light sup
plies. H was financially Interested in the
laundry at which the hotel linen was washed.
Tho furniture from linen draper who
had business connection with Mr.. Drew ana IL
was rated high above cost. The butcher was
interested in various other concerns. which
proGted by the business and patronage Of the
} Grosvencr Hotel on an eXtortionate scale Of
prices If he had owned all the shares OF the
hotel company it would have been losing spec
,.;th loo iN KIDD
bribed a, low rates. There were other share
holders besides himself and they had purchased
their stock in the open market. In their interest
a suit has been brought agains; Mr. Drew and
his directors ard a verdict has followed which
will not only involve restitution Of plumber. but
criminal proceedings for conspiracy and fraud.
The Knghtsbrdge butcher made apparently
only one tactical mistake He ought to have
bought up all the shares and devoted all his en-
ergies exclusively to cheating himself. In max
ing restitution ne will have the privilege OF
largely reimbursing himself for hotel losses in
Cured through his own profits as purveyor; but
incidentally the other shareholders will have
their rights and he himself may have to serve
out term criminal charges. The case is a
prize package Of anomalies. The jury has rem
dered a verdict against the butcher. the manager
and the directors, but the Court has hesitat~d
to issue an order for the appointment Of re-
ceiver and for accounting Of damages. The
/ cOnspirators. with the verdict against
them. left in possession OF the hotel. and
are at liberty to continue their peculiar methods
Of management by paying more for the supplies
than the market rates When the public prose-
cutor comes upon the scene there will be a fresh
anomaly. Mr. Drew will be indicted and tried
for conspiracy against and robbing himself the
chief stakeholder. and a few other shareholders.
and possibly his defence will be devotion to his
family and his poor relatives. whom he estab
lished in business in order to share with them
the profits Of overcharges made largely at his
own expense.
Mr. Drew appointed his father-in-aw a di
rector and enabled him to do good business
a DOulterer. Another director a brother
who was succeeded by a nephew. Another di-
rector was a brother-in-aw. who managed the
laundry. Another brother in-law was a poul-
terer in the ring. and another relative married
the draper who was active the furniture
/ contracts Another relative the wine mer-
chant dealing with the hotel Mr. Drew pro-
vided employment for all his kinsmen in these
various conspiracies against the hotel in which
he had invested his own money; and he Is be-
lieved to have extended his operations to half a
dozen other hotels in which he held stock. 1t is
a conspiracy which resembles grotesque com
edy Of the Gilbert type Everything done
by tool-pigeons and kept in the family. The
butcher purchased the shares through dummies
and held them in their names. he controlled
and managed the hotel by creatures OF his own
whom he bribed to hold their tongues when he
was systematically defrauding himself: and he
set up circle of dummy tradesmen to repre-