The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1898-08-19
HOOLEY AND HIS EARLS
INTERESTING FACTS ABOUT THE
PROMOTING BUSINESS.
The Process of Exploiting Industrial
Companies on the Principle that
an Investor Loves a Lord.

London Letter in New York Tribune.
The Hooley matinees are the most the
atrical entertainments of a dull season.
They are held in small, stuffy courtroom
and are attended mainly by lawyers and
journalists; but in a few hours everybody
in town and country is reading a detailed
report of the proceedings and reveling i'll
pure sensationalism. This weeks perform
ance was highly dramatic. The bankrupt
had placed a large number of titled direc-
tors and men of fashion upon their defense
by charging at the previous examination
that he had scattered his gold among them
in the days of his prosperity as a company
promoter There had been black cloud OF
disclaimers and denials from Mr. Hooley's
earls and benefciaries and some binding
flashes of truth were expected in the dingy
courtroom Flashes of intense light there
were. but the mystery enveloping current
methods of company promoting was dark
ened and deepened A great swarm of buzz
zing barristers protested that their distin-
guished and gilded clients had never sold
either their names or their sacred honor,
and that their pockets had never been lined
with Hooley money The bankrupt listened
with signs of impotence. and rapidly
ing denials and explanations, ending by en-
larging his black list and by asserting that
he had been offered bFibes to commit per-
jury. orr tr
Justice must be done to Mr.. Hooley in at
least one respect. His revelations have been
made under compulsion. He has not accused
his boards of directors voluntarily. He has
been forced by the registrar to make a
clean breast of his intricate and mysterious
transactions; and. since his charges are
steadily increasing in gravity as we'll as
piquancy, he has laid bare a public scandal
which will have to be thoroughly invest-
gated His manner as witness is neither
theatrical nor malicious. He speaks in low
tones, and seldom shows signs of either bit
terness or. passion. He is. apparently sin
should be compelled to incriminate so many
of his financial clients, and he is certainly
emphatic in his declaration that he is eager
for cross-examination on all questions OF
"sQUARING" NoBLEMEN. *
The burden Of Mr. Hooey's story is that
in carrying on the business of buying indus
trial companies for three millions and SELL
ing them for five millions it was necessary
for him ito square" the noble and honorable
directors whose names were required for the
front page" of the prospectus. Few of
these gentlemen seemed to entertain the old
fashioned notion that director occupied
ests of shareholders and investors. Most of
them had the new-fangled idea that their
names would .bei worth, "a good deal to
company which was Dvercapitalzed on
purely speculative basis, and that they
ought to be paid something handsome for
advertising the enterprise on the front
page" Not only had some of the directors
to be purchased in this way. but other gen
receive commissions for procuring good
drawing names and introducing their pat
rons or confederates to Mr.. Hooleys notice:
1t was moreover, necessary in the course or
these financial transactions to have large
secret press fund. and to buy up city editors
and professional blackmailers. All these
were incidents in the regular business of
successful company promoter.
Mr.. HooleyNs recitals have compromised in
whose names are constantly appearing in
society journals as leaders of fashionable
sets. Much old-time prejudice remains in
England against traffic in personal honor
and betrayal of public trust, and the titled
directors and fashionable brokers dealing III
high-toned names have fallen under what
they consider a cloud of unwarrantable as
pensions. 1t may be well to refer in detail
to some of these names:
Earl De la War; is the eighth earl, the
title having been created in 1861, but the
family is one Of the oldest and most dis
tinguished in England, the first baron hav-
ing received his title in 1909. The present
earl is in his thirtieth year, and succeeded
his father two years ago, his wife being
daughter of the first Baron Brassey. He
near Tunbridge Wells and Bexhll-on-House
and is a member of the Carlton and MARI
borough clubs. His uncle and heir to the
title is Lord Sackville, whose diplomatic adj
ventures during theyirye Cleveland admins
tration have not been forgotten either In
America or England. Mr.; H To- has as
War; e25000 for the Dunlop prospectus,
ell 800 for French Dunlops, $4,000 for Singer
cycles fan ard Rog an was used n on
the prospectuses of these companies. on his
determination Mr.. Hooley asserted that he
had been approached by two respectable
gentlemen" representing Earl De la War;,
and offered &1 900 if he would contradict his
former statement and explain that the
given as consideration for joining the
boards, but only as present. Earl DE la
Wars legal representatives nave traVersed
The Earl of ALTERNATE is the eighth earl,
the title dating from 1896. He is in his for
ty-first year. and succeeded to the title four
years ago. His wife is a daughter of Baron
Egerton of Fulton. He was in the House
of Commons for. two years, but mas peen
a sportsman. being interested in yachting,
hunting and racing He is member OF the
Carlton, Guards, Marlborough and Turf
clubs Mr.. Hooeys original charge was that
1000 had been paid for the use of the
earls name in the Dunlop prospectus The
earl has aulnorized disclaimer but appar-
emily has admitted having received $4,000,
and has asserted that he supposed that 1t
was the outcome of other transactions Mr.;
that he was offered 81 600 if he would with
draw modify MS charge against the earl.
This allegation is denied by the earls coun-
sell
The Earl of Winchilsea and Nottingham
is the twelfth earl under the first and the
seventh under the second title, and a man
Of distinguished lineage. He is in his forty
eighth year. having taken high rank at
Balliol College. and having served for two
terms in the House of Commons. He owns
about 1890 acres, has two country houses
and London residence in Bedford square.
of Whites. He was vaguely charged by Mr..
Hooley with being responsible for a pay
ment of $4,000 in connection with the use
of his name on the prospectus of the Cycle
Manufacturers Tube Company. although
the money might have gone to middlemen.
His solicitors repudiated the accusation. but
Mr.. Hooley on his reorganization produced
a check for R2.O00 which was paid to him.
The earl's explanation of his denial is that
his solicitors acted on their own response
bility. and did not consult him before issu-
ing their disclaimer. Mr.. Hooley's revised
version is to the effect that the earl agreed
to go on the board for G10,OcO. If his solicit
tors should approve of the business pros
poets of the company, but that ne stipu-
lated that the money should be paid to his
brother the Hon. Harold Finch Hatton.
Mr.. Hooley also asserts that the earl sub
seduently received 10000 for allowing his
name TO be used on the board OF the Horse
less Carriage Company and that Mr.; Law
son was allowed e3000 for his services in
drawing in the new director.
The Earl OF Warwick owns Warwick
Castle, Berwick House Easton Lodge and
10 POO acres, and was drawn into singer
cycles, but has denied receiving anything
for the service. Mr.. Hooley reiterates that
some one had R5Oo0 for the use of the earls
rame, and intimates that the family So