Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1904-01-29

tracts, ard shares for 1880 on0 were
issued to the holders of ordinary shares
for sl,950.000 i'll the original companies,
and $1,000, coo to holders of $4,000 de-
ferred shares.
1t was the collapse of this great
speculative enterprise that swallowed
up the promoters fortune and reputa-
ton. Directly and indirectly the share
holders Of whom there were thousands
are believed to have lost S10ooOO.Oc0.
The names of many of the English
nobility, including the Duke of Con-
naught and Lord Loeb. were involved
in the failure. and the Earl of Dufferin.
who was Il director. lost much or his
fortune. 1t was said afterward that
, the earl'5 health was seriously affected
/ by the revelations of the financial
operations to which he lent the digni-
~ of his name.
| The promoter protested that the
| treachery of his mining engineers,
together with the financial depression
| caused by the Boer war, was the
cause of the failure. The engineers at
the mines, he insisted. were controlled
! nv London stock brokers, who We're
inimical to him. and made false repre-
: sensations as to V;.i,;c, causing him to
buy at very high prices. The company
finally collapsed utterly in December.
! 1900.
! Previous to that time the promoter
! had lived in great splendOr. His coun-
try home was at Godalming. in Surrey
| 80 miles from London. This magnifi-
cent house had a famous palm garden.
many suites of reception rooms and a
i great ballroom, with one OF the best
dancing floors in the country and cap
| able Of accommodating several hund-
red persons. At one end of this room
was u stage for amateur t1eatricals:
at the other Il great organ the whole
. surmounted by an observatory con-
tanning one Of the largest telescopes
in England. The estate comprised in
all about 1000 acres and was adorned
:, by gardens and terraces. statuary.
pagodas and sumner houses. rare trees
and many lakes stocked with trout
On MS .;trun yacht, the Sybarita the
fastest in British waters. he once en-
tertained the king. and the yacht was
! fitted out in the most luxurious man
ner Among his friends he numbered
| dukes. earlS. cabinet ministers and
! ambassadors and it was to his person
atty and the plausiEility and clcdrness
with Which h outlined his most dar-
ing ventures; that much Of his success
| was due.
1t was at the height OF Nright's
| fame that Hatold Frederic vrot" The
! Market Place" in which he described
| Wright under the guise OF Stormont
/ 'Fhorps, tn hero of the novel. The
promoters f9-year-old son is just out
Of Eton. and ne leaves two daughters.
| the older c. whom is Il. and both Of
whom are said 10 be strikingiy beau
tiful.
| Lord Dufferin was severly censured
| for his connection with the companies.
! but in u speech to the directors he
! frankly declared his position and Won
much sympathy. 1t was not until
January. 1902, however, that any action
was taken by the shareholders looking
to Wright's punishment. Arnold
White, the author, condemned the re-
missness of the government in refus-
ing II public prosecution. and was ad
judged guilty Of contempt. fined 100
and sent to EriXton prison i'll conse-
quence.
Action was taken on March TO- WHOM
Justice Buckley in the chanc"ry division
of the high court of justice mad" an or
der directing the official receiver If the
ruined corporation to prose. ate Wright
on criminal charge but Tho warrant
could not b. served as Wright WuS enjoy
ing a long SOiouln in Egypt.
A year later another attempt vas mail"
to get him. and he disappeared again,
only to pe arrested when he arrived in
New York on March Is. accompanied by
his niece. Mis- Florence Brcnwne. on thr
French in"r LII Lorraine. tie was held
for cXtr tditior. but thoHgh he declared
his willingness 80 go back voluntarily and
stand trial. h" made strong fight
through his counsel, Samuel t'ntefmNrr
. against cNtir,iitiun proceedings. finlliy
he waived his rights and wrlt back To
England. where his trial began carly in
August
Wright began his American career at
. the age of Il. with a good technical edu-
eaton, Particularly in mining and chem
jStrV. hut with no capital OF MS start
t he said while in the Ludlow street jail:
How did get that start? NEy. went
West. and as ! made Il little money | say
"a it and houGht few shares in a mine
that looked as if it would he profitable
= II VS. only a few dollars at first. out all
the time | vas adding to my Investment.
| bought Il mining claim outright tor 500
E ami sold half interest III II 10Y enough u,
pai' me back my original investment and
provide a working capital. The mine prov
ed proiitHhlr. and i little later Said ant
nay remaining half interest for "A good
profit. Then | did the same thing. With
3 Other properties. and kept on doing it UNI
til was dealing in amounts tildt made Il
!, Irott worth while.
lie was one OF the pioneers Of the Lead
willie boom. where after many revt rseS he
I acquired a considerable capital and then
: came East and began specua;tn@ on the
Stock Exchange. So fortunate was ne
that at the age OF Il his fortune was o.
= timatcd at (; million While nor" Il" ac-
:, CURED the friendship ri \. j. ''asSItt
N president Of the Pennsylvania IHIru vi
who was his neighbor in Philadelphia
I ana later h. also numbered among hi
Il friends Charles r. TerkeS and Charles NJ
: S;cllv;ab. In 1888 he went to England.
Much of his fortune melted away IN the
depreciation of Anne ric1n securities II
II lNg2. and in that year he turned .i* u /
n trntiun 10 Australia. wEerr rich So!,
]. mines had recently been discovered. ~
organized TN. West Australia Exploration
II co. bought the Lake View mine. an,
IS gradually Increased his holdings. Whicl
* returned him enormous prCtt:*. ii w.
:, out of these companies TINT Ia" Globe W.:
=" formed in 49,. The British Amerit AZ
IS with Ii Sl.5ol'r0 capital. NiN formed il
e. the same year. Two more with y com
!, biucd capital Of $l2.5p0 800 followed ii 1888
two more with capital "t s.. "oo i:
- 1Sn9 and fly" in 1870 With combined "a
= ital of S2%.lt,."n. n gross capital of $50,
: 6,5,NO for Wrights London schemes.