The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1906-08-09
ECCLES BUYS
| ON HOPES ADVICE
Ogden Capitalist Invests in
Bonds at Behest of ''Fren-
zied Financier."
ECHO OF RECENT EXPOSURE
GILT EDGED PROMISES THAT
WERE NOT FULFILLED.

An echo of the case of Beresford Hope,
'financier." was heard yesterday when
the announcement was made that David
Eccles of Ogden had purchased Ogden
waterworks bonds of the pay value of
$780, 600
The glittering promises made by Beres-
ford Hope to Mr.. Eccles led the latter
to make an offer for the bonds. before
his faith in Hope had been shattered by
the exposures by The Herald of the
methods of the gifted financier. At the
time Hope was buying" property right
and left, without regard for the cost,
and while he was promising to finance
gigantic dealers in which millions were
as common as drops of water In a sum-
mer shower. he won the confidence of
Mr.. Eccles, and advised him to buy these
bonds
To make it worth while for Mr.. Ec-
cles to load himself up with $400 900 worth
of the paper, Hope gave positive assur-
ance to Eccles that he would sell the
bonds to the "British-American Securities,
Limited, at an advance over the price
to be paid by Eccles. The two were to
divide the profits THE British Ameri-
can Securities, Limited. was a gigantic
corporation, which, as was shown by The
Herald, existed only in Hopes vivid i'm
agination. This imagination was so vivid
and picturesque that Hope displayed many
letters which he claimed to have re-
ceved from the company, but which in
reality were written at his dictation on
letterheads beautifully printed and en-
bossed in a local printery.
p EccIes Contracts for Bonds.
But Eccles had faith in Hope. He
viii m 90 70 ia Of
bonds, and purchased the block. So great
was his faith in Hope that he charitably
made bid that was higher than the
figure at which the bonds could be pur-
entire issue. The greater amount Of the
paper he received, the greater would be
his profits, Hope assured him.
Hope left for Boston Immediately aft
erward, with John A: Bagley, former at
torney general for Idaho. This trip was
to result in millions for Utah security
| holders, who were friends of Hope. The
"British-American Securities, Limited,
would grab the bonds like a hungry
trout after gray hackle. The price
would be no object. The "British-Ameri-
can Securities Limited" had announced
| policy of buying all the American in
dustrials that could be pried loose from
| their owners. and the bonds in question
| were the first on the list
| Mr. Eccies had given Hope an official
! letter of endorsement, he felt such great
| confidence in the daring financier. In
his mind there was no question but that
he and Hope would clean up between
! S35, coo and $4,000 by their little deal.
But the best laid plans o. mice and
men-sometimes go wrong. The Hope
bubble was burst by The Herald. Hope
| is now fugitive from justice.
Pay Demanded From EccIes.
Soon after the career of Hope was
made public the owners of the bonds be-
! came insistent that ,Eccles fulfill his
| agreement to buy. w f. Mitchell. attOr-
| ney for the holders of the securities, was
sent from Chicago to Utah to notify Mr..
Eccles that it was expected that he would
| keep his agreement and take the bonds at
| the price he had offered. AS an alterna-
| tive, it was threatened that suit would
be instituted.
AS the price offered by Mr.. EccIes is
reputed to have been one point above the
market price, Mr. Eccles demurred. He
/ naturally did not wish to lose nearly $40,
| coo as a result Of his too great confidence
in the promises Of Hope. His faith in
the Beresford Hope security-hungry
British American Securities, Limited,
| waned perceptibly.
Mr. Eccles maintained at first that he
! had not agreed to take the bonds, and
| that the matter had been misrepreSented
to him He declared that the parties
who had agreed to take the bonds" had
made inquiries from the trust company
| in New York who were the trustees hold
ing the paper and had learned that they
could get the bonds at SO, lower figure
than he had agreed to pay.
The attorney could not be moved. To
| Mr.. EccIes' appeals he hardened his
| heart like adamant and merely cited the
contract. He insisted that the contract
be carried out or he would institute suit
| at once.
EccIes Pleads for Time.
A plea was then made by Mr.. Eccles fol-
time in which to raise the money. II
! was no easy matter to secure nearly q
half-milion dollars on a days notice. Ar
extension was granted, with the under
standing forced upon Mr.. Eccies that un-
less he took the paper he would be the
defendant in a civil suit.
! The extension of time granted by tht
attorney expired Tuesday. Mr.. Eccles
| came to the terms of the attorney anC
took the bonds.
1t is understood that in the interva
| elapsing' between the exposure of Hope
and the blasting of his hopes. and the
taking over of the bonds, Mr.. Eccles sue
ceeded in placing part of the securities
thus throwing a part of the burden from
his own shoulders. If he was thus ena
bIed to get out whole it was not through
the aid and influence of one Beresfort
Hope, or the British American Securi
ties, Limited"