The Richmond palladium and sun-telegram. [volume] (Richmond, Ind.) 1907-1939, 1921-02-23

taker Wright said, and people will put
their money in, who never would have
otherwise. He got the idea in Amer
lea, and tried it out there, but to no
profit. For it to work, as he after
wards found, it wanted the conserva-
tive investors and brokers' of Eng
land.
He found London waiting for him
and his idea in 1894. The whole
country was astire with the news of
the gold discoveries in West Australia.
Hitherto, the mines had been worked
by local capital, but the fields had not
become so extensive that London was
being asked to finance both old and
new ventures. But money for them
could only be got at price. Many
people would not subscribe to a min
ing venture, holding it too much of a
gamble, nor would old fashioned brok-
ers deal in it's stock. Moreover, for
the same reason, banks would not ad-
vance a loan on the security of such
scrip.
This attitude gave Mr.. Wright his
opportunity. He floated the West Aus
trialian Exploring and Finance cor
poration. With it he proved his the.
DRY was correct. Though formed to
assist in the promotion of mining ven,
lures he had no difficulty in getting
the money for it from the most con,
sentative investors. Nor, he found
was there any bank or broker who
hesitated to accept its scrip.
In a short time the exploring com
pany was so we'll regarded by high fl
nance, that Mr.. Wright thought it
time to float another like it. This he
cealled the London & Glove Finance
corporation, and it had still greater
success. 1t promoted the Lake View
mine with a capital of $1,000,O00. Here
luck helped Mr.. Wright, for the mine
promised to be one of the richest IN
the world, producing $4,000 worth OF
gold a month. The mines success
helped him, as well as building up the
reputation of his finance corporation
for he was always careful to reserve
for himself a large quantity of shares
in the companies f1oated.
Mr.. Wright now felt he was able to
satisfy all the tastes Of his nature. HE
hired a palatial office and gave the
most lavish entertainments in the
west end. He bought yacht. rae
| ing stable and mansion in Surrey
Soon the stock of the London & Globe
| had risen 100 percent. Everywhere he
was being talked of as the rising fl
nancier..
He now felt it again time to floa
the London & Globe corporation NO.
This took in the other two companies
under Mr.. Wright's terms of amalga
nation, he being allotted 6O5,0Ol
shares out of the capital of $10,OOO,0OO
Few enterprises of the day coulc
have got the public support it did
Subscribers rushed to the office, ant
allotments of shares were dealt GU
as favors. In a few days the disap
pointed were turned away to bu!
shares on the market at high prem
| iums.
Mr.. Wright so manipulated thu
market that soon the stock was sell
ing at hgh price. Holders who nov
sold made fortunes. Mr.. Wrlshts en-
| tertainments grew still more laVlsh
People wondered how he could tak'
his losses on the race-cOurse so calm
ly.
| He now went in for extravagant pro
motions as well as extravagant living
The London & Globe floated anothe
new finance company. The British
American coproation-with a capita
of S7,500,0O0, the promoter settln'
100000 free shares. This new con
Germs first venture was to acqulr'
some mining options in British Colum
bia. A mine in working order wa
also purchased for s3,7oo,ooo. But tn
promoters were not too busy Will
other schemes to trouble about tn
operations and the mines output a
once decreased. Although there wa
not suspicion at the time, there is lit
tie doubt that some of the money sub
scribed was spent on the mine.
/ Soon the profits which had TIL nov
been good, disappeared altogether
| There was an inquiry over this, blu
Mr.. Wright was soon assuring tn
shareholders that good dividends coul'
be expected in the future.
Perhaps it would have gone as n
said. only just then it was found tina
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