THE HOOLEY SCANDALS.

Otago Witness, Issue 2325, 22 September 1898, Page 44

THE HOOLEY SCANDALS.

SEOEETS OF THE BKIBING. PAYING FOE TITLES. (London Correspondent of the Argus.) LONDON, July 28. THE BEGINNING. Mr E. T. Hooley has been giving some interesting revelations on the modern methods of company promotion. The occasion was his appearance in the London Bankruptcy Court, on July 27. Mr Hooley's accounts, as reported upon by the Official Receiver, do not appear to be in a very complete condition, and many proofs have been tendered which the bankrupt repudiates. Tho gross debts are set down at £1,549,071, of which £407,863 are unsecured; the assets are £369,763. Mr Hooley began business -with £20,000, given to him by his father, with whom he went into business as a lace manufacturer, near Nottingham. In 1895, when he started business as a stock broker, he was possessed of £150,000. Since the spring of 1896 he has been engaged as a company promoter, and the inquiries in bankruptcy chiefly relate to his transaction since that date. Mr Hooley attributed his failure to Mr Bainbridge, M.P. That gentleman undertook to find £100,000 in connection with the Dunlop Company, on' condition of receiving 400,000 shares, stating that he would get the money from Sir J. Blundell Maple ; but, as a matter of fact, said Mr Hooley, he did not provide a single penny. An arbitration award for £100,000 was given against the bankrupt in favour of Mr Bainbridge, and that gentleman threatened to make Hoolay bankrupt unless he gave him a charge on certain securities held by Lloyd'? Bank. That bank had allowed Mr Hooley an overdraft to the extent of £750,000, which was reduced to £100,000. Bankrupt gave Mr Bainbridge the charge he asked for, but the latter immediately gave notice of tho same to the bank, who thereupon refused to honour any of the bankrupt's cheques. In September, 1895, he became acquainted with Mr Rucker, a cycle rider and" cycle agent. They entered into partnership, without any written agreement, bankrupt to find all the capital, and Rucker to introduce cycle business. Between September, 1695, and September, 1896, he paid Rucker £166,61-B.' After that there was a settlement ; Rucker received £150,000, and left £100,000 in the businesa, and agreed to lake one-fourth of the profits instead, of one-half. Bankrupt promoted the Simpson-Lever Chain Companies^ English and foreign. Two of the directors of the English company were Mr Mundy and Mr Burkinshaw. He sold Mr Mundy 20,000 pound shares for £5000 cash, and Mr Burkinshaw a similar number for £10,000 cash. TUB DUNLOP FLOAT. EXIR-'i ORDINARY OPERATION^. Tho first company he pr.omotejl on coming to London was the Dunlop ; inie purchase price* was £3,000,000, and the sale price £5,000,000, the transaction gave a gross profit of £1,700,000. Bankrupt prepared the prospectus. He always thought the first page of a prospectus its most important part. Ho was entirely responsible for the front page of the Dunlop arospeotus. Yielding to pressure, Mr.

Hooley admitted that he gave Lord De la Warr £25,000 in cash for coming on the Dunlop board as chairman ; the Duke of Somerset had nothing; Lord Albemarle had £12;§Q0; Lloyd's Bank and the Bank of Ireland got nothing; but the solicitors got Mr Purchase £20,000, Mr Ashwell £10,000, and £9800 costs ; the brokers £2000 for allowing their names to appear on the prospectus. The names on the front page of the document cost him between .£90,000 and £100,000. He gave the solicitors special fees because they did a deal of work, tho business was a going concern; it was a good one, -and he thought the solicitors were entitled to have the fee he gave them. When forming the company 387,000 shares were underwritten for 10s a share; they were a firm purchase, and bankrupt had to buy in the open market in order to meet them, at 25s and 27s 6d, a share, involving a cost of £475,000. Among some of the other payments of this company were J. and B. Horton, £10,250; Mr Dv Cross, also for share of profits, upon everything connected with the company, £215,000. One way and another the gross profit of £1,700,000 was reduced to £387,000, vhioh bankrupt divided with Rucker.