A COSTLY PROMOTION.

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

A COSTLY PROMOTION.

The Singer Cycle Company was founded upon similar lines to those already explained. The old company was bought for £543,000, and sold for £750,000, leaving a gross profit of £207,000. He paid Mr Singer £10,000, as already explained. He paid Lord De la Warr £2000 for introducing Lord Greville as a director ; he paid Lord Deerhural £2000 for introducing Lord Ashburton. He did not pay Lord Warwick anything for acting as chairman, but there was a sum of £5000 paid to Mr Nocton, Lord Warwick's solicitor, for something on the front page of the prospectus. When pressed, _bankrupt said he did not remember whether Liord Warwick had anything or not. He paid Lord Norbury £1000 for an introduction to him. The solicitors, Purchase and Ashwell, received £10,193, but he did not know how much was for fee and how much for costs. He believed they had £5000 apiece for fees. Messrs Craig and Gardiner had £300 for going on tie prospectus ac auditors. As in other cases, the bankrupt had paid these special fees to influential directors to go on the beard because he could net otherwise secure their names. The payments were out of bankrupt's profits, and were not disclosed. He gave £20,000 to Mr Clay, a Dublin solicitor, for introducing the business ; it was in the shape of a commission for the option. A man named Rhodes claimed the option, and bankrupt had to give him £1000 to keep him quiet. Mr Nooton was solicitor to Lord Ashburton and Lord Warwick. They would not have gone on the board without Nocton's consent, and he probably promised Nocton £5000 on condition that ha got those two name 3. Lloyd's Bank did the olerical work for the Singer Company, and charged £7116. Mr Broadley received £1250 for the "press boom," and ths Mr Beall previously referred to also received £1476. Mr Dv Cros was bankrupt 8 partner in the Singer Company, and received £48,000 profit. Bankrupt received £50,000. HOOLEYISING BOVRIL— A STUPENDOUS AFFAIR. ! The Bovril Company was promoted in No- ' vember, 1896. Bankrupt paid £2,000,000 for ' the old company and £32,000 to compensato the old directors, who were receiving commission besides their fees. He sold the company for £2,500,000, making a profit of £463,000. He did not giveanything to Lord i Playfair to continue as chairman of the new ! company, as he had been arranged for under the sum of £32,000 to the old directors. Nor did he pay anything to the Duke of Somerset ; but he paid something to Lord De la Warr, though he could not remember, how much. Ho paid the vice-chairman £50,000. He paid Mr Ashwell, the solicitor, £10,000 for going on the prospectus. Bankrupt paid Mr Kirby, of the Financial Post, £1000 to keep quiet and say nothing about tho company. v A Mr M'Conochie received £5000 for introducing Mr F. Gordon, of the Johannis Company, and Gordon received. £sooo for introducing Lord Duncannon. Mr Ross, the manager of Black and White, and Mr Currie, manager of Bovril, virtually introduced the business to bankrupt. They asked for more than £22,500 between them, but in the end bankrupt gave Ross £10,000 and Currie £12,500. Harry Marks received £10,000 as a "call on shares, ' not to keep the Financial News sweet. Bankrupt paid E. Boall £2000. In this case that sum was absolute blackmail. The issue of the deferred shares of this company, had proved a failure. Lawson, Johnson, and Walker, the chairman and vice-chairman of the old company, said they must have £35,000 out of the venture. The old company only paid 2£ per cent, on the deferred shares, but to increase the confidence of the public, who would not be likely to subscribe for them when 8 per cent, had been paid for ordinaries, Johnson and Walker announced in the prospectus that they would take up 40,000 deferred shares. When it came to the point they would not do so, and they made bankrupt pay them £25,000 to keep them. He ; had given a written promise to take these j shares when Johnson and Walker had signed. The Registrar suggested that that looked like an attempt to defraud the public. Mr Hooley answered that he had not deceived the public, for they had not taken up the deferred shares. In this company the bankrupt made sales at a discount representing £385,000, and to deliver those shares it cost him £622,500. Mr Dv Cros was his only partner in Bovril. He paid bankrupt £100,000 before promotion for half the profits, and bankrupt handed him £115,008. Johnson and Walker got £65,000 1 and £55,000 from bankrupt, making £120,000 in all. Bankrupt's profit on the deal was £30,000, less office expenses.