Wairarapa Standard Published Tri-weekly, Price 1d. FRIDAY, FEBRUARY 27, 1885. The "Smart Man" of the Colony.

Wairarapa Standard, Volume XVIII, Issue 1679, 27 February 1885, Page 2

Wairarapa Standard Published Tri-weekly, Price Id. FRIDAY, FEBRUARY 27, 1885. The "Smart Man" of the Colony.

A little time back we referred to the charges made against Sir Julius Vogel by the shareholders of The Consolidated Telephone Company, and to the letter published in the iNew Zealand Herald by the former, in explanation and reply. It will be remembered that in the letter in question, Sir Julius Vogel made a lame and unsatisfactory defence to the grave accusations brought forward against him. The actual facts of the case are now being brought to light, and we propose to state them here in a fair and impartial way. These facts are set forth at length in the Statist, a monetary journal of high standing, published in London. Brom that source it can be gathered that in May last the shareholders of the Telephone Company, being dissatisfied with the management, appointed a committee of investigation to enquire into the affairs of the Company. This committee reported shortly afterwards, making grave charges against the directors, in consequence of which they resigned. Later on the com mittee issued a supplementary report, in which its former charges are re iterated and made more clear and specific. The principal allegation is that several of the directors allotted to themselves shares largely in excess of the numbers applied for, because between the date of application and the date of allotment the shares had gone to a premium, and consequently that those directors enriched themselves to the detriment of the Company. As to the case affecting Sir Julius Vogel, the committee report that he allotted to himself 3830 shares, and ior the balance of the 15,000 shares (alluded to in the former report) he handed the secretary a list of nominees. This list was, unfortunately, handed back to Sir Julius after the shares had been placed in the nominees’ names, so that no record is left of the parties receiving the shares. Some of the other directors also allotted large numbers of shares to themselves and their nominees, hut Sir Julius Vogel appears to have made about the greatest haul of the lot. The dealings of Sir Julius Vogel in getting hold of these shares are of a dubious and complicated character. It seems that in the first place he sent in a written application for 1000 shares, In the allotment register this 1000 was altered to £SOOO, aud 3330 shares allotted to him. The original letter of application was not altered, nor was any further written application made by Sir Julius Vogel, On December 2nd, 1881, the directors declared a dividend and afterwards two further dividends were declared, the 1 a;s■ being on June 10, 1882. Sir Julius Vogel sold the creator portion of his shares between December 1881 and Juno 1882, the prices then ruling at au excellent premium. Sir Julius Vogel therefore contrived to get rid of his large allotment of shares at a capital profit, pocketed the money with great satisfaction, and cleared out of the Company, which never afterwards paid any more dividends, and ultimately involved its unfortunate shareholders in heavy pecuniary losses. It seems that the committee of shareholders next took the opinion of counsel ns to whether the profits pocketed by Sir Julius Vogel through the sale of bis shares, could be recovered from him. Counsel advised that Sir Julius could be compelled, by legal proceedings, to disgorge those profits, and| some time back it was stated in a cable message that the necessary action had been taken against him in the Law Courts. We must therefore await the further

dcv< ; meat of these to sco how the affair will end. liefer ring to tliis action against Sir Julius Yogel, the Statist remarkslt is desirable that an opportunity should be afforded to a gentleman who, like Sir Julius Vogel, holds high office under the Crown, to vindicate his character —if he can. On the other hand, it is equally desirable, if he cannot, that the shareholders should recover the money they are entitled to.”

We do not venture to anticipate what will be the result of these legal proceedings against Sir Julius Yogel. The law does not always deal out right and justice. But whatever be the outcome of this business, one or two things concerning Sir Julius Vogel have been made absolutely clear to the mind so fall honorable and right-thinking men in this colony. It has been proved that Sir Julius Yogel, by dexterous manoeuvring, contrived to get a very large number of shares in this Telephone Company allotted to him ; that he sold those shares at a considerable profit, and that he thus got clear of the unfortunate undertaking with a pocketful of money, leaving the other shareholders' to bear all the disasters, difficulties and losses which the Company had afterwards to encoun--ter. In some parts of the United States, such conduct would entitle Sir Julius Vogel to honor and recognition as “a smart man.” In New Zealand the honest folks have not yet been educated up to the point of appreciating and applauding this sort of “ smartness.” At any rate, fair dealing and honorable men will feel inclined to doubt whether the possession of such “ smartness ” forms a high recommendation in the character of a public man who holds the important office of Colonial Trea surer, and who is moreover the real head of the Ministry which now controls the affairs of this colony. If Sir Julius Yogel possessed any adequate sense of what is due to the honor and good name of the colony, he would resign his position in the Ministry, and his seat in Parliament, pending the investigation of the grave charges which have been made against him.