THE ROMANCE OF SPECULATION.

Wellington Independent, Volume XX, Issue 22, 17 June 1865, Page 5

THE ROMANCE OF SPECULATION.

(From the Afoney Market Review.) The story of tlie origin, of the "Aberaman Ironworks Company," as recently told in the Court of Queen's Bench, besides being curious and interesting, is full of suggestive information for the public at large. .Before we come to the action of this drama, we suppose wo must introduce and describe the dramritis\personce, Mr Wickcns is a solicitor, practising in Tokenliouac-yard, with a keen eye to speculative investments elsewhere ; Mr ]?olch, a " private gentleman," with an itching for public companies and promotionmoney ; Captain Antrobus, was formerly an officer in the 2nd Dragoons, then a coal and mine proprietor in Yorkshire, and is now a a financial agent. Mr Hughson, according to Captain Antrobus, was formerly an attorney at Edinburgh, but according to his owu account of himself, he " has been a financial commission agent for the last 20 years." In 1845 he had offices in Edinburgh. In 18G2 he came to " London and became an attorney's clerk, at three guineas a week." He modestly denied having been engaged as a " detective" in the infamous ease of Mr and Mrs Windham, but he admitted that he was employed for seven months in going to the Haymarket night after night to watch Mrs Windham, and gave instructions to the detective engaged in the case. In answer to the Lord Chief Justice, he said lie went to the Haymarket to watch Mrs Windham's cross proceedings, and to protect Mr Windham against them — that is, as he further explained, to prevent Mr Windham condoning his wife's offences " by keeping him away from his wife." The reader might suppose that this was not a vocation favorable to the financial genius and ability of an experienced financial agent, but he would be mistaken if he did. One part of his employment was to " treat the ladies at Barnes's, when he went to the Haymarket of a night — ladies who were useful to Mr Windham for giving inibrmasion as to the whereabouts of his wife" — and this, no doubt, involved considerable expenditure, and numerous if not very extensive " financial operations." To complete Hughson's story, we may as well add that he was under the lamentable necessity of suing Mr Wiudham for the £-100 expenses he had been " put to" in this honorable vocation ; that he lost his action ; that lie ought to have paid the costs, but did not, and look the benefit of the Bankruptcy Act instead ; and, finally, that " there was no dividend" — the lawyers (all, those rascally ]aw3 r ers !) had it all, and Mr Hughsou " afterwards started afresh." Such being the chief actors in this speculative drama, let us now glance at the parts they respectively played in it. Mr Crawsliay Bailey agrees to sell his estate and ironworks to Mr Wickens, and Mr Wickens agrees to purchase them for £250,000. We are not to suppose that Mr Wickens intended to abandon the law, and become a great landowner and iron-master in South Wales, or that he intended to invest so lai'ge a portion of his own funds in this purchase, for it does not appear that Mr Wickens contemplated any such thing. His purpose was to buy the property from Mr Bailey for £250,000 and to sell it again to a joint-stock company for £350,000, which would leave him the rather handsome profit of £100,000 for his trouble and expenses in the little affair. This, if it coidd only be accomplished, would certainly ' be an improvement upon the routine practice ! of the attorney's office, and infinitely better ; than the slow accumulations of six-and-eight- . ponces and three-and-fourponces from ordi-

' nary clients, however numerous or litigious they might be. In order that it might be accomplished, Mr Wickens associated himself with Mr Folch, the " private gentleman,'j 1 and they mutually agree to become the joint promoters of the intended joint-stock company, and joint participators in the profits to be made out of it. But, first and foremost, there was a deposit of £10,000 to be paid to ; Mr Bailey, and as neither Mr Wickens nor ■ Mr Folch had available resources equal to that demand, it must be " raised somehow." That required a " financial operation," and financial operations necessarily l'equire financial agents, and forthwith Messrs Antrobus and Hughson stepped upon the scene. Mr Folch had known Captain Antrobus five or six years, as a person engaged in financial transactions, and,- meeting the captain in the city, explained to him what they required. They had already been trying, through some third party, to get £10,000 for the deposit from Messrs Barclay and Co., but this third party, whose modest name did not transpire, wanted £75,000 out of the £100,000 profit, as his remuneration for getting the £10,000, and to leave the remaining £25,000 only for Messrs Wickens and Folch. This the latter gentlemen evidently thought unreasonable ; and perhaps it was rather so. Even the Lord Chief Justice, who in his day has seen some practice, and had no little experience in such matter, could not help exclaiming that" these revelations were really startling." Mr Folch explained that they were willing to give £5,000 for the advauceof the £10,000 for six months ; " but," said the captain, " I said that was not sufficient, and that £10,000 at least would be required for the advance." '■ That, said the Chief Justice, " would be 100 per cent." " That," said Mr Hawkins, " would be 200 per cent, for it was 100 per cent for six months." But Mr Folch nevertheless, agreed to pay that amount. Besides this deposit, however, there was another financial operation to be achieved. The promoters were anxious that the company should come out with 10,000 shares already taken up ; " because" said Captain Antrobus, "it would naturally look better before the public with 10,000 shares taken up." Mr Folch thought " theh could do 2,000 shares, if Captain Antrobus could do the rest," and this the captain thought he could do. And now we come to another important actor iv the drama. Captain Antrobus mentioned the matter to his intimate friend Mr Hughson, and Mr Hughson shortly after-, wards introduced him to his friend, Mr* Logan, the mansger of the London Bank of Scotland. Mr Logan seems to have stipulated that, if his bank advanced the money, they should have the account of the company, and that three of the directors of the bank should be placed on the direction of the company, and for this honorable distinction he selected Mr Cargill, M.P., Sir D. Hay, M.P., and Mr Collins. Upon this understanding, although there was a groat deal of " off and on negotiation" the feank appears to have arranged to advauce the whole or part of the £10,000 ior deposit, and of the £8,000 for the 8,000 shares, for which they were to receive £8,000 bonus. And Mr Folch at last appear to have agreed that Antrobus and Hughson should have two sums of £5,000 each for procuring somebody to advance the £10,000 and the £8,000. But in the meantime, Mr Logan had ascertained the amounts the promoters were to make by these transactions, and he then found that a bonus of £8,000 was not enough for the advance of £8,000 on the shares, and wanted £16,000 for making that advance ! At the mention of these astounding facts and figares the judicial wig of tho Lord Chief Justice was seen to be slowly rising above his judicial head, and his lordship was constrained to explain this remarkable phenomenon by gravely telling tho court that " these revelations actually make one's hair stand on end ;" on whioh the learned counsel, feeling his own horsehair rising, gravely replied, " indeed they do, my lord. But even this was not the cud Mr Logan's insatiable demands, for on the 10th Juue ho wrote a letter stating that a " larger bonus than £10,000 would be required for the adance of the £10,000 than merely double that amount, but that the k16,000 could be settled as arranged." Mr Wickens appears to have been party and privy to these arrangements with the London Bank of Scotland, but to have sedulously avoided any contact or intercourse with Messrs Antrobus and Hughson, which might have committed him to the arrangements mado with them by his co-promoter, Mr Folch. What the bank ultimately advanced in tkeso transactions, and what they made by their advances, we do not know, and do not care to inquire. At the last moment it seems the bank declined doing anything, but Mr Wilkinson, their solicitor, at the same moment came forward and did everything that was necessary. Messrs Wickens and Folcli repudiated their engagements to Messrs Antrobus and Hughson, and therefore Messrs Antrobus and Hughson jointly sued Messrs Wickens and Folcb. for the recovery of the two sums of £5,00J each, which they had agreed to pay them. All the agreement they could prove, however, was with Mr Folcli alone, aud did not inclnde Mr Wickens, and they could not prove that the arrangement they had made with the London Bank of Scotland had been carried out, for it seema to have been carried out through their solicitor, Mr Wilkinson. The jury found that the agreements alleged had been niade, but not with both parties, and so the plaintiffs lost their action, and the other parties " got off." Wo can have no sympathy with either ono party or tho other, for neither of them merit any. But we beg to toll Mr Logan and the directors of tho London Bank of Scotland, that such transactions, however profitable they may be, are not banking transactions, and do not fall within the legitimate province of joint stock or an} 1 " other banks, and that the transactions disclosed in this trial are thoroughly discreditable to each and every one, without any exception, of the parties concerned in them.