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THE WAR IN AMERICA. 4.

MINING COMPANY REVELATIONS.

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MINING COMPANY REVELATIONS. On Monday, John Jennings, Esq., F.S.S., director secretary, and shareholder of the North Carrock Mining Company, was summoned before Alderman Gabriel, at Guildhall, for unlawfully, and by means of false pretences, obtaining two dividend warrants for thfe respective sums of £.115 9s. lid. and £19 5s., and four bankers' cheques for the respective sums of X12 10s., £.17 8s. 3d., £.13 lis., and £214s. 9d., from Messrs. Newton, Keates, and Co., of Liverpool; and the summons further alleged that the defendant had not accounted for any portion of the value of the said securities. Mr. Lewis, jun., conducted the defence; Mr. Metcalfe the prosecution. Mr. Jesse John Tustin said I live at Barnet, in Hertfordshire, and carry on business as a chemical colour manufacturer, at 83, Upper Thames-street. I am one of the directors of the North Carrock Mining Company (Limited), which has been in operation about two years. The defendant was appointed secretary pro tem. on the 6th of February last. Mr. Lewis Secretar y pro tem And by the same resolution he was appointed a director also. Alderman Gabriel: This was not the first meeting of the directors ? Mr. Tustin: No sir. We were filling up the vacancies according to the rules. There was no subsequent appointment with regard to the secre- taryship, and nothing was mentioned in the resolution of the directors about salary but an arrangement was afterwards made by which the defendant re- ceived £5 per month. I acted as chairman of the company. The defendant acted as secretary before he was appointed, and the last payment made to him as salary was on the 11th of August last. On the 13th of the same month there was a board meeting, which was adjourned to the 14th, and the de- fendant was present on both days, and ulti- mately, after refusing to produce his books, left the meeting in consequence of the directors de- clining a proposal of his in connection with an addi- tional purchase which he wanted the board to make. I did not feel inclined to find the money for that purchase, and the company had no funds. I have not seen him since, but I have been informed by a clerk that on the 11th of September the defendant called at the office of No. 7, Tokenhouse-yard, and abstracted from a box certain books, and also took away with him a letter from Messrs. Newton, Keates, and Co. On the 21st of August, in conse- quence of defendant's absence, a letter was ad- dressed to him, requiring him to place all the com- pany's books, papers, and documents then in his possession under the control of the directors and upon his not complying with that requisition, they, on the 25th of August, took possession of the box, and then ascertained that some of the books hadbeen abstracted. The books, &c., missing were the banker's pass book and check book, the petty cash book, the articles of association, and the key of the common seal of the company. On the 28th of August a reso- lution was passed dismissing defendant from the secretaryship, but no notice of such resolution or dismissal was forwarded to the defendant. I knew where to find him. He sent a reply to the letter of the 21st of August, requiring him to give up the company's books* &c.; in which he explained the reason of his continued absence to be that the offices were to undergo repairs and to be repainted, and aa suon as the work was done he would return to his duties. On the 14th of August a Arm of tho name; of Newton, Keates, and Co., of Liverpool, were in- debted to the company in the amount of .6199 8s. lid. for lead supplied and the letter acknowledging the receipt of the securities to that amount and the re- ceipt are in the handwriting of and signed by the defendant. The indorsement on the cheque which has been cashed is also in the defendant's hand- writing. It has passed through the London and Westminster Bank. The defence set up was that the defendant had only secured himself by what he had done for a claim that he had on the company. Other evidence tended to prove that this was one of the many companies that are occasionally set forward to deceive the public. Names being used as directors and shareholders who have no shares, and mines said to be working which have no exist- ence. The result of the investigation will be gathered from Alderman Gabriel's remarks. Alderman Gabriel addressing the prosecutor, said:—Your prospectus states your capital to be £20,000, in £4,000 shares, of Y,5 each, deposit 5s. per share and 55s. on allotment. As there has been no allotment of shares upon which deposits have been paid, who were the shareholders who dis- missed the defendant from the board of directors? You sent out a prospectus to the public announcing persons as properly qualified directors. Would not the public be justified in coming to the conclusion that all these gentlemen held shares in the under- taking ? Witness: Certainly they would. Alderman Gabriel: Then do you not think it is a sham and a fraud upon the public to put forth such an announcement ? I do not hesitate to say that it is a sham and a fraud on your part towards the public to send out a book like this with a list of directors; totally unqualified according to the articles of your association. The whole thing, upon the face of it, is a fraud upon the public; and I should advise you, Mr. Tustin, to have a little more thought in future before you place yourself again in such an equivocal posi- tion. Really, the public ought to be obliged to you (tremendous- cheering and laughter) for bringing this matter forward, as a flagrant instance of the manner in which companies are got up by persons for the purpose of putting money into their own pockets. You have placed yourself in a most dis- graceful position, and I do not think it necessary to go any further into the case. I therefore dismiss the summons. Alderman Finnis said he quite concurred in the whole of Alderman Gabriel's remarks. The decision and the concluding remarks of the worthy aldermen weire received by a crowded court with such a burst of cheering and derisive laughter as is seldom heard within the precincts of a court of justice, amidst which the defendant and his counsel quitted the court. «

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