THE AUSTRALIAN AND EASTERN NAVIGATION COMPANY'S SWINDLE.

Southland Times, Volume I, Issue 9, 21 June 1864, Page 3

THE AUSTRALIAN AND EASTERN NAVIGATION COMPANY'S SWINDLE.

Some months ago it was announced that the Black Ball, Eagle, and White .Star lings of Australian Packets were to amalgamated under the above title. The following exp ose of the , business is taken from the letter of the London correspondent of the Melbourne Argus. Writing on the 26th March, he says : — * •-> "A flagrant illustration of the nefarious manner in wliich sbme gigantic enterprises are prostituted to the dishonest advantage of directors and schemers, has ' been prominently before the public during the whole of the past month; and asr it is a sub-, ject in which Australia is directly interested, I shall go considerably into the details of the case. It will be remembered that some eight weeks ago a project was started, under the title of the Australian and Eastern Navigation- Company, which, the prospectus stated, was to be formed on the basis of an amalgamation of the Black Ball, Eagle, and White Star lines of packets. That turns out to have been a dishonest pretence ; but let that pass. The capital of the company was £2,000,000 in 40,000 shares ! of; each. Lured by the terms of th 6 prospedtus, and the array of respectable names paraded, ;the Ypnbli<_, Yeageii^jsubscx'ibed toVabout four times, the amount: of 'the eapitaly : and after considerable delay tho ! shares ''wfero allotted. But iho thing was 'too good /t o' lie^thrown away oh tho common crow^ V 4 comfortable" private arangement, was fleeted, by which tho lion's "shave of Ao' speculation

was to be monopolized by the promotjrs anjd their 'allies/ ■■ : wHile ? tlife**^-apm^*fei3irs welre to be soothed with ' letters o£r_ gret; -'-■- A large proportion ;; pf, j;he 0 40 jG^-;s|iares ? ?r - --wer e; appropriated^ iby Itlie; direetpj^and ■ I • their friends', and measurOs"' were taken to"; Y> ' right mar]iet, ,!^nd^fitv up theYriremiuiii ''/.- }■ * to '■■ unprececUjii^^ meantime, a number of jippUcant^ ! shares, in expectation of^anallotme^/^pldy J them on thei Stock^BxcKarigb'sat-iitWo; and ' ou 'three premium ; !r bdt beirig ;afterw : a.t'db^dtsii I •appointed iii tlie numbfer ! aUStife'd/ 'and tliei - -s! price in the m r arl_et%a^ng%eShftiACupto eigjit and nine~;perTshare.ippeinium, tney foifndi;hemselves-unableto-fulfil-their-Gon»-. — 'tracts as tKendayk>f .settl§^ Without submitting to heavy losses, and in s6me cases ruinlo; iThenoitjibjegan to bo whispered about that- disreputable pralctices' had.YbeonYtes { o^ 'natjors of.the company, and the unfortunate bbairsYgot up' ari. indictment Yagaijastjlbho f r direet'ors^arid applied* tO ther committ^ of Ifi -the; ■StdclrEi^nttg^'tdT^ in the shares of the company:.' ylteiepm&ny years since any affair ef%heKmdha_'<iaused sp much excitement. A poyS; e^ftU^ deputation- attended from Li^ei'pppl. chdster to support the Ypetifeioiii> The invpstigatipn h^,s extended eveti thefgreater part ef the mprith, and the decisipri Si -vyaa issued pnly three days ago. The'S Committee resolved unanimously tliat there should be np settlement:* ' "This decision caricels all past Healings^ arid* it 1 is^likely that front the extreme unpopula^ity-ipf^he company in tho market, the shares will -no longer be negotiable.- Many -parties interested in the affair storigly insist on the: dissolution of the present undertaking, and its reorganisation 'deni)vo. At a meeting ofthe directors~,aTew„days since, it was notified that any , diss^tient sliare^^ holder may receive back his deposit money of £2 per share at any -time; ! "withput deduction.