An Echo of the Enever Affair: Alleged Misrepresentation to Lieut.-General Sit Charles Kavanagh In the King's Bench Division 02
For the defence, Mr. Greaves December 11 the Lord Chief Justice Lord said he was faced with this: and a. special jury-heard an action that General Kavanagh had signed by Messrs. Humphrey, Denman the form asking for the allotment %o., La, (in liquidation), of Shaftes-of 2,000 shares, but it might very bury Avenue, W,, against Lieut well'be that such a document was General Sir Chatles T. M, Kava-signed and that it should only be nagh, of 127 Piccadilly, W. The used under particular circumstances, claim was for £1,750 for unpaid He was determined that he would calls on shaves, and also for dane buy no shares until he had been ages for alleged breach of agree-to China with an impartial engineer ment. The defence: was a denial to view the mines, and it was on hat the money was due or that that understanding that he signed there had been a breach of agree-the demand for shares and paid ment, while General Kavanagh £230 for the option to buy them. vounterelaimed for damages for al-Tlowever, he visited China, and he leged fraud, came to' the conclu; Appearing for the plaintiff com-whole thing seemed a pany, Sergeant Sullivan, K.c., raid also ascertained that the whole of nis clients had an interest in certain the titles to the properties could'
In China, and Lieut.-General unenforceable if the Chinese signa-ugh purchased 2,000 £1 shares: tory refused to stand by his word. 1 the company, paying £250 on al-General Kavanagh said that he tment. He was put on the bourd knew nothing of his alleged ap directors, but now had refused to ment as a director of the company. pay £1,750. that remained due.
When he heard of it he described Lieut-General Kavanagh, said "great check." He wrote from counsel, for some extraordinary rea China protesting against it. Enever won had raised the defence that he plied that if he liked to leave the had been misled into the whole busi-sinking ship he could do so. ness, alleging fraud on the part of The Lord Chief Justice—And a Mr. Enever, the plaintiff enn-shortly afterwards Enever got three vany"s agent, and he asked that his years? penal servitude for false pre-ame should be struck off the regist-of the company's shareholders. ud that he should have his £250 Mr. Greaves-Lord,—For obtaining yock, In fact, proceeded counsel, £23,000, the story was' one of a gentleman General Kavanagh added that he who allowed himself to be mailed was quite willing to fulfil his con-nto a state of great suspicion, with ditional contract to buy the shares, hho result. that he made allegations but when he was in China he sairist all and sundry and brought.
Yealized that he had been sent on bout the ruin of the company. A 8 fool's errand.
Colonel McTaggart also put up a Cross-examined by Mr. Melville, arge sum of money, and an agree-eral Kavanagh said that he sign: ment was arrived ut by which, need the contract to purchase the companied by Mr, Grant, the com-shares because he thought that yarly's experienced engineer, Gen-never wax an honest man, Kavanagh should go to' China and report on the mines, He was the Lord Chief Justice.—Other-raid £250 as a half-year's velary wise you would have had nothing ind £500 first-class expenses. How-to do with it?—OF course not. ver, instend of waiting for Mr.
Br, Melville-—You thought that Grant, General Kavamegh' went you were coming to an arrangement alone to the mines, and it was not with Enever that he might use your ong before he began denouncing name to give people confidence in what he said was a fraudulent com: the company?—Certainly not. puny with disastrous results for the which had to go. into Inquiries in Shanghai General Kavanagh went on to say that when he got to Shanghai he Liquidator Examined made inquiries about Mr. Grant, the Mr. W. L. Bishop, the liquidator company's engineer, and the results of the' plaintiff company, was cross.
Were not altogether satisfactory. examined by Mr. Greaves Lord, He telegraphed home for an addi-K.c., for the defendant, about a Mr. tional £300, as he intended to con-Enever, who, the defendant alleged, ult an independent engineer. He misled him about the compuny's al waited sufficiently long for an an-fairs. Counsel asked witness wh swer to be sent, and he then resher Enever was not a director of turned to England, the company, and wns he not pro-Mr. Greaves-Lord said that ax it ecuted in connexion with his deal-was now admitted that General ngs with shareholders of this com-Kavanagh's signature to the a pany and sentenced to three lication penal servitude?—Mr. Bishop been obtained by fraud he wodtd ppm forthe shares had ¢ould not say. not call a large number of witnessen Mr. Greaves Lord said he would which he had to the issue of fraud. contend that this was part of a After a short discussion between, system of fraud not to exploit jcounscl the case was withdrawn nines in China, but to get money or Enever. from the jury.
Mr. Grenves-Lord, addressing his Colonel MeTaggar: said General Lordship, said that a contract to favanazh told him that he had take shaves required a communicated sought 2,900 shares, and it was not faceeptanee by the company. The fact that he said' that he was to allotment must be communicated to vay the shares after he had. scon the shareholder. There was never he mines and had an expert's opi any communication by the plaintiff on on them. The Anglo-Chinese company to General Kavanagh that Trust was to raise money by. gold iny shares had been allotted to him. yonds for the purpose of assisting ven if the directors of the company 'a the financing of the mines, but had allotted the shares to General hose bonds were never issued, Kavanagh in ignorance of the eon-Mr. Greaves Lord said the condition attaching to the form of apmention war that the Anglo-Chinese plication, the fraud of Enever, the Trust had the bank, " debt company's agent, became the fraud 5,000 and other liabilities for of the company, and it could not 40,000. Counsel added that, the benefit by it. "To render General defence was that the whole thing Kavanagh liable to the company vas a swindle by Enevor to get there must have been a contracting snoney out of people, and that mind between him and the com-General Kavanagh's name was used Pany—re International Society of 9 influence other people to invest.
Auctioneers and Valuers ({1898)] 1 Colonel McTaggart said but for Eh., 110)—and there war none. he rumours spread by General General Kavanagh were a director Savanagh the mines would have he was entitled to be present at the Seen finanew, and probably been meeting at which his shares were successful, said to have been allotted, but he Sergeant Sullivan said he was received no notice of it," and he to admit' that General could not be bound by what was favanagh was induced to take/done at a meeting which had been hares by the fraud of Enever, but convened with gross irregularity, he question was—would that avail General Kavanagh, by handing the the defendant in view of the cireum- application form to Enever, did not stanees and what he ultimately did? make him his agent.. Business
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