The money thus obtained was liberally spent. The promoters kept carriage-horses and saddle-horses; servants in gorgeous liveries waited on them; they fared, like Dives, sumptuously every day. One of the directors lived in the house in Baker Street, and being of a convivial character, astonished that quiet street with gay parties, lighted rooms, musical soirées, and expensive dinners. His wine was rare and recherché, his cook was sufficiently good for his guests, and he found himself surrounded by the first people of this lively locality. But there were very dark rumours afloat, which should have made men hesitate before they gave this fellow their countenance. By 1839, there was a general feeling that there was something wrong; Mr. Barber Beaumont wrote a letter to the “Times” about it; and had it not been for the wonderful boldness of the adventurers, they must have broken up long before. It was known that they had thrown a difficulty in the way of paying some annuities in the country; and that, without any justice, they had refused to discharge a fire insurance which had become due. Still what is every one’s business is nobody’s business, and they had hedged themselves with such a conventional respectability, they looked so grave, they talked so properly, and they gave such good dinners, that it was long before they were compelled to yield. So great was their prestige, that though one of their victims came fierce and furious, and bearded them in their own house, and before the very faces of their friends—though he told the party assembled that he was swindled, and their hosts were the swindlers,—it produced no effect, and he was absolutely obliged to leave the place for fear of personal violence. In addition to the dinners which they gave their friends, they had small pleasant parties of their own, with toasts sardonically applicable to themselves, the first standing sentiment being in mocking, reckless contempt,—
“An honest man’s the noblest work of God!”
The unpleasant rumours continuing to spread very rapidly, it became desirable to procure a director with something like respectability attached to his name; so Mr. Knowles wrote to Sir John Rae Reid, Governor of the Bank of England, stating, that as he was a native of Dover he could assist Sir John with his constituents, provided that gentleman would give his name as director to the falling establishment. The only reply was a contemptuous refusal, and an unceremonious request that Mr. Knowles would withdraw the accounts of the West Middlesex from the custody of the Bank.
In the mean time the established institutions looked on in wonder, asking themselves when this bold violation of probity would cease. It was certain that, so long as the new office could procure money from the public, they would continue to do so. There was no law, indeed, which could touch them; and when some of their victims hesitated at continuing their payments, the following specious letter was written by the agent whom the gang at Baker Street had found means to blind:—
“I have been to London purposely to examine the affairs of this society, and I can assure you the reports issued against them are wholly without foundation; the principal part of them are gentlemen living on their own property. The following is the result of my investigation, which must surely satisfy the mind of any person as to their respectability:—63,000l. in the Bank of England to meet emergencies; 160,000l. on mortgage property in London, at 7 per cent. and 8 per cent.; 40,000l. on reversionary property; 120,000l. on different funded securities; 3000l. in the Bank of Scotland; 30,000l. on mortgage security in that country; 3000l. in the Bank of Ireland; 10,000l. on landed security in that country; and their paid-up capital is 375,000l.”
But even this brilliant array of securities failed at last in its effect, and it was left to the shrewdness and daring of a Scottish gentleman to encounter single-handed, this most unprincipled combination. Among those who had entered into transactions with the Glasgow branch was Mr. Peter Mackenzie, editor of the “Scottish Reformers’ Gazette,” whose attention became naturally drawn to a question which involved the happiness or misery of a great number of his countrymen; and as the opinion of Sir John Reid had been very mendaciously quoted in favour of the West Middlesex, Mr. Mackenzie addressed him to ascertain the truth of this assertion; in reply to which the Governor of the Bank stated, “I know nothing of the parties in question, and I consider it highly improper that any reference should be made to me on the subject.” This was decided enough; and as Mr. Mackenzie was doubtful whether the Independent and West Middlesex had not grown out of a similar company under another name, which had advertised the duke of Wellington as a patron, he wrote to his grace, receiving the straightforward reply, “that the duke did not doubt a gang of swindlers had advertised his name as patron, that the same or another gang had played a similar trick in Southwark, and that Mr. Mackenzie was authorised to state to the public that the duke had not sanctioned the publication of his name in that or any other similar association.”
Although the company had so long a list of directors, Mr. Mackenzie observed that the policies were always signed by the same three individuals, that no designations or addresses were annexed to the names, and that there was an accumulation of functions in the respective office-bearers, quite unusual. He then determined, believing that the company was radically wrong, to discharge his duties at all risks. And most manfully did he perform that determination. In March, 1839, under the head of “Exposure,”[24] he inserted an article in his “Reformers’ Gazette;” and it is hardly possible to exaggerate the sensation which the exposure produced in Glasgow. Men of all parties congratulated him on his fearless attack; the people who were assured in the West Middlesex ran wildly to the office, where they were told, “that the reasonableness and moderation with which they had done business had been the cause of great jealousy and offence, and had brought down on them a variety of assertions of the most false, calumnious, and slanderous character.”
They threatened Mr. Mackenzie with the terror of the law; but on the 9th March that gentleman again attacked them, asking, “Will the mere statement of a parcel of swindlers in their own favour secure for them public confidence, when it has been directly and specially assailed?”
The more they were attacked, however, the more they advertised. All the London and provincial papers were employed to spread their terms, and 2000l. were placed in the hands of their law agent to ruin, if possible, Mr. Peter Mackenzie. Undauntedly, however, did he continue week after week to attack them; and it is impossible not to admire the mingled gallantry and audacity with which they defended outpost and citadel. Though they lost one action they had brought against Mr. Mackenzie, they commenced another, declaring that their terms were fair and liberal, that the public could insure with them at favourable rates to themselves and reasonable profit to the company, “and, above all, that Mr. Mackenzie was false, calumnious, and slanderous.”