York Buildings Company - Forfeited Estates

Forfeited Estates

By 1719, procuring the incorporation of a company had become difficult, with the result that it was cheaper for speculators to buy up the patent of an existing company than to obtain a new one. In that year, its new proprietors resolved to raise a joint stock of £1,200,000 to buy forfeited and other estates in Great Britain. The new capital was immediately taken up and a 10% call was paid. This fund and borrowings then enabled the company to buy estates costing over £300,000, with a rental of £15,000. The estates purchased were estates, mainly in Scotland, forfeited after the Jacobite rebellion of 1715, when the rebels were stripped of their lands.

In January 1720, it proposed to undertake life assurance, though the Attorney-General advised them that this was ultra vires. The company's stock rose in price during the year, reaching its peak in mid August, but the threat of a writ of scire facias depressed the price, which collapsed to the point where the shares became almost unsaleable. In September, the company agreed to 'proceed only according to ancient known and regular methods, agreeable to their constitution and of the encouragement given them by Parliament'. They promised to make a call on their proprietors and did so, but gave each proprietor the option of surrendering half their stock to the company. Most proprietors took this option, with the result that the capital was little increased. The directors were left with £675,000 of stock (10% paid) which they had difficulty in selling. The result was that the company was crippled, and had difficulty in meeting its obligations. In 1721, it raised money by conducting lotteries, the prizes including stock in the company and annuities secured on its estates.

The company undertook various ventures to exploit its estates, including mining copper and lead ores in the Panmure estates in Forfarshire, starting an ironworks at Abernethy and shipping timber from there. However these works were not profitable. It also obtained illegal advances from the Charitable Corporation. Various financial strategems were undertaken to enable it to stay in business.

Eventually, in 1732 its annuitants petitioned Parliament. A new court of directors was elected and supported this. A call was made on shareholders, who were given the £95,000 stock remaining in the hands of the company. This was followed further stock manipulation. On 3 April 1732 George Robinson, the Member of Parliament for Great Marlow, was expelled from Parliament for diverting £356,000 of funds of the Charitable Corporation into buying York Buildings Company stock; the profits of the sale were given to him.