The Remarkable Case of Peter Hasenclever

The Remarkable Case of Peter Hasenclever, Merchant

The document presents the case of Peter Hasenclever, a merchant who established iron works and potash manufactories in New York and New Jersey but was later dismissed and faced legal challenges.

Introduction

Hasenclever argues it's his duty to vindicate his reputation against enemies trying to ruin him through false statements. He reluctantly exposes the actions of individuals, including Lieutenant General David Greeme, George Jackson, and others, accusing them of malicious intentions. These intentions include preventing his discharge from bankruptcy and destroying his reputation as a merchant.

Hasenclever's Background and Plans

  • Hasenclever arrived in London in 1763 with a comfortable fortune, seeking to become a British citizen.
  • He established a house in London and partnered with Andrew Seton and Charles Crofts, forming the firm Hasenclever, Seton and Crofts with a capital of £21,000.
  • Hasenclever's contribution was £8,000, Seton's was £8,000, and Crofts' was £5,000.
  • He was knowledgeable about steel, iron, potash manufactures, and the culture of hemp, flax, and madder.
  • He was aware of the rich steel and iron mines with abundant timber in North America.
  • He believed the establishment of iron and potash manufactories in North America would yield high profits between 20 to 30 percent annually also that the culture of hemp, flax, and madder would yield greater advantages.
  • He aimed to establish these manufactures to realize an estate within the British Dominions.
  • He collected steel, iron and silver ores including some from the mines of Mexico.
  • He observed that Great Britain and Ireland imported 40,000 tons of bar iron, hemp, flax, timber, madder, pot and pearl ashes worth £2,000,000 and resolved to establish the manufacture of those resources in North America.
  • He communicated his plans to the Lords Commissioners for Trade and Plantations, receiving their written approval on January 10, 1764.
  • Friends agreed to invest £10,000 to £40,000 to support the enterprise.

Establishment in North America

  • Hasenclever arrived in New York on June 4, 1764, after embarking from Falmouth on April 20.
  • He bought a decayed ironworks in New Jersey, repaired it, and produced iron in November.
  • He acquired over 50,000 acres of land for the company for iron works and planting.
  • He purchased 122 horses, 214 draft oxen and 51 cows and a vast number of implements for the works, discovered and worked on 53 different iron mines and transported 535 people from Germany including miners, founders and carpenters with their families.
  • Between May 1, 1765, and November 1766, he erected numerous buildings in New Jersey and New York, including:
    • Furnaces, forges, stamping mills, coal houses, blacksmith shops, frame houses, storehouses, sawmills, stables, carpenter shops, reservoirs, ponds, and bridges.
    • Buildings were established at Charlottenburg, Ringwood, Longpond (New Jersey), Cortland, and New Petersburg (New York).
  • He made water reservoirs that were 1 1/2 to 5 miles long and 3/4 to 2 miles broad, containing more water than the Ecluse of St. Feriol in Languedoc.
  • Roads were built to transport provisions, coal, ore and iron going from 3 to 8 miles long.

Challenges Faced

  • Discovering abundance of ore that proved cold-shear, copperish, sulphureous, and of an arsenical quality; with only 7 out of 53 mines being good.
  • Dams ruined by floods in the winter of 1765.
  • Refractory disposition of workers wanting higher wages, leading to complaints and substandard work.
  • Desertion, sickness, and death of workers and managers leading to neglected work with accounts behind.

New Partners and Favorable Reports

  • In January 1766, Major General David Greeme, George Jackson, John Elves, and Richard Willis became partners.
  • Greeme and Jackson praised Hasenclever's zeal and perseverance.
  • Seton and Crofts reported the iron produced was the best ever seen from America with Mr. Willis, the agent, confirming that his iron was the best in America.
  • Andrew Seton sent reports of the London house earning £4,000 to £6,000 per annum, with projections to double the capital in 1766.

Financial Troubles and Return to London

  • In September, Hasenclever received warnings about Andrew Seton's extravagant lifestyle and risky financial practices.
  • He settled his affairs in America, giving instructions to William Seton and the managers, and departed on November 13, 1766. The works cost around £54,600 at this time.
  • Reaching Putney on December 20, 1766, Hasenclever learned of Andrew Seton's bankruptcy.
  • He found Seton indebted to the house for £14,500 and a letter of license had been granted to Seton and Crofts.
  • The partnership owed Hasenclever £3,999 14s. 10d., and the house's credits exceeded demands by £17,001 s. 8d.
  • Andrew Seaton exchanged his private notes for those of the partnership and Commodore Aurthur Forreſt was being supported by the house draining cash.

Complications and New Partnership

  • Messrs. Mure, Son and Atkinson became partners in the American Company through a credit given by Andrew Seton.
  • Hasenclever delivered deeds and accounts to his partners in the American Company.
  • They persuaded him to return to America, offering three free shares and commissions.
  • He gave up claims of £5,000 and 11,500 acres of land.
  • He calculated annual revenue of £1,200 to £1,400 from commissions and profits based on producing 1250 tons of bar iron value £16 per ton, 400 tons of pig iron at £6 per ton, and 35 tons of pot and pearl ashes at £30 per ton.
  • He promised to cover the deficiency of £23 in the pound of their partnership from his private estate.

Return to America and Further Difficulties

  • Hasenclever resumed direction on August 16th 1767, finding affairs neglected and books unaudited and Mr. William Seton who was in charge has abandoned his trust.
  • Two, new coal houses burned preventing finishing the furnace being completed for 8 months.
  • Trustees noted the bad management of others and acquitted him of bad management in the absence.
  • 46 days after arrival, Mr. Feston Humfray, who has been engaged to be Agent and Manager assumed the sole direction.

Conflicts and Mismanagement

  • Humfray, engaged by the Trustees (Greeme et al.), commenced mismanagement and made poor decisions, hired poor workmen. The Trustees did not reply when Hasenclever warned them.
  • Humsfray was paid a salary of £200 per annum.
  • Hasenclever refused to pay losses for his shares and warned the others to refuse to as well in face of the mismanagement.
  • The Trustees directed him to leave the conduct to Humfray without control in their letter of the 12th of December 1767, but by their letter of 27th of January 1768, they sent me the resolves of the American Company, by which they suspend me from all transactions in their affairs because I had not sent my accounts and books.
  • Trustees dishonored his bills of £10,823 9s. 2d., leading to imprisonment and loss of fortune/reputation.
  • They formed a partnership to deceive him, as confirmed later by the affidavit of John de Noyelles.

Further Injustices

  • Richard Willis ordered wheat/corn cargo to Naples proteſting the bills, and never sent assorted India goods ordered, using defamatory expreffions.
  • Willis sold his shares in a ship unnecessarily 10491 7s.
  • The governors of New York and New Jersey communicated with him about protection for the works, due to the requests of Commodore Arthur Forreſt and Mr. Richard Willis, and were surprised due the efforts used to promote the good of the people.
  • Trustees sent Andrew Seton, by whose deceitful conduct the London house had been bankrupted, to examine accounts showing him to have been owed of 27,7061 6s 9 d of New York Currency.
  • The accounts were provided which were attested by the Hon. Hugh Wallace, Efq; and the Hon. Henry White, Efq; (both members of his Majesty's Council at New York), and the affidavit of his book-keeper Mr. Pollman.

Efforts at Resolution and Further Losses

  • 41651 9 s 2 d had been paid; with remaining bills dishonored of £6657 19 11 with 20 per cent damages.
  • The American Company owed him $14,529 19 9, the 1st of January 1769.
  • Negotiated for arbitration were refused and a tour made to Shipody, Nova Scotia stopped in which a loss of ship timber along lake Champlain happened.
  • Received a share of Silver Mine on the land of Colonel Frederic Philips.
  • Accuse Lieut. Gen. David Greeme, George Jackson, Efq; Deputy Secretary of the Admiralty, Mr. Richard Willis, and Mr. Richard Atkinſon, of preventing German Steel Manufactory from being established.

Loss of Collections and Continued Persecution

  • Lost collection due to going near 2000 miles around the world to avoid imprisonment.
  • Collection of North American Ores was sent to London in the British Museum consisting of 42 different Iron, Steel, Copper, and Lead Ores, with a collection of Silver Ores from the mines of Mexico.
  • Commodore gave power of attorney to sue in New York for 4000 l. for fraudulent credit of 4,000 sterlings due to Mr Seton.
  • Books and papers were given to merchant John Berens, Efq to be used in a settlement.

Bankruptcy and Legal Battles

  • Statute of bankruptcy enacted and creditors signed his certificate.
  • Two petitions in the Court of Chancery were placed to hinder the allowance or confirmation.
  • The trustees accused of defrauding the American Company in the sale of a tract of land, for 1500 l., as he sold 6755 acres of land with a gain of 302 l.
  • Applied to their respective court s by creditors who live in the dominions of the King of Prussia to intercede. His Pruffian Majesty ordered his Envoy Extraordinary his Excellency Count Malzahn, and the States General ordered their Envoy Extraordinary his Excellency Count Weldren, to reprefent his affairs and present to secretary of state, the 7th of November 1770.

Failure of Resolution and Continued Legal Maneuvering

  • A meeting at Guildhall on 4th of January 1771, with affignees to give books and papers but books were not opened Mr. Berens first wrote down, and then read to the commiffioners by way of proteſt.
  • Court of Equity and what business world appears manifest injury, and I of the allowance of my certificate.
  • Smith a fabricated two petitions with the name of Commodore Arthur Forreſt to prevent him obtaining certificate of bankruptcy.

Petition to the Lord High Chancellor

  • Submitted letter to the Lord High Chancellor outlining his circumstances from financial success to financial ruin and requesting that his reputation and request be considered.

Affidavit

  • Provided Affidavits including those of John Berens stating that information and the narrative which he provided was truthful.

Further Persecution

  • Inability by David Greeme to acknowledge what crimes he had committed.
  • Submitted the preceding accounts to the examination of persons of experience who are acquainted with the iron industry.

Report to Governor Franklin

  • Included in the narrative are the reports of persons of expertize (including amongst other people Earl Stirling) inspecting works in Charlottenburg Longpond, and Ringwood to William Franklin Esquire governor of New Jersey finding great work and industry and efficiency used in their construction.
  • The calculations of effective accounts and expenses which are provided regarding various facets of the industry.
  • I am a man, and consequently subject to errors; a glimmering hope of obtaining justice, my motto as well as the British arms, DIEU ET MON DROIT to defend with fortitude and perseverance.