New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1876-04-15
PARRa AND THE EMMA NINE.
LETTER FROM HIRAM A. JoHYsoN.N
Making n total OF 2JJS,O

mil al he NET val ne of
Making total of...-..............-.....31 'ioOoo
and more than one-half of the capital of the Com
pany.
The above values of ore were net estimates. 1t
required G. :, 900 per month or f1SO,Oo0 per an
to pay the dividends assured to the stockholder
by the prospectus. 1t will therefore be observed
That the above sum of cash and turned over To
the Company was equivalent to three years diyl-
dends Oh the 10000 shares being the entire capital
stock of the Company at ll2 per cent per month,
less ESQ ONLY Thirteen monthly dividends were
paid the first having been made on the LIST day OF
December 1871, only 90 days after the Company
was organized, and the last paid on the lst day
of December 1872. The total dividends thus DIS
bursed required the sum of c195,0O0 Now let us
see how much of tins sum came from the legitimate
working of the mine.
We will take the Gf6,300 cash, and the 2,SOO
tons of ore III transit TO London turned over to the
Company as being OF the net value of 10000 and
we have e11G,30O, to which We will add Eio,OcO'
the SUN that the Company owes Park for money adj
vanced by him TO pay portion of the October ana
wholly the November and December dividends, TO
enable himself and his associates to sell out the
residue of their reserved vendors stock at high
prices and we have the sum of fl5G,3OO. which
deducted from the sum of e195 000-total amount
of dividends pad-leayes the sum Of t3S,7O only
IA the total yield of the mine for the thirteen months
from these vast ore reserves vouched for by the pros
pectus With the stoppage of dividends came the
collapse Of the Company and a rapid fall in the price
of the shares. The present quotation value OF the
Emma shares i'm London is 81 5s. per share, being
equivalent TO eG2 800 or $4,000, for the entire
stock In fixing even so high price for worthless
mine the shareholders doubtless take into consdera
ton the almost certain chance of recovering agaHRt
1xf1 nd
already pending This amount corresponds quite
exactly with what Park told Lyon before he went TO
London TO sell the mine, that il mere she'll
and that there not more than $3.50 900 worth 81
ore then in the mine II is fact that Trcnor W.
Park was the managing director, and had full charge
OF the mine from the inception OF the Company until
long after the cessation of dividends therefore there
is no truth or consistency whatever in the statement
that the mine failed under English management.
Then again. according to Prof Siliman's report No.
2, dated Feb. 20, 1872, as it appears ndofsed or
underwrtten by William NJ. Stewart and Bridges Will
liams. an additional quantity of reserves had
been discovered, and measured in the mine, amount
ing to 2i,1jO tons Grs-class ore of the estimated
money value Of $5,51s,27j. Then again, by the
cable report of April ,. 1872, signed 10y Williams,
Sillimsn, and Husscy, being report No. 2. still
another large body Of irst-class discovered,
and vouched for to the English shareholders amount
lug TO 5000 tons, giving cash value Of 5000 per
ton, or 10000 900 for the whole. Now 10y adding
together the values of these various discoveries we
have the enormous sun Of sd, POS j2J. from which
we will deduct 1915, 900, being the amount of the
dividends paid. assuming that they came from pro-
ceeds of ore sold with the mine. and not from Park
in the way Of loans as they really did IN part. as
appears above and we have final balance of S23-
233525. Will Messrs Park, Schenck, Stewart, and
ID II, ,Irt,, haf.v lao
Washington what has become of these vast reserves
of ore and Why the dividends ceased. with the mine
under their management, if the prospectus and the
various reports made 20 the shareholders and tho
English pnblc wero true. At the original sale Of the
stock 81, 900 shares were sold by subscription, the
remaining half being retained by the vendors on
the assumption that the mine was 50 valuable
that the owners would not consent to sell more than
half interest. All of the reports and professional
visitations were procured 10 be made, and literally
paid for by Park aud the other vendors. not only be-
fore but after the mine was sold to the London
Company The reports made subsequent 10 the or
ganization of the Company, were obviously pro-
cured TO be made to enable the vendors to sell their
shares rs large sales followed each recurring report
II has already appeared in evidence before the Com
mites that the vendors sold about $4,000 shares,
realizing fally 81. 100000 within IL days next sue,
ceedng the cable report of Williams, Silllman, and
UueseV of April ., 1872, that 5000 tons had been
discovered of the value OF $1G,OOOoOO.
The important question in determining whether or
NOT The sale of this mine n fraud is to ascertain
whether these vast quantities OF ore actually tX'
isted as represented III the prospectus ana ny me
yarions reports. his presents tangible question,
and one that can he much more easily 30 we'd than
the geological problem that Cen Schenck IL now
nrai1e before the Committee. that the mine NAY
possibly become productive further eAploratloE
/ would like to know upon what hypothesis Zen
Scheuck can assume that these ores existed, when
the mine was exhausted and the dividends ceased
AT the time and uuder the managemcntoi BIT. fark
as above stated If the reserves we're not III Tue
mine as represented by the prosp0rrs, on the
9th day Of November 1871, the sale OF the mine was
clearly a fraud and ~ Gen. Schonck was one OF the
directors associated with Park, stewart. and BaN-
tr ina vcnders and iolncd them while Minister 10
England in ssuing til prospectus, lie must De hcld
reasonable in with his associates Tor All the
consequences that followed. HihAn a: Johnson