The sun. [volume] (New York [N.Y.]) 1833-1916, 1878-09-27
GOLD PLACER In TROUBLE.
STOCKHOLDERS TNOUIRTNG INTO SOME
IMPORTANT MATTERS.
Chairman Unrdy's Explicit Report Rejected
ut IA Meeting where Fraud was spoken Of
Freely Mining Under Many Difficulties.


Chairman Uardy's Explicit Report Rejected
ut "a Meeting where Frnud was spoken Of
Freely Mining Under Many DinicultIcs.
The stockholders OF tho Gold Placer Min
ing Company had a very lively meeting at 81
Broad street yesterday. about nfty being pres
ent They were. apparently. anxious to know
why tho Gold Placer did not yield some gold.
Beautiful specimens Of quartz were on the
table. Tho spacious Offices were neatly fur
nished but most OF the fifty mon looked sad.
The meeting was the outcome OF other pre-
vious meetings. at which 1t had been mourn
fully remarked that tho stock, which nominally
represented s25 per share. and usually sold at
from 80 TO "a per share. is now worth only
twenty-onc cents per ishare. Instead OF the
Gold Placer yielding any gold. II has.
thus far. drawn considerable amounts Of gold
from the pockets OF the stockholders. Tho plan
was magnificent one Tho capital was fixed
at 81 100000 The property was said to consist
Of n mine known TO be prolific one in Colo
RADIO with some nppurtenances all paid for.
All that was necessary was to get money enough
to develop the mine In January last contract
was made with s. b. Hard and associates for
them TO sell 20.0OO shares of the treasury stock
of the company. The treasury stock was tho
property Of the company and 1t was proposed
to have the proceeds Of its sale used to- develop
the mines OF the company One day when the
treasury stock was put upon the market. an
elaborate prospectus Of the company appen rod.
The prospects OF the gold placer were presented
in nllui<Yg terms. IL was distinctly asserted
that the company had property paid for and
that the proceeds Of the sale Of the treasury
mine The stock at first sold well. 1t was in
demand at .j5Qand 81 per share. Somebody
reported that Hard and asso 'iatcs had sold
10000 shares. and that they wanted the privi-
lego u selling 5000 shares more. Business
Mr. Bigelow. one Of the directors living in
Boston. came here feeling happy. He had other
mining stock in real mines. that paid him q
good dividend, and he hoped that tho gold
out He calculatel that il tho treasury stock
al 81 per share had been sold TO the amount ~
10000 shiNcs. there ought 10 be- about 500 900
in the treasury On the basis oi the prospectus
IL was about time for the improvements 10 be
begun He knew enough Of mining TO know
very fair condition TO get some of the gold out
| OF IT, As a bus ness man. he thought that the
hest thing to do was 10 60 10 work with the
tiG9oQn 9ni get & 2ul ne eoold H. was rather
| OF treasury stock TO be sold. Others Joined with
him. They thought that as the stock was going
| let the company get the benefit of the accrued
| value Of these 5000 shares Of treasury stock.
saving that the stock might be- given 10 Hard
and his associates TO sell II II should prove con
slstent with the interests oi the company But
| on investigating the affairs of the company,
| somebody discovered that the 20 900 shares had
| not been sold 10y Hard and associates, and tho
Then the st1ck6oidcrs began to complain be.
cause, instead Of going w. the price Of the stock
went down, and meetings were held. The con.
tract with Hard and associates was pronounced
| hard bargain Tor the company. and by rcsolu-
last 1t is not explained how the board came to
authorize even the cautious sale Of the addi-
tional 5000 shares by Hard and associates be-
which i, was said had been sold. 4 COMMITTEES
was appointed at a stockhoders meeting TO in
| ciates and other matters Mr.. Hardy OF 10
Wall street was made Chairman OF that com.
TO 1 Meeting % Of the V stoeRho4erss s"e hed gos
tcrday The report gave forth no uncertain
| sound. N charged distinctly that Hard and as
sociates had sold only 1000 shares against the
| proceeds o, which CLAIMS were made for dis
siamed that thcy had sold 20 20 900 'i shares hat hat
uar, the COMPANY had been put iPS the hsnfs d
! check or balance of any kind" that Mr. Hard
had refused to show his books To the commit
tee. after taking three days TO consider the mat
| tive purposes that only 81 .5u0 had been spent
| IN improving the Company property; and that
Of the grRVest misrepre on IL not u fraud
| In permitting the prospectus to be circulated
containing the assertion that the property was
| paid for. The committee asked the officers Of
! the company 10 resign.
p The The reading OF the report raised breeze.
9oEsd S % BSPtS s wsed i qr Ms Ms
| In prompt speech. He took up tho charges and
| denied that he had claimed 10 have sold the
| 20 900 shares. On the contrary. he said that he
| had returned the unsQld shares the morning
| after he had been called upon 10 do So. He ap-
| pealcd 10 the brokers TO say whether he could
| have returned those l3 OO0 shares so soon II he
| had been using the stock for his personal bene-
III. He said that he had done his best 10 sell tho
| stock bu, he found that some holders were
| putting the stock on thc,market NJ lower figures
Than he 3, could ,S S2Ed to t. He could name
ments 10 oct m snbsi,ry commoniss ,o INV
the stock but the great f in the market t prc %S
vented the consummalion OF his plans;
After some speeches had been delivered a
| disposition to syn athlze with Mr.. Hard was
developed. and finally there was a show Of
hands on motion 10 strike out that part ~ the
| carried and Mr.. Hard was relieved from the
| charge Of fraud Sto 7.
| Nobody questioned Mr.. Hardy's fairness and
ability in making the report but lie was said 10
| have been mistaken
Mr. Angel the President OF the company. pro-
tested against being called fraud. He denied
prospectus. He believed tnat Mr.. Hard had
| tprlnted.
| ing to do with II.
Mr. Angel insisted. however that the proc
pectus was issued very lately. and was true the
| time it was issued Ho proclaimed himself TO
be the owner Of more stock than the whole patty
present. and should not be called fraud.
A stockholder read letter from Mr. Dewng.
| one OF the directors. who had withdrawn after
| losing about 5000, and after some further dis
| the officers OF the company was expunged, and
| finally the entire report was rejected and the
committee was discharged. with thanks 10 Mr..
| Hardy for his able report
Several OF the stockholders were indignant
however, and said that the meeting was q farce
the prospectus n fraud. and the result a pre-
determined whltowash.
TRIMS IN COIIISIOy