New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1883-02-27
DETAILS OF THE EMBEzzLEMENT.


A FORTUNE SPENT IN AN UNPRoFrrABLE MINING
ENTERPRISE
Tventv wears ago Mr. Crowell was cashier OF the
People's Bank. in Canal-st. The close confinement
of the bank impaired his health and in 1866 he re-
signed his position and took charge Of the Talman
estate. The property belonged to Mrs. CornelIa A.
Atwell her sister, Miss Catharine c. Talman, ana
their aunt Miss Caroline Talman. Mr. Crowen was
dny constituted their agent and given power Oh
attorney by the ladies, and theDceforward tDey re-
lied implicitly on him in all business TRANSACTIONS.
good deal of the real estate, improved ana unim-
proved, was in the vicinity of Central Park, and
through the rapid appreciation in value of such
property the estate increased very much IN value
Mr.. Crowell proved himself to be good business
man. His investments of the surplus income of the
sisters in most instances showed sound Judgment
In 1868 the Talmans went to Europe for several
months and Mr.. Crowell accompanied them
as business agent. The original securities
consisting of United States State and city
bonds, railroad bonds and stocks, and bonds and
mortgages, turned over to Mr.. Crowell when he
took charge of the estate were gradually increased
until recently, when Mr. Crowell reported that
there were IN his possession securities worth nearly
three-quarters of million Of dollars
During the summer of 1870 Mr.. Crowell was ap-
proached by some friends with offers to procure for
him large amount of the stock of the Empire Sill
yer Mining Company. The mine is situated at
Park City, Utah. 1t is short distance from the
famous Ontario Mine, which has PAID morefhan
S3 600 900 in dividends to its stockholders There
were many who believed that the Empire was on
the same lead as the Ontario, and that compara-
lively small amount of money was needed to demon
ssrate this fact Mr. Crowell was invited to visit
the mine and see for himself what the prospects
were In company with four five friends, he
went to Park City and made as thorough an exam
ination of the mine as non-expert could make
He became an enthusiastic believer In the future OF
the mine. When he returned East he visited bis
friends and by his representations induced con-
siderable number to invest In the stock. He pur-
chased several thousand shares. and soon after
ward was male president of the company. The
Office of the company was at No. so Wall-st
ANrICIPAT1oNs THAT WERE NOT MET.
The rosy anticpatons of the shareholders of the
mine were not verified. There seemed to be a
demon of ill-luck hanging over the mine, ready to
descend at the first opportunity that presented
itself. Water was struck before the miners had
gone far below the surface. The mine com
pletely flooded before the necessary pumping ma
chinery could be procured and put in place. When
this had been done. the water pumped out. and the
work of excavatng resumed. other delays occurred.
There seemed to be poor management. Occasion
ally, however, there were CLEANS OF hope.
lead was struck, ore was got
ont and expensive machinery was pro-
cured to reduce it. Every one was sure that
the extension of the Ontario lead had been
reached. Then came the that the hosting
works bad taken fire and been consumed. and that
the hosting machinery was rendered worthless.
The Eastern stockholders by this time were in
ANYTHING but happy frame of mind. The stock.
which was at one time quoted at 50 per share had
fallen more than oue-haf.' The president was ad-
yised to 90 to Park City and see if lie could not
bring about an Improvement He went there, ac-
companied by one or two of the heaviest stockhold
ers, and they made another examination. By this
time the mine had become pretty well filed with
water on the lower levels They reported the facts
10 the stockholders aud it resolved to levy an
assessment on the stock and use the proceeds once
more to place the mine in working order This was
done Many of the stockholders paid the assessment.
but a considerable number did not DO So 10 get
the mine into proper shape certain amount OF
money was absolutely needed, and Mr. Crowe!l
made up the deficiency. trusting to the future out
put from the mine to repay him.
There seems no reason to doubt that he had used
up all his own resources and procured the indorse-
ment of notes to a considerable amount by his rela-
committed to his care by the Misses Talman and
Mrs AtweD. He acted with energy. The former
snperintendent of the mine was dismissed and a
new one placed IN charge. The working force was
increased and the explorations on the various levels
were pushed forward as rapidly possible. The
new superintendent gave hopeful reports of the
"pay ore" that was struck from time to time, and
il seemed for a while as if the main difficulties had
been surmounted and success was about to crown
the efforts of those who had struggled so long with
misfortune. But the expenses of working the mine
were heavy. II was thought that only little addl-
tional expenditure would make a great success.
Other assessments were levied the stockholders,
who were even slower than before in responding TO
the CALL Mr.. Crowell found himself reduced to the
necessity of practically stopping work or advancing
more money. Always there was the possibility OF
striking the Ontario vein and in that case there
would be no further trouble. 1t would
mean a large fortune to the fortunate
possessor of a considerable amount
of the stock The work of excavating and explor-
ing was continued but with no better results than
heretofore. The veins that were struck proved to
be illusory and most of the ore extracted dId not
pay the cost OF reducing.
COMPELLED TO MAKE AN ASSIGNMENT.
The end came about fortnight ago. Mr.. Gro
well awoke to the reality that he had
used ND all his own estate. amounting originally
to about ST. 900; had appropriated trust funds
TO the amount of $60l 900; and had induced rela-
tiyea and friends to ndorse his notes TO the extent
of S4s 200. He called together few relatives and
friends and told them just how matters stood
Naturally they were thunderstruck. All knew that
he was carving q load in the Empire mine
but none of them dreamed of the
. amount that had been sunk in the enterprise
although some of them were stockholders. They
were more than ever surprised when Presldea'
Crowell admitted that he had taken the funds com
mtted to his care and to an extent that he could
never hope 70 make good.
His friends advised him TO make All assignment al
once for the benefit Of his creditors. This was the
fatr rrrau nd tnnt % hi