Savannah morning news. [volume] (Savannah) 1868-1887, 1885-10-14
GEN. GoRpoNs srATENrENr.
Explaining the Belmont Coal Mine
Transaction Mentioned by Ward.

transaction Mentioned by Ward.
F-or the Neep York Herald.
ATLANTA, Oct. l1.-Gen. John b. Cor
don, on being asked to-day his opinion
concerning the disclosures about himself
made by Ferdinand Ward in connection
with the Belmont coal mine transaction,
said:
The Belmont coal mine is situated
in Jackson county, Ala, near the Mem
phis and Charleston railroad. 1t was
owned and operated by a cor pany CON-
posed of my brothers, Eugene and Walker
Gordon, Gov. Colquitt and myself. In
addition to the natural resources OF the
mine we had there a brOad-gauge railroad
4 miles long, with a locomotive and cars.
There was also an inclined plane extend
ing from the top to the bottom Of the noun
tain, with a drum and wire cable. Then
there was a narrow gauge railroad, be-
tween two ard three miles long, running
into the mine. On this road there were
two locomotives, with a number Of cars.
Besides these there was a large tract OF
land, covering what was considered the
richest coal deposit, known as the Fork
mountain coal region. We had operated
this nine successfully, and the returns
every month showed an excess OF receipts.
We needed money TO develop the mine.
and to ascertain the real value of the
property we engaged MIR. Eugene Zim-
norman, of Cincinnati, to come down
and inspect it. Mr.. Zimmerman is tie
most skiltul expert in this business in the
country. Mr. Zimmerman gave us a
written opinion declaring that the mine
ought to pay good interest on over Sl,0O0,-
geo.
MEETING GEN. GRANT.
ST went to New York soon after and car
ried with me this opinion. Soon after my
arrival l incidentally met Gen. Grant in
the Fifth Avenue hotel. ! told him of my
mission and showed him the opinion of
Zimmerman as to the value of the mine.
II seemed to be very much impressed
with it AID asked me to 20 down with him
to the Office OF Grant, Ward Il Co. and
consult Ward and young Grant about it,
1 went and, after hOwing them what the
mine was, they agreed to invest in it pro-
vided the showing made was guaranteed
by an observation to be made by an eX-
pert sent by them to examine the property
| They were to take 100000 of bonds
which were to be a mortgage on the entire
property. These bonds were to bear 6 per
cent. interest. As consideration for
their taking these S10a000 in bonds they
were to be given 100000 in the stock,
while we retained $500 900.
CONDITIONS OF THE BARGAIN.
eve agreed to give Grant, Ward & Co.
full control of the mine, and while they
had only One-fOurth of the stock, they
were to vote a majority to control the
MANAGEMENT. The contract we made
with them was not to be confirmed until
William Ward. an elder brother of Fer
| dinand Ward, should visit the property
and thoroughly inspect it. He was then
in Colorado, where be was engaged in
large mining operations.
l.
| and went down TO insnect this mine. Soon
| after Grant, Ward & Co. accepted our
| proposition and began to pay the money
| due by the terms of the agreement. The
! 100000 procured by the issue of the bonds
was putintO the improvement Of the prop
| erty and the payment of debts against it.
] Not one cent OF this money went TO me.
| When Grant & Ward got control of this
mine they placed it under the superin-
| tendence OF man who knew nothing of
| his business. and it was operated in the
most unskillful manner.
REsIGNING THE PRESIDENCY.
AS the control of the property had
! passed from our hands, and as / did not
| approve of the method in which it was be-
ing worked, / resigned the Presidency of
/ the company. About that time / needed
money and l borrowed $4,000 from the
| Marine bank. I did not get the money on
| the Endorsement of Grant, Ward a. Co.,
| but on my personal note and those Of my
/ associates. As security we gave $500, 900
of stock in the Belmont Coal Company
| Soon after I borrowed this money Ferdi-
nand Ward sought to purchase our stock
| de continued his offers until the $4,000
| fell due at the Marine bank. 1t was not
| convenient for us to pay the money then.
4 LOSING TRANSACTION.
We had lost faith in the management of
the mine, and had, by our own contract.
relinquished ali rights in the manage
ment. We agreed to let Grant, Ward 4
Co. take our entire stock In consideration
Of paying the $4,000 we owed at the
Marine bank. They were perfectly will
ing to do so, and thus our business rela-
tiOns closed. So far as the losses are con-
eerned, we lost much more than Grant,
Ward e. Co., for we lost a magnificent
property, which, in the opinion of the best
experts, was worth over 81 ,O00. 900, and
in return got nothing. That is the whole
story"