The sun. [volume] (New York [N.Y.]) 1833-1916, 1888-02-19
AN IRON KINGS COLLAPSE
a FINANCIAL Catastrophe IN sr0R1
FOR JOHN X BURTON

AAtN AAsSAv AAAlNS WANNA ~
4 FINANCIAL CIrAsrROPHn IN STORE
o JOHN X BURTON
He Hes Had Some strong Tutim.sisps 81 -
Already, nud 10 hnid to u. In THE city
Trying to Rnise Msnsy-The n,sssry -
the oorebie Range MiuinE Crane.
Il would not endure again the Suspense
and humiliation Of those months of senseless
panic over the Gogcbic range for a warranty
deed OF 1t. Not because It has deprecated In
values, but because 1000 persons. who invest
ed In these iron properties, looked to this ONCE
for safoty and good news"
This declaration has beon received by each
OF tho shareholders Of the Bessemer Coneoii-
dated Mining Company, and with II a blank
proxy that they are requested to Ill out and 10.
turn to John T.. Burton, who came to he known
as the Iron King with the growth OF his pet
scheme. the development OF the Gogebio
range. 1t was only q few years ago TINT the
Gogebic mining craze swept over Wisconsin
and half OF Minnesota like q blizzard from the
northwest, and every man who had ever gam.
bled In stocks wns anxious to exchange good
collateral for shares In Mr.. Burton's company.
Mr.. Burton said no man nay who had caeh or
tho equivalent. and u good many men were
mnde very happy for q little while. Just It
present Mr.. Burton Is believed to be in this
city trying to raise money enough on his linz
mcnse holdings OF real estate In Wisconsin 70
pay OIL tho moro pressing debts Of the Desss.
mer Company. Secretary Kennedy OF tho com.
pany was here with him and when no returned 70
Wisconsin he reported that $4,000 had been
secured In cash on mortgages and notes. This
money will be used In paying the miners and
satisfying the royalties and rentals Of the feO
simple owners, who have made things verv
lively for the company during the past feW
weeks. Whom Mr.. Burton returns to Wisconsin,
he will DO closely watched by everybody who
is Interested In his schemes. 1t Is said that hO
will mako an attempt to bond the five mines Of
the company for s600,000. partly to FREQ the
omrany from debt, and partly for tho purpose
OF converting to his own bank account be.
tween 5000, 900 and 100000. which he claims
to have spent in developing the mines. It -
| this personal matter TINT the shareholders obs
jeot to, and. unless Mr.. Burton relinquishes Il
the bonding Of the mines will be impossible,
and the services OF o receiver will probably b
required. II this occurs q crash may be Ca
pectod in tho mining world that will over.
shadow the gloom recently caused by the
failure Of Moore & BENJAMIN. Mr.. BurtonS
creditors expect this. for they are looklng
toward. every, bit Of property he owns with
No positive change uf is likely to occur ip the
Of the Bessemer Company will hold q msetin4
In the meantime Mr.. Burton is toillpe with
all his might against the current. II the BLANK
proxies he sent out with his declaration IAr0
ssiiGne Se W vii IN sa sea tss po%er s eo yo tet sbe ssos e
held BY the shareholders, and he viii probably
use this poEer to aid his scheme In. bondiAa
Turton's bulletin In the form Of q personal lei.
ter; in which he pathetiqalIy states that 70 oA3
no longer answer stockholders personally and
F Fss!a d' and ;e Sssa ? s ~ e eSIsh fas sssa "a
iiUai 2 %a On hnv HIS am p1o,tts fr On !. th zen m noS arc o.
Mr.: Burton appeared In Wisconsin. three
years ago In the shape Of 2 manager for the
snes Company my OF this, city. He came an from
Like Geneva and didn't bring any money with
perseverance,. and ran far ahead Of al, the
other insurance managers. Business had al.
v way; TRAVELLED IMt ? led c in E;n. , Onns gro o' r, i Rn Wis,
and the fabulous riches that were said to lyrk
In the, G,ogebic range boosted 1t out. Of thS
stories Of having found u richer lode than the
fR From P pFsi ed du Dt chien to q OAK A Creek sde drsam.d
81 acquiring untold. riches 10 o single woop.
i Tssn ts s.Sef pe ssssn k sS ss sd how cSd e i %sqs e
der when they glanced over Bu,ton,s Bnltrgsn
Moore / benjamin nEn 'nA' - ''a'0 0'A'
Mr.. Burton was one of the first to examine
LILO kE0dLo OkcUlC ThuRo, uuu Wucuu IN TetuTu0u
porated tie Anvil and Tontine Mining Conn
5 6SPie and Ts sss ssssE x q sa s6l S0R n sSy was sssb' 'O g;
except issue his Buiieiiia. collect the s9,ooo.ooo.
sisie. f 9hs 4son f Rinc.h IN T ffs stloekk Of 81 his us c ns.
panies soon rated among the highest priced
FIST FIST Il Sa tie g sann1Bs }ao I !sste It, q BsnR!ss Va n
ley, and Iron King companies at sl.00O.0O0
s fSsh al and IN s0'th!lK s s aaify t bsuel PRAISES ves q
man in the West who ever saw this In
ge@Tsnispns publication wanted ntGs to buy shares
mortgaged their little homes. Rich men
crowded into places whore the stock was sold,
any money invested 1t in the mines, Of the Co
gebic range. apd then dreamed OF riches; The
short time over 100 mining, COMPANIES existed
on papsr IL as nlaEy Gildedi 96 nhS S,o Each 9ns
'i r \ wt \. 'i Rs}fmer on ran me 3 f bis Exchange in tho
toy to grow Tl s4 diseastedi wit viii ng ,E Mas w 2HS e s saS ,,ss
t II illiSd t t, i ni5. = 4 friend n; 81 his wanted q, ir, Pin
went around 10 ,Burton's Office, Fcepins over
quoted on the Blackboard at $40.
".fIs that sir What said 'H ,nr a5s P S syiEpEf :" no asked
We'll. III sell you 9 hundred shares"
tss So f.; / III i ~ II Sis s:" as%t s|'SSii be woF'i u
I'm n broker and have got to sell" gasped
the Doctor.
Don't SELL" Burton lmplorod.
The Doctor said he must. and finally offered
the shares for 81; but they were firmly %.
Doctor suspicious. Iie established a call
Board. 4nd then came the, beginning Of the
s sr% NJ p t%nt had SG bson sunk ns'' we're ".H n stfIi e "a fMs
up u good doai OF money. and whom the cloud
camc Burton dropped tho ANVIL and Tontins
in him. The now owners Of tho. mines raised
over 100000 from tho shareholders by an as:
to pay this assessment were frozen out. Bur.
ton. In an effort 70 save tho other companies.
but no failed TO got moro than two-thirds Of
this sum, and this no was Obliged to SECURE by
mortgages on his real estate. which he had
Burton thought 1t would be n good thing II hs
united the five companies. the Iron King. Blue
Ho did SO. and gave birth to the Bessemer Com.