Los Angeles daily herald., 1889-09-18
THE ROSE DEAL.
What Was Paid for the
Sunny Slope" Property.
THE PROMOTERS PLUMBER
They Raised the Price from 100000
to $1,75O,00O, and Made
Over q Cool Million.

Mr.. c. White Mortimer. the British
Vice.C Consul in this city, had something
to do with making the sale OF the L. j.
Rose ranch of "Sunny Slope" The
HERALD being interested in getting all
the facts in connection with this remark
able deal sent a reporter to interview Mr..
Mortimer in the premises. Yesterday
afternoon the Consul WAS found at his
Office in Temple block, and in
answer to interrogatories put to him
he made the following statements:
"In March, 1885, Mr.. Rose asked me
to make report on his property, to be
used by Mr.. Bowe, his agent in London,
in effecting sale to an English syndi-
cate. l inspected the ranch, and made
inquiry among friends and acquaintances
who were familiar with it. Several wrote
me that the white scale had been ex-
tirpated, and everyone 1 consulted con-
sidered that the place was worth $780,
600, at which amount Mr.. Bowe was
then offering it for sale. This is about
$3.50 per acre, and as it included the
good will of the business, winery, etc.,
l think it will be admitted that the price
was reasonable
Tie reporter asked Mr.. Mortimer what
followed. He replied:
Upon the strength of these reports
the company was foRted in London by
Sir John Puleston. l must explain to
You that in England persons wanting to
form q company go to some prominent
man, who, to some extent. guarantees
it's success. This individual is called a
promoter, and for his services receives
Q considerable sum in cash or shares of
the company, when a full disclosure
Is made to the company of the amount
the promoter is to receive. This is no
doubt legitimate. have tried to form a
mortgage company in London to lend
money on first mortgages here at per
cent to 10 per cent, and failed, because
was not prepared to offer any induce
ment In the shape of promotion money.
Sir John Puleston, who is q London
banker and Member of Parliament,
hoated the L. J. Rose & Co., and he and
those associated with him received, am
informed, about $4,000 in cash and
shares for their services.
The result of the first years working
showed loss of about 900, OF which
about 81 900 WAS for directors fees.
was 80 dissatisfied with the manner in
which the company was managed by my
co-directors that made special report
to the shareholders. This report, find,
contained good deal that was news to
them, and it has resulted in the forma-
ton of SO committee of inquiry to
examine and report on all mat
ters connected with the formation
OF the company. In my report of
March, 1885, describing the property,
referred to my valuation of $4,000 Mr..
Bowe printed this in full for the parties
with whom he was negotiating at that
time. He did not succeed in making a
sale, however, and when it was reprinted
Tor the parties who subsequently pur-
chased, all reference to my valuation was
omitted. II the reference to nv vslua-
ton was omitted with the knowledge of
the promoter with intent to deceive the
shareholders, he may have to refund
some of his profits. and it will be for the
committee of inquiry to decide whether
suit shall be brought to compel him to
do 90.
son December 5, 1885, Mr.. Bowe wrote
me asking me to cable a Mr.. Haldemsn
that in my opinion the estate was worth
from 81 ,250, 900 to $1,50O,OOO. In reply
to this letter wrote him, under date Of
December 81, 1885, as follows: I can
not cable Mr.. Hsldeman in the way YOU
suggest, for the following reasons:
valued the property little over year
ago at 100000. 1t has appre.
ciated considerably in value in
the interval and is worth now
in the neighborhood of $1,000, 900.
In the hands of an English company
who may employ some one not com.
petent to manage such q concern, the
property might prove failure at even
100000. When l made my report was
informed on the best authority that the
orchard was free from white scale. Siace
that time learn that it has been At
tackled. This may be very serious.
1.-The lee Mr.. Rose agreed to pay me
was contingent upon sale being made,
and you will see from that letter that /
was not prepared to earn my fee at any
cost. In England lawyer who made a
report and valuation of piece of real
estate would be considered unprofes.
sional, and for accepting contingent fee
might probably be disbarred. Here, as
you know, this is not the case. Before
the GALE was completed Mr.. John W.
Batten was sent out to examine and re-
port on the property, and he assured me
that the company was paying only
100000 for it. had heard that
Mr.. Bowe had raised the
price to some very high figure, and
questioned Mr.. Batten as to the truth of
this statement, and told him company
ought not to pay more than 100000
The committee of inquiry is due to
Mr.. w. M. Adams acting on information
l supplied to him. In an interview with
q representative of the London edition OF
the New York Herald Mr.. Adams was in
correctly reported with regard to myself.
This inaccuracy he subsequently cor.
rected. The correct statement was that
he had informed the Government that
some material statements of mine were
contradicted by Mr.. Batten, and that as
the denial affected my reputation he sug-
gested that Consular officer attend the
meetings of the committee of inquiry"
Mr.. Mortimer exhibited the pros
pectus of the company to the reporter,
which corroborates what he says. He
fs also corrected in saying that attorneys
in the United States not infrequently &C.
cept professional work on a contingent
fee.
Mr.. Mortimer further related to the re-
porter deal he had once had ON hand
in reference to the sale of II. Freeman's
ranches, the Ssusal Redondo and Gen.
tinela. The price asked was e200, 900
sterling, or 81 100000. The London