Wheeling register. [volume] (Wheeling, W. Va.) 1878-1935, 1889-07-24
THE IRON KINGS FALL.
Millionaire Burton's Windy Speculation in
the aogebIc District.

Millionaire BurtOn's Windy speculation IN
the GoEebic District.
MmwAUKEE, Wis, July 23.-The an
nsuncement Of the failure Of John f. Bur
ton. who, during the mining crszs four
wears ago, was known SIS tie "GOgebic Iron
King" has brought to mind the extraor-
dinsry rise Of Burton from nothing at all
to magnificent sfluenee, all in the space Of
fsw months. His liabilities are said to
be about Ss25, 600. The Central Trust
Company, Of New York, is the largest
creditor.
Barton came 10 Milwaukee from Lake
Geneva about five years ago, to take charge
Of the Wisconsin Office OF the New York
Equitable Life Insurance Company. He
attracted little or no attention at FIRST, but
he soon drew to himselfa wholesome re-
suecs for he proved q manager Of rare
ability. He had been in the insurance
business about a year when the first re-
ports about the boundless wealth of the
Gogebic range were waited from the
northern country.
Oae dsy he issued q call to all Of
Burton's big boom agents OF the Equit-
able Company in the State to report 10
him. When they came ne offered them
stock in the Anvil and Tontine mining
companies. which he had incorporated
each Tor 81, ,OOO. GOO, at $2j per share.
Some Of them took stock and paid cash for
it. Others hesiiated. lie induced them
TO give notes for the stock. He said they
wOuld have fortunes in few weeks.
This was the beginning Of the career
that in brief space of time won for him
the proud title OF Iron King" and nearly
s., OOO. 900 in cash. He began to issue a
oulleiin, in which he set forth in glowing
colors the splendid prospects of his proper
ties, aud, BY scattering them widely over
the State and, in fact, throughout the en-
tire Northwest, thousands OF people with
money TO invest in iron focked around his
standard. Anvil and Tontins were soon
rated among tie highest priced stocks in
the exchanges, and the people who got
them were lOath to sell on any terms, be-
cause Burton never failed 10 assure them
that their real value had never been touch
cd Then he organized the First National,
Blue jacket, Bonnie, Valley and Iron King
companies, stocked each for a million, and
bv singing their praises every day and tel
ling wonderful stories in Burt0R's Bulletin
about the vast quantities Of rich minerals
that we're being taken out Of them, he dis
posed Of the stock like egg sandwiches to
a crowd of hungry sports.
TIE BEGINNING OF THE END
of Burton's boom came when the people
wanted TO realize on their stocks, and then
/ they suddenly seemed to waken up TO the
| fact that they had been deluded. The first
indication Of weakness was shown by Bur
ton when he lost his grip on the Anvil and
Tontiue and allowed them to psss into
new hands. They had been a heavy bur-
den to him because their stock was non
assessable, and he was unable to raise
money from the stockholders 10 continue
their development. Burton later con
csived the idea Of putting the Iron King,
Blue Jacket, Bonnie, Valley and Fist
National into one company to enable him
TO issue additional stock and thus raise
money to resume active operations. The
Bessemer Consolidated Iron Company was
the result, and it WAS stocked at $780,
coo.
Barton then went to New York and in
terested ex-senator Steve Dorsey, Jesse
Grant and Secretary Window in the COM
paDy. and through them to get a surplus
Of 81, 500, 900, 5000 600 having been
doled out to the creditors Of the old COM
panies, placed safely in the New Ysrk.
Dorsey and Window were made trustees of
the company, Jesse Grant Secretary, and
J. G.. Butler, Jr., q wealthy young Ohioan,
was made President. They had the stock
entered upon the New York Stock Ex-
change list Of securities. but we're unable
to induce any capitalists to believe that it
was worth anything BurtOn's creditors
kept attaching his property. He temper
arily succeeded in stsving of the men
whom be personally guaranteed from loss
vi hen they bought the stock, but the time
finally came when they renewed their de-
mands and be could not meet them. II is
impossible to estimote the extent of these
personal guarantees, but it is said that in
every town in the State there are men who
hold them.