The sun., 1890-07-15

who left a card Of George Blnns. New Yorl
Compressed Coal Company, 80 Bedford avenue
had called in VIE SOM
an hour In an Indefinite manner Of some won
derfui new. fuel they wanted the company e
expert who certl1es In the company's prospec.
tus to the remarkable Qualities Of the North
learned that Mr.. Titus had recently visited
officers OF the company In - Paul and endeav
to get them n 9eSstSd n tae new iHS
tract that we might make with them. supposinR
we had made one. would be merely to. give
locomotives to see how It would burn. l have
no idea that any practical use could be made
any rate, ali 5 our experimsnts with il SO far
have gone TO show that IT is worthless. so far
9 En9w atsse e 6riIHedftes d ,h hGSe never even
is merely an idea that was suggested first for
the utilization ofthe ent piles Of coal dust in
II up and are trying to catch investors by pre-
tending TO, use II in making Ignite valuable.
| 1.-THE idea is worth anything you may be sure
| itwoud be used first in the coal regions for
| there the raw material can be got for nothing.
These people must first mine and grind their
| Ignite before 1t Is ready to be made into
| briquettes."
BEGAN As A COLONIZATION SCHEME.
With the cue thus obtained through the
reference to the railrond company given by
| the innocent young man in Boston. 1t was easy
to complete the story OF the Northwest Com
rany mud its scheme for extracting cash from
stnrted apparently to work tho old emigration
scheme. inducing discouraged farmers and
fancy prices for poor land, opening up cities
on the pi Aries, and selling town lots In the
nmds werG Is oS lana n' n HSneS of
! county upon which tho company got IN op
| ton, When the Northern raciiic people can
j celled this OPTION they made provision for
! somo protection OF these bona iide settlers 1t
! is supposed that these now constitute the set
| tement OF New England CITY," although the
! officers OF the Northern Pacific In this city are
| ignorant OF the existence OF any such pl8ce,
except from the Northwest Company's cir
| culars.
| When the emigration scheme fell through
| Titus into whose hands the company came.
idea aud seems really to have believed that
there, were, millions in gr!nuing up Ignite and
abroad, where an Austrian inventor Is alleged
TO have made practicable fuel out OF coal
dust compressed in 1,t that way Titus see. seems to
stuff and to have discovered that special
processes, would have to be Invented to make
patents on some such process have been ap-
Piled for by some one interested in the compa-
discover tho only actual step taken BY Titus
to carry out the briIuette idea has been ne
cH"tE9s siIy as TO with tho c6s, M G5 aetap 5 this
IN experimental plant somewhere In
Dakota. Mr. Gritiin's estimate on such plant
was S5O.OOO Nothing further has been done
about II. and this imaginary plant Ia the only
one that the company owns the statements Of
ing The briquettes which are shown to
would-be investors as samples OF those being
supplied under, the alleged contracts are made
by hand, as ordinary bricks nre made. Titus's
idea, II be has any beyond selling the stock OF
his company. seems to be to raise all the
money he can under the fraudulent pretences
OF the prospectus. and then really to buy some
land and go Into hriIuette MAX ing This is
TO believe him actually dishonest, account for
his conduct.
How MUCH HAVE INVESTORS LosT2
1t Is also asserted that the losses from. the
concern will be small. because but little Of the
stock has been sold but this is pure surmise
for the directors OF the company admit that
the books 3 SO far 81 as st they sn9w DO not sh9w
receipts and expenditures of the company. It
Is al-o admitted that the original Investment
small assessment for incidental expenses has
been levied since: nevert less. two " diyi-
Upon the amount OF stock which from the
@prospectus, @ seems to be outstanding, namely,
Admitting that no dividend was Pad on what
money from which dividends. could have
stock. The PROSPECTUS endeavors TO create the
impression that the =. dividends were from
6riquettes. and at the company's Office It
Is said that the dividends" were from the
sale Of Ian land but as the eompagy has neither
the lasi Of these dividends" was paid in Feb
BY them must be increased by that received
from the sales OF stock since then, which
payment Of another dividend" next month
As the sale has been pushed since
that the total sum already sunk in the wild.
cat scheme is much larger than would at fret
money has undoubtedly come from the pockets
Of small investors. ladies like the one to whom
Mr.. Foote says he sold the block, and others
dependent upon the investment tor, an income.
and by whom the loss will be most heavily felt
WHY BIcKNELL GOT OUT.
The Thomas W. Beknell who conducted the
first negotiations with the railroad ls, we'll.
the Massachusetts Legislature This is not
his only appearance in the role OF promoter OF
the Northwest Company. In the progress OF
the corporation II became necessary TO raise
to hs
@nt was ESfe s"ed fG Bcfno eli eo%dn @
associates give him bad name. William n;
Titus LAWYER Of Noburn. Mass. succeeded
has q fair reputation, and his friends insist
that ~ there is anything wrong with The com
Rot It throush bis Ysonary M IDEAS and his
desire to save something from the wreck;
90 Hes e. ,I regular Col Sellers anyhow" said
and il is through lin, 1t is said, that most Of
lDb Quiet OllCoTS Vi tHo CUIUptuy uhNo DOeu
led into the thing Judge Josiah II. Drum
mond of Maine. the most cons sDicuous man on
the list. Is undoubtedly In II through J. II.
Drummond. Jr,. who has sHlaried Office in
Was originally director aud was made
began to be dissatisfied with the careless way
In which the office work OF the concern was be-
ing done Andrew II. Patton one OF the direc-
tors and assistant clerk. is also assistant
manager OF the Boston Erenntg TIGreuer.
WHY PATTON WENT IN.
Il went into tho company first, " he says. at
the solicitation Of Nj r. Bicknel He seemed to |
think there was lot Of money In II, and offered
TO make me clerk ut q salary of $1,000 year. |
There was nothing 10 do, and, OF course, It was |
an easy way to get the money. | couldn't get |
my nay. however. and when after considerable |
trouble had manaRed TO get 800 out Of them,
] threw up the olhce. None OF us has over |
known anything about the affairs OF the com
left In tho hands OF Titus For some time we |
have been dissatisfied with the loose way In |
which wo thought tho hooks were kept, but we |
never had any suspicion that there WINS any
thing crooked about the concern. Just be-
fore Titus, went West this time Capt;
Sillars and ] wore arranging to go md
soc Mr. Franklin, the Treasurer. and come
wanted them written up SO that they would