The sun. [volume] (New York [N.Y.]) 1833-1916, 1890-06-12

royalty OF % cents ner ton on all tho Iron ore
and 10 cents per ton on all tho coal taken out
OF tho mines. and further agreed to take out
ut lcnst million tons Of each per year, MAX
ing II royalty Of t25O,O0O for tho iron and OF
100000 for the conI. This Is about one.halt
the usual royalty for such mines, but as Mr..
Frazer Enormously said while exploiting the
" had to take that or nothing"
The Tense is signed for tho Now England
BY Herbert i" Peck, President, and Chester L.
Peck lived In Taunton, Mass. beyond this mis-
He thought that 1t had railroad interests some.
where in North Carolina He remembered that
Gen Iarrington. who Is one Of the directors Of
director IN the New England Company, hut he
had resigned from tho, latter unon Mr.. fra2er's
tho same officers in, both companies MIR.
Frazer was very sure that the interests OF the
officers. The lease with the New England Com
nnny had been made nearly q year ago, He
,inoI, :6&t the company hid Invested about
ing the lands since then. They hadn't taken
out their quota OF two million tons. but they
quarter, and had promised TO pay the rest
sometime. Mr.. Frazer was very sure that the
rlcht In time. Even il it did not, he airiIy In
tlmated. 1t would make no difference, for there
Wer tSa Lots people anxious nov to get Lease
soon as the lands we're leased to the Now Eng
land Company for half the regular ROYALTY
get them ut tho regular figure, although no.
body would touch them before.
whichever ono was. In control at that time
made an effort TO got rid OF the 4S9 bonds that
aekEn1ese "9S As the way s" to accom-
pllsh this, they cancelled the issue, The plan
worked very well. according to Mr.. Frazer, for
when they got notice OF cancellation most OF
the persons who held the bonds brought them
to the Office of the company and gave them up
or whatever other trihe Mr.. Frazer wns most
willing to part with at tho time. Not over
says. The u most S trduSe over the them he said,
was with n clergyman in town up the river,
who bought one Of the bonds for So at an nuc-
Of his congregation and took the next train for
New York to realize n Thousand dollars on 1t.
pudiated: and there was u lawsuit over 1t,
other bonds to the extent OF Sl.9UOOO0 are
admitted to have been issued. OF them $780,
900 are being used as backing to the present
scheme of the company.
This ends the story Of tho investment COM
pany proper, and shows it to be u concern with
stock and bouds of s?.000.0O0 based upon an
original investment OF $4,000 in tax titles TO
the usual rental for such lands 10 company
amounting to millions Of dollars per, year has
been twelve or fifteen thousand dollars. and
which has SO far succeeded in paying one half
OF the rental for the first quarter of a lease
are the, security offered conservative in
vestors" for hard cash put into alleged water
Tho water rights business is u side issue OF
the Investment company. Before the Ponnsyi-
TSFS East for us
to carry on an extensive irrGating enterprise in
California. Tho investment company agreed to
float the flume bonds in consideration OF q con-
trolling interest in the stock. The Mercantile
Trust Company was to be the trustee for the
bonds and the stock transferred to the invest
melt company was to DO placed In tho hands
Of the trust company as security In order TO
as Mr. nsf pG IT,
minority Of lie stock, into the hands OF the
stock OF the fume company and the
eassomss for o ame sond ps
Frazer alleges that i. b. NeTcom6e has agreed
delay in getting the bonds printed. and mean
time Charles l. Morrill,. the Secretary of the
70 eSer the beeds the
him He got them. and Mr.. Fraser says that
he took them 70 Chicago and burned them.
lied the San Luis hey Water Company, which
PROMPTLY went ahead and took possession of
belong to the San Luis Roy Flume Company
The water company still holds them' and Is
The stock Of the tiume company meantime
remains, Mr. Frazer says in the hands Of the
IL n the the the
company, and the rest IN the names. Of the
Caliiornians but all out OF the reach Of either
has suit in tho courts against the trust com
EaGy demsGdPg the delivery to # Of the stock
Morrill, is said to have burned.
Mr.. Frazer insists that by virtue OF its
pS SitS owns the water rights formerly claimed
by the nume company and in order that no
grass should grow on the properly while it is
first underworld 10 font q mill ion dollars more
Of investment company bonds. the, collateral
stock of the flume company, ami this failing.
he Is now trying to float $75O.OOO of certificates
s soc aT OF the company pSS onds
It's q very good scheme. II 1t works. either way.
There has boon considerable curiosity among
financlers as 10 the manner In which the con-
Germ got the guarantee Of the Holland Trust
icates. Mr.. Frazer explained this with perfect
frAnkueSs. and IL was very simple. Out OF
dollar paid to the American Loan I and
Holland Trust Company From its share Of tho
as it comes due and gets its commissions. be-
sides having tho use OF tho money pending the
Ills bearer gasped for breath rs Mr. Frazer
calmly mentioned this little arrangement. and,
after recovering. asked: Observation-Disclosures.
for their interest. but how about their princi-
that" said Mr.. Frazer Sweetly.
He repentet, OF tho confidence tho next mo-
mont, and said he really didn't mean to init
mate that the security furnished by the Penn
sylyania lands was not ample for tho certiii-
Gates. even II the hume company should be
worthless
Company Is to col, Of tho Doodle Mr.; Fraser did
not say, but he evidently felt that the company
lad driven a very hard bargain with him. Io
said that the Holland peonlo we're to blame for
wouldn't DO satisfied with anything" be said
Hc had gone TO them over a year age, on the
advice OF n friend. who said that Tho Holland
Company was lust the ono he wanted to fix the
that said Mr.. Frazer. bitterly, they have kept
the matter dragging along ever since. II they
had only stood up to the rack and kept their
gnd up there would never have been any fuss.
/ don't want TO say anything AGAINST ME- Van
along ls dreadful. And the fees I've had to pay
Now. III have TO SEQ nm abstract of this title
and aftor ia given 1t TO him the next day
there'd come a bill. TO looking at abstract. SO |
many dollars.', I've, paid TINT man more than
the Ilolund Trust Company Our connection |