Los Angeles herald., 1891-12-15

il
under date of October 3lst, contains the
following, which will be of interest to
those who have watched the Santa
Catalina island negotiations during the
past few years. 1t will be seen that the
English syndicate which attempted to
handle the property has collapsed and
has succeeded in mixing things up
sadly:
A winding up order was made against
| this company on August 1st last, and a
summary of the company's affairs has
| now been issued by the Official Receiver.
The unsecured liabilities are stated at
Ell, 1852, los. 3D., of which $1,000 l9s.
are expected to rank, and assets G2 ,25S
Ss. 3D. The total deficiency as regards
contributors is stated at ELS, ,744, los. Sd.
| The company was registered in Septem-
Der, 1883, and was formed principally
for the purpose of acquiring mines and
mining rights in the Los Angeles dis
trict OF California. The prospectus APP
pears to have been only privately circu-
lated The nominal capital of the COM
pany was originally 100000, in e100
shares, forty-ive of which were allotted
on October s, 1888, and the balance in
February. 1889. In August of the latter
year the capital was increased to e35, 900
by the creation OF 250 additional shares
of el00 each, fifty of which were to be
issued as preference shares, bearing in
terest at the rate OF z per cent, but of
which only twenty were allotted. The
company abandoned it's original inten-
tion OF carrying on mining operations in
California, and in April, 1883. entered
into a contract with Mr.. &. r. Shatto
for the purchase of the island OF Santa
Catalina, with the greater part of the
mineral rights over the same. The island
is situated in the Pacific ocean, off the
coast OF California, and is described as
being twentyfour miles in length, with
an average breadth of five miles.
The purchase price was fixed at
s400 900, payable in cash by
inst; ent1 extend ng over three years
from q date of the contract. Under
subsequt mt )ntracts the vencor agreed
to give the company credit for the value
of property in the island repurchased
by him, and portion of the amount 30
credited is included in an item of
920 694, lis Cd, appearing in the def
cheney account as having been paid by
the company on account of the purchase
of the island. 1t appears that sum OF
s25, 900 payable by the vendor to the
former oNI ers of the island, was secured
by mortgage, and that, owing to the
Company having made default in meet
ing the amounts due under the contract
in April, 1889, the vendor has fallen into
arrear with the payments under this
mortgage, and foreclosure proceedings
have in consequence been taken by the
mortgages. The company appears to
have disposed of portion of its prop
erty in the island to the Santa Catalina
Development company, limited, for the
cash consideration of 100000, payable
as to $4,000 in two months from
the date of the contract, and
the balance in twelve months, but only
the first sum appears to have been re-
ceived from the Development company.
In November, 1889, the company |
granted to Mr.. J. w. Stuart lease for
years from September, 1888,
of its mineral rights over the islands, in
OF his undertaking to pay
a certain royalty on the profits to be de-
rived by him from working such min
eral rights. Mr.. Stuart, who was ad-
judged bankrupt in November, 1889, is
stated by the secretary to have assigned
his interest in the lease, without the
consent OF the company, to the Conces-
sions Trust Limited, for the considera-
ton OF 100000 These mineral rights
are now claimed by a Mr.. II. Deity, who
disputes the right OF Mr.. Shatto or the
international company to have dealt
with the same. The insolvency of the
is attributed by the secretary
to lack OF sufficient capital to enable it
to complete the purchase from Mr..
Shatto of the island OF Santa Catalina.
The Official receiver is of the opinion
that there are matters as to which fur
her inquiry is desirable. and he pro-
>oses to report to the court to that effect.