New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1892-01-17
PRICE FIVE CENTS.
THEIR GOLD MINE GONE.
PECULIAR FATE OF THE SAN SEBASTIAN
MINING co.
IT HAS PASSED INTO THE HANDS OF AN ENGj
LISH SYNDICATE, BUT THE STOCK.

IL mas fASstD lNIO IHE HANDS OF AN EN05
LIsH SYNDICATE, BUT THE STOCK.
HOLDERS DIDN'T KNOW 1T.
An English syndicate has purchased the stoch
of the San Sebastian Mining Company Of New.
York, but the transfer made in such a way
that the holders ofsthc stock of the mine il IS
said, will not receive any of the money that
paid for the mining property just before the
transaction was made the other day meeting Of
the trustees of the stockholders Of the
cOmpany-seven in number-was held and
Sl,600,00O of stock was declared out OF
existence by few scratches OF a pen, and
the New-York, Brooklyn and Jersey City bus-
ness and others who invested considerable
money in the mining company may never realize
dollar their investments. The transaction
took place without the knowledge Of the stock
holders, and at the present time nine-tenths Of
those who invested their money are not aware
that the stock they possess is absolutely worth
less. Such Is tie true state of affairs, neverthe-
less The mining property in 1887 was valued on
the New.iOrk Consolidated Stock Exchange at
S0,0OO,OOO
The San Sebastian Gold Mining Company Of
New-iorl was incorporated in 1885 with q
capital stock of Sl6OO,0OO. The San Sebastian
gold mines arc situated in the Department of La
Union, Salvador, Central America, about three
miles from the city of Santa Rosa. At the time
of fhe Incorporation of the mining company such
glowing reports were sent out by the min
ing experts and others land the reports
were not much eAaggerated) that the stock found
ready purchasers and the $4,000 shares issued
were sold for from 81 TO s. share in short
time. The money realized was invested in mining
machinery. and considerable development work was
done at the mines. So satisfactory were the re-
that ftor tbo In.
corporated s. shares were valued at from $50
to S3j. This was the price quoted on the Com
scdated Exchange at that time. But as the
work progressed at the mines il was seen by the
managers that the machinery put in at an enor.
expense could not be used for anything but
surface mining. From that time on the MINING
stock began to decline.
More money was expended in putting in ad.
ditiOnal machinery, but ii unsuited to do
the work for which il was intended, and matters
became worse instead of better. The company's
resources drained and the directors
issued debentures on the property TO the extent
of 5000 900, but the results obtained by this
money were not sufficient TO keep the stock at
par and the managers of the company could not
agree as to the way of conducting the business
Of the corporation. Although considerable rich
ore was taken out OF the numerous shafts that
had been sunk, sufficient money was not realized
to keep up with the expenditures. Everything
WAS conducted on an expensive scale and soon all
the resources of the company had vanished and
it became necessary about eighteen mohths aso
to discontinue operations.
Soon after the closing down of the mines the
bondhodcrs became anxious about their 100000,
as the Mining Company could not pay the inter-
est on the loan. Wishing to know whether the
bonds they held were good or not they determined
to send mining expert to examine the properly.
Accordingly, Charles II. Dobson, mining and
civil engineer, who was until recently superln-
ten1ent of the Rico Netallurgical Reduction
Works of Rico, Col, was engaged to go to San
Salvador Mr. Dolson left New-lork on May ao'
1891. for Central America and did not return
until last August. His report shows that the
mine is worth several million dollars.
The report of the mining engineer VIII convince
tie stockholders who own the 81 10000 in stock.
which in 1897 could have been sold at from siX TO
seven times It's par value, that BONANZA mas
slipped away from them.
The bondholders did not keep the property long.
They wished TO see the mines in operation, and
overtures were made TO English capitalists. Mr.,
Dobson was sent to London 10 bring the negotia.
tions to a close, and the mines passed into the
hands of TIE London capitalists about four weeks
ago. the price of the purchase being Ell2,0OO.
The bondhodcrs il is understood, will also receive
a larce amount of the new stock which will be
issued Mr. Dobson returned on the City of
Paris on January /, bringing with him the papers
closing the deal.
George W. Brown, of Brooklyn c j. Blanvelt,
who has an office AT No. 237 Broadway; General
Steele of the firm of Steele d Conduct,
No. 237 Broadway: Judge A. Doten, Of
Hartford. and J. Stewart and Ludwig Dreier. Of
New-York are a few of the men who know about
the sale of the big mine.
Arrangements are now being made TO begin
work at once at the mines, and the men who are
now in possession of the property do not hesitate
to say that dividends of per cent month will
pe paid.
When the stock quoted at such
high figure on the Consolidated EX-
.lange i'm So. thousands of shares changed hands.
peculiar feature OF the transaction is that ths
tocl; of the San Sebastian Gold Mining Company
S still quoted on the Consolidated Exchange. SO
luictly was the sale made that even the officers
If the Exchange have not been notified Of the
ale nor are they aware of it, for among the
fock quotations published yesterday morning the
tocg of mining company that does not exist
will he found.
The Englishmcn who now have possession OF
he mines have already incorporated new COM
any and il is known as the San Sebastian Mining
0mpany Of London. The capital stock IS $780,
90, in shar'e of 81 each There are 900 shares
f preferred stock. ami it is some of this papeIs
10 said which the bOndholdcrs possess
I'M. rYf. a.