The Seattle post-intelligencer. [volume] (Seattle, Wash. Terr. [Wash.]) 1888-1914, 1893-07-24

that 10 had just beea advised that his
bsothsr Frank hAd guaranteed the interest
Of 81 il share for ten yessA He seemed
pps 81 think much Of II. but said thas
Ancs :H hsd ben done it muss stand.
Wbess Questioned n the Pacific bank could
be siss ND that way By the act Of their
cashier. be said again that IL would hare
70 Be carried out
The .rue invarsness Of the deal ras out
lined in IA apocrypbai sort Of way By
Frank Y. Mcdonald on hts return home
from she East. lie admitted that the
gusraltee. pledeinE the faith OF the r.
csfc link 20 500. 90. had been gwen He
then tainted out how such deal might Do
work.a without the least danger 70 the
bank. The bank. he said. might keep con-
tros OF the issue II the stock. paying u ons
only a.s the money VAS paid in. The tank
might then hold ous $50 > share, handing
over "a to the company, whose man
ayers might b satisfied With that sum
for essh share. In this way the bank
the wse of 10000 for the period
Of tbs guarantees. The coal company
woussf receive $so.o 900 and would be salts
Ted with il. Mind you, I do not say
this is the deal" added Mr.. Mcdonald.
''bnt say il might BE- DONE" The een-
tsemza 70 whom these statements we're
inside sas 20 dumfounded that he pressed
Frame bought no Alaska Coal Company
stock. Whether many OF these guaranteed
bonds have been sold in France 10 not
knows. but IL 10 not likely IL they were
not ssi5d before the ans wers TO the inquir.
les resehed that country. Sufficient time
has nss. elapsed for returns.
Ii the Alaska Coal Company - not
total failure every man whose judgment 10
worth having on the subject Is mistaken.
The egfiier suspicious ~ to the absence OF
title sssd the worrhiessness Of the deposit
ali see.I, To be true. Even il the coal y a.
the hsss In the world, IL could not be
miner in that cold and dreary country
and slapped here At figure 20 sell IL at
profit II could not compete With the
Bound product and the operations must
result n absolute loss. '.ft 10 almost in
comprehensive that . business man
would 20 into . scheme on land TO which
title ss impossible. said financisr last
evening". "but the McDonaid boys reversed
the wssoie system OF banking, aud with
them sil things were possible"
Nothing but failure Was TO Be expected
In the light Of the previous career OF the
chief nsanipulators Of the enterprise. East
man. si,c president. first showed up here
~ travelling salesinan for Burgess Il God
dard sssme years ago. In 1887 he became .
memtar Of the tirm of Eastland h Dan.
ner, dealers In crocksry. glassware, etc.
This house started with . cash capital OF
$3.50 equally divided between the two
partners. In 1ssS the firm was changed.
John Fowler coming in and banner re.
Easliaad, Fowler 4 Co.
The new partner had money. He had
besides q ranch OF l60 acres near Benicla,
which he valued at $4,000. This land he
turne,s over to the hrm as . part Of its
capita, and the firm promptly conveyed
1t to William Burgess. Of Burgess 4 God
dard. she old employers OF Esstiand, the
New Cork jobbsrs in crockery and glass
ware. 81 security for goods.
The new firm lasted two years and then
made bad break. In December, 1880. it
made an absolute bill Of sale Of all its
assets TO Burgess q Goddard. The liabii.
ties " ere $40, 900 and the nominal assets
$70.OGs. The members OF the firm set up
the cisim that the conveyance OF the a.
sets wsis for the benefit Of oil the creditors.
Goddssd claimed that II was an actual
transfer for the individual benefit Of his
firm. AZ he would not disgorgs. the firm
filed ,s petition of insolvency. The assign
ment was set aside and J. II. Jeliett. an
attorney, Vas made assignee and wound
up this business. The firm paid scarcely
anything. II Was then that Eastland be-
gan his mining operations
Fcwier's tate was sad one. He also
schen;ss. bat went steadily downward and
in Mach last blew out his brains in this
city. IL is believed that business reverses
had rstuch to do with IT, He had como
from t;an Antonio. Tex. where his father
was a famous gambler. and for . time he
Was III the business with his father, though
he has . .air reputation there.
Decker. the treasurer of the coal COM
pany was also IN the employ Of Eastland,
Fowler 4 Co., but got out before the crash.
He wSnt into business for himself on Sac
rameuto street subsequently and made q
tsrriiss break, his assets being in the hands
Of Jules Cert.
The=e men were in financial way ready
for Just such q scheme as the Alaska Coal
Company, and they evidently found the
McDiaald boys easy game to work. To
what extent they did 30 will not b known
unIess the Pacific bank finally goes into
liquic:ation. In the meantime the stock
hoideSs will carry the Alaska Coal Com
pany anto the courts.