Richmond dispatch. [volume] (Richmond, Va.) 1884-1903, 1894-12-19
CARNEGIE COMPANY.
ACCUSED OF FRAUD ey WREckINc A
MANGANESE NINE.
II was Done. AZ Alleged. In Order to Get
Controi--starti,wg Charges Before
the Ape late Ceert
New York IIerald.l

(Ncw York HeraiuD
In the mountain Businesses Of Virginia,
In Augusta county. twenty miles from
Charlottesville, lies manganese mine.
reckoned one OF the largest In the world.
rhe simple country folk know that during
n period OF eight years IL was the centre
OF activity. They call Il an "ore mine"
IN the neighborhood. The shaft Ia partly
nlied up with rubbish now. The sheds
IN the neighborhood are deserted. No
smoke rises from the boiler-shop. A for
tune lies In the earth's bosom there. al
though several fortunes have been taken
from a. The natives are circulating a
r,,mor that work is soon 20 be renewed;
that the northern capitalists will once
more with the magic touch OF gold meta
nnorphose the quiet countryside. The
natives have seen one awakening and
,he good results that followed. They
hope for another.
Tbis manganese mine involves re-
roarkable story, which the Herald Is
Enabled 10 present Ii is story OF war
ring capitalists and grave charges ana
% invested with some romance.
The Circuit Court Of Albemarle county
panese Company. OF which c. III. Harmon
is president. 1880 damages against the
'.n-,oa,, uonganese Company. The
basis OF this award was the damaged
condition Of the manganese mine IN
nuestion when the American Manganese
Company, Carnegie corporation, re-
,,nauished the mine 10 the virginia man
gsnese Company. The latter corporation
owned the mine. The Carnegie corpora
a
wears from the owners. The complain
ants IN the case were the Carnegies. Dut
the Virginia fury decided against them
and Official color was given the conteh-
zion OF the opposition that an attempt
10 wreck the mine had been made ny
the lessees before they relinquished IL.
THE REAL. INTEREST DISGUISED.
Tho litigation commenced in May, lS'z'
nna ,,,ontb before the Homestead strike
mas begun. but this is the first pubiicity
given the matter. Quiet little Charlo'teS-
Sllie is not prolific In sensations ana .ne
Carnegie interest. under the title OF uie
american Manganese Company was go 81.
fectively disguised that the OUTSIDE "otu
was unaware of the significance OF inc
legal trouble. Furthermore there were no
stenographic notices of the court proceed
ancs. The eight-years' lease given the Car
pegies expired in May, 1899. During the
xerm the Virginia Manganese Compah!
oas paid a royalty OF s. ton. whicn
aggregated about four hundred thousanu
tollars The net profits OF the Carhes.es'
pre said 10 have been s. ton on the
Total output or 10000 tons, or S'z"'VVo'
Manganese is an essential ingredient III
ehe manufacture Of Bessefper ana iur-
yeyized steel, and the lease was especia'iy
yaluabIe 10 the Carnegies, because OF
futn contracts
limited States Government. They also iur-
righed the manganese to other steel hrhs'
and shipped large quantities 10 Europe
The terms OF the lease provided tha'
upon its expiration the Carnegles We're "
leave the mine In good condltoh' or
No hermit the Virginians TO purchase the
machinery, hosting apparatus. ana o'ne'
accessories at reasohapie Pi
lShortly before the expiration OF the iease
the Carnegics offered 20 purchase 'e
SHINE or extend the lease. In the ranks
ss ~ mine stockholders are some Ne"
Sork businessmen. and they quickly ue-
rided that the Carnegie offer TO BUY wac
600 low. When the question or reieasins
>vas discussed the Virginia Company
insisted on a guarantee from the C"u"s
gle. That they would work the mine ~
The extent Of an arbitrary output nv
two CORPORATIONS fenced Tor auVah'aseou9
FERNS as only two corporations can ieioe:
The Virgiuians thought of the Carnes'es,
81 200 go profit 10 the former $V1V", aI4u
steeled their hearts against compromise
mn carnesles thought that $4,000 tor
s,ch, wears and no bother in making IL
svas a prettv good thing for the VIZ
,,,riaps and refused the latters terms
So the negotiations fell through. Shoiu!
nftcr the report Was circulated th"t ~
,nine was exhausted. Prior TO the reIlh-
'uuishing OF the mine TO the owners
dinand :. Ruttman. mlnihg-ehs''e.I'
.yith offices at go 35 broadway was en-
,ared hy the VirQnians TO make an ek-
s'reina,t6, of the property. 1t was while
engaged on this work that the rerhaIh-
.ble Incidents which distinguish inns
business ENHANCEMENT from all sHh'or
pnes occurred.
A TOO HURRIED DESCENT.
Nv put,man was accompanied in his In
spection Of the premises BY Thomas
,'arruthers Carnegie's foreman; mining
engineer. from Pittsburg named smith.
,yho was representing the interests OF
The lessees. and William Carnegie,
,ephew Of the multi-millonaire. who mad
seen acting as mine superintendent. AFTER
the sheds and surface machinery had
been examined Mr.. huffman suggested
that a descent Of the shaft be made. so
that the interior of the mine could be
inspected.
The quartette eHtered the cage and the
signal 10 the engineer was given. Ihe
next moment the cage dropped down the
descent OF ninety feet to the first level as
would a stone released from above. Dur
Sng the cages mad flight II encountered
an obstacle which almost threw the In
Nestigators 10 the floor.
Eye godsw said MIR. Ruttman, as he
Stepped ont when the bottom of the
shaft was reached. "That was frightful
speed. What was its meaning. and the
meaning Of the Jolt we received?"
Foreman Carruthers did not know. and
Engineer Smith and Superintendent Car
negie were equally ignorant.
Mr.. Ruttman's suspicious were aroused
by the singular descent. the obstacle en-
countered and the lack of information
among his three companions The in
spection OF the first level was begun. In
the drifts" from which the manganese
had been extracted. the way was clear
good facing was evident. and from the
indications II was clear that in these
drifts the manganese had been thor
ouShly worked out. The party returned
- the main gallery and Mr.. Ruttman
who had been In the mine before looked
et tunnel. about the mouth OF which
earth and tlmbers were piled. Beams
eung threateningly from the roof
Let's try this Drift" said MIR. Rutt-
man.
Mr. Carnegie exchanged glances with
engineer Smith. and the latter, after a
moments hesitation. remarked: Rather
Risky, don't you Think"
Wen. I'll make note OF IT," said the
"ew Yorker. producing his notebook
wen 20 In, II you WILL" said Messrs
carnegie and Smith. and the quartette
entered the sinister drift" There was
70 ume wasted there The Pickering
lanterns showed confused heaps OF beams
on the ground. Ponderous tlmbers. the
weight OF which would have crushed a
giant. menaced the hardy explorers from
the top and sides Of the tunnel. The
sarth walls had given way in places.
manganese is found In a mixture OF clay
sma gravel. and the thought occurred 10
All mat should a vein OF gravel be dis
,u'oed they would be overwhelmed. az
sHeH as II an Alpine avalanche swept
e1"h upon them with its resistless forcs
S1ahsanese III great abundance CLEANED
,lUhl the noors, the sides. the top. No
n,her could have been found 10 yorl,
.hs drfi'" for an attempt 20 do so
Nouiu nave resulted in death Mr. Il Mt
''an' VINO had not been overjoyed at the
.onsent OF his companions 10 explore tho
ia al.