The herald., 1894-03-04
TOPOLOBAMPO TAKES A FALL,
A Severe Indictment of the
COlOny's Management.
One Of Its Pioneers Calls It q Con-
fldence Game.
The Great Cooperative Scheme Fully
Dissscted and shown Up In
Every Partic-
uIar.

operative colony enterprise, and, with
others, will be interested in the follow
ing article taken from the San Francisco
Star of February Gath. 1t is written by
+. J. Schellhues OF Roseville, CAL. a
pioneer in the enterprise:
A simple statement OF facts pre-
sented by one who has been associated
with the TopolobRmpo movement from
the first is worthy of public considera-
ton, not only as q matter of general
news, but as an object lesson in social
and political science.
Early in 1886 A. X. Owen had pro-
jected q scheme to establish colony Of
Americans at Topolobampo bay, in the
state OF Sinsloa. Mexico, based upon q
plan of social and political life which he
called Integral Cooperation" 1t set
forth equity and interdependence as 9
basis; and, being a writer with vivid
Imagination, he pictured q state of
society whore justice, love and duty
secured to all whatever industry and
equity could afford.
Those writings were sent to all re-
formers and progressive and liberal
minded people. He represented that
the location he had selected was all that
could be desired in regard to climate,
coil and all other natural resources, and
that very soon a community would be
established there that would realize the
highest and noblest life that man could
attain on earth. His writings were 30
plausible and his statements 30 positive
that they attracted q large number of
most excellent people.
In July, 1886, he obtained concessions
Qrom the Mexican government) to build
railroad from Topolobsmpo bay to con-
meet with the railroads of the United
States somewhere in Texas, and also to
establish model colony on lands he
claimed to own near by. and locate 800
families thereon within two years.
In August, 1886. Mr.. Owen took ont a
charter under the laws of Colorado to
carry on a great many industries in
Sinaloa, Mexico, and to do business in
New York and elsewhere, naming the
fret board of directors in the charter.
In consideration OF benefits to Mexico
by establishing industries in the repub-
lio and developing the country, Mr.OWen
was granted bounty of $500 for every
family he brought in and who remained
two years, and $50 for every single adult
who remained for the same time in his
Uut buobO UQunblo6 W6T0 W
be deducted the duties on goods import
ed; yet as almost everything needed in
the colony-such as machinery, pro-
visione, etc.-were exempted by the
provisions of the concession, very little
duty remained to be paid.
The corporation that he chartered was
named the Credit Eoncier company,
with a capital stock of 81 200, 900 aud
$40 o share. Up to this time over 49,
000 shares have been subscribed for.
An itemized report WAS made in May,
1877, in which about $46, 900 were re-
ceived from the sale of stock and bal
snced by expenditures, since which
time no report has been made by the
treasurer, although over 5000 shares
have since then been sold and paid for.
So far, with the exception of the fnan-
cial reports required by law, everything
seemed to be fair and honorable, and
the colonista who went to the promised
land had so much confidence in OWENS
philanthropic intentions that they were
10th to suspect anything wrong in him.
Now let us see how thia magnificent
scheme panH out.
At the fret meeting of the board OF
directors, after organization. in which
Owen was made president, the board, by
resolution. vested the whole power OF
the board in Owen, to act at all times
and in all places for the company until
the next regular meeting of the board,
which depended on the call OF the presi-
dent, and never took place. Oonse-
quently, Mr.. Owen has exercised abso-
lutte control over the company and man
aged its affairs ever aince its organiza-
tion.
He has been careful to have reported
to the Mexican government every family
and single adult arriving at the colony,
Over 200 families have remained in the
colony over two years. and more than
twice as many single adults. The goods
imported are all bonded, and for colony
aud private goods at least $4,000 in money
belonging to individuals depositing it
with the treasurer for the purchase OF
land and q vessel have been taken out
and deposited as security for the bonds.
Mr.. Owen can realize money by his
SCENE in three ways, one being by the
bountles above specified Three hun
dred families would be 100000. and
$32, 900 for single adults. In circular
to capitalists he says these bounties are
paid to him in cash.
The second source OF realizing is the
sale of shares of stock. Since any report
has been made st least 5000 shares have
been sold. In addition to this, $50 ia
from each colonist for per
mit'' to go to the colony.
The third source of revenue to him is
the sale of income bonds, issued by a
organized on the basis OF his
railroad concession. In June, 1890, Mr..
Owen obtained q charter in his own
name to build railroad as before men
toned. The company he organized was
to issue bonds (6rst mortgsge) of $10, 900
q mile ! guaranteed dividends OF per
cent on stock of $40, 900 q mile; stock to
hold the franchise Ownership of the
road) $4,000 mile, and $4,000 of in
come. bonds, which Mr.. Owen was to
take for building the road. He now goes
to work to convince the public that as
soon as soon as 40 miles of this road are
b1ilt it will pay all operating expenses
and repairs. per cent on the first mort
gage bonds, 5 per cent on guaranteed
dividend stock, and per cent on the
income bonds. He says:
After 10 miles of road are completed
the bonds will be sold at $50 per share,
and when 20 miles are completed, at
$85. The bonds will be at par as soon
as per cent is paid on them, and this
should be done as coon as wa complete
the 40 miles to Vegaton"
Again he SAYS: This frat section
(32 miles) of railroad will give buainaaa