The San Francisco call., 1896-03-07
Last of the Thirteen Suits Against
the BitImen Consolidated
Company.
THE CORPORATION BROKEN UP.
An Interesting Story of the 0rganiza
tion and Operations of the
Company.

On Monday morning next the two last
suits of the thirteen which have brought
about complete disruption Of the Btu.
men Consolidated Mining Com pany Will
come up for trial before Superior Judge
Seawell.
The history of the case is replete with
interest for lawyers and laymen alike. 1t
is the old story of personal interests ana
jealousies in conflict with business advan.
tages, but like the venerable narrative OF
love always commands respectful atten-
ton.
Thirteen suits have been instituted, tried
and all but two disposed of, and thereby
is pendent the tale. From its inception
the corporation began pace-setting stride
on the highway to prosperity, according to
the defendant directors and their attorneys.
The Bitumen Consolidated Mining Com
pany was organized in September, 1891.
Prior to that time Austin Walrath owned
productive and very profitable bitumen
mine near santa Cruz. A. c. Bassett,
Timothy Hopkins and j. A. Fairchilds
owned and operated the Consolidated
Bituminous mine in San Luis ObispO
County, together with the mines OF the
San Luis Obispo Bituminous Rock Com
though competition was lively between
these three mines and that OF j. II. Swift
near Santa Cruz.
1t was this same competition that even
tually led the controllers of the entire
source OF bitumen production of the coast
to consider the feasibility of consolidating
and keeping up rates. Accordingly, in
1891, they pooled their issues under the
corporate appeilation of the Bitumen Con-
solidated Mining Company The capital
actually invested by MeSsrs. Walrath, /,
Bassett, Hopkins, Fairchilds, Swift and
Perrin is said to have been but $500 each.
On that basis business of $100,0 900 was
done the first year. All they bad to do in
diyidually was to intrust the affairs OF the
company to a competent manager and
draw down something like SIT 600 each at
the end Of every twelve months. Five
year contracts were made with all the
paving companies of San Francisco, Los
Angeles, San Diego, Stockton, Sacramento,
Fresno, Portland, Seattle, Tacoma, Salt
Lake City and other towns on the coast.
The company agreed to deliver the rock
free on board the cars at about 81 ton,
and the contractors were willing and
anxious to enter into q hve-year agree
ment.
A happier state of affairs could not have
been conceived by any member of the COM
bine. Prices were not high and the trade
in that particular product from natures s
subterranean laboratory was as brisk as
could be desired. But personal ambition
and iealousies," so says one of the attor-
neys, .interjected discordant element,
slight at first, like the cloud no bigger than
a mans hand, but destined to overshadow
the peace and temporary prosperity of the
corporations members
"Mr. Walrath was the first to take ac-
ton, said Attorney Frank Shay yester-
day, "though the position he assumed had
nothing to do with the disorganizing suits
which followed later on. II seems that
several Of the paving companies preferred
the Walrath rock to that from some OF
the other mines. The result may be sur
missed. The Walrath mine was worked
for all it was worth. Most Of the rock fur
nished the paving companies came from
that mine, but the original owner received
no more tnan the other mem bers Of the
com bine whose mines were all but idle.
According to the original agreement, a
royalty Of 81 ton was to be incorporated
in q common pool and shared equally