The San Francisco call., 1897-10-14
Five California Millionaires
Control the Destiny Of
the Deal.
A STORY OF BOOM.TOWN BUILDING.
History of Some of P. B. Cornwall's
Enterprises on Puget Sound
in Palmy Days.

Negotiations for ths sale of the Black
Diamond coal mines are in progress. A
British syndicate has cove tous eye on
the property and has made an offer of
81, OO0, 600 spot cash for il. Those who are
acquainted with the affairs OF the COM
pany operating the mines say the deal
will be consummated within thirty days.
The mines are owned entirely by Cali
fornlG millionaires, and for that reason
the local financial world is somewhat
stirred rp over the prospective transfer Of
the property to foreign syndicate. Prac-
tically the coal interests are owned by p.
B. Cornwall, D. o. Mills, ]. B. Haggir,
Lloyd Tevis and Alvinza Hayward. The
mines themselves are located in Kings
County, i'll the State OF Washington,
about thirty miles southeast of Seattle.
which is the shipping port OF the pro-
duct.
There is little story back of the pros
pective purchase of the mines by British
capitalists which goes to show that even
mllionaires are not infallible in their
judgment. There is no bigger money
maker on the coast than the Black Dia-
mond mines, yet for some years what lit
tie stock has been for sale in the open
markets has not paid any dividends. The
principal owners of the coal properties
were am mbitious 20 make millions during
the boom days in the Northwest.
Nobody who lived on Puget Sound six
years ago had the hardihood to guess how
rich ?. B. Cornwall was. On the shores
OF Bellingham Bay in Whatcom County,
he was the ostensible owner of the
whole OF the city OF Whatcom, the
county seat. and a prospective rival of
FIna ma in hn Nnr fAa
commercial supremacy of the Northwest.
Cornwall and his Black Diamond asso-
ciates possessed 5000 acres of land upon
which the greater portion of the town
was being built. They were ambitious 10
build a city, and they succeeded in doing
So though IL Is rumored at the cost of
some of the profits OF the coal mines.
Sewer and water systems were constructed
and miles of water front improved with
wharves and dikes. Millions were real zed
from the sale of town lots, but the money
was put back into the city in the way OF
m an nufacturing enterprises. \ railway
was constructed and built for many miles
into the heart of one of the richest tim Der
belts in Western Washington. This rail-
way was known as the Bellingham Bay
and British Columbia road and afforded
the Canadian Pacific facilities for an
American terminus, if it desired one.
Itmight have been only q coincidence
but at about that timo there came another
city builder to the shores OF Bellingham
Bay in the person of Nelson Ben
nett, who. having made a pot of
money contracting on the Northern Pa
cific Railroad, was anxious TO dispute the
honors of the Black Diamond magnates
Bennett got grip on lew thousand
acres of land about five miles from What
com and started the city of Fairhaven. 1t
was pretty race for a time, but In the
end the Cornwall interest won in
canter and Bennett was glad to unload his
holdings on some Montana millionaires.
The Bellingham Bay Improvement
Company, as the Whatcom townsite COM
pany was called, and its attendant rail-
way, are rated up in the millions, although
IL is proDlematical If they are very big
dividend payers just at present owing TO
the recent depression on Puget Sound.
But the Black Diamond mines have been
and are among the most valuable coal
properties on the coast
The mines were opened nearly thirty
years ago and have been worked at a
profit ever since. The company has cap
ital stock of $500000 divided into $40
shares. II the offer OF the British syn il
cafe is accepted the owners OF the stock
will he realizing double its par value,
which speaks well for the standing OF the
property IN the market
1t is understood that the Bank of Cali
the prospective transfer of the pioperty
the company, IN Its efforts 10 promote lis
townsIte and railway schemes, it is under
stood. was heavy borrower from the
bank and the sale of the properly would
leave Cornwall and his associates free 10
prosecute their other enterprises on the
sound.
The product of the mines ranges from
10000 10 1900 tons a month, most of
whicn is consumed in this city. The coal
is cons dered unexceled for steaming
purposes, and has almost monopoly
OF the coast market along these lines.
Very little Of the stock is held on the out
side. The corporation has always bsen a
close one, its millionaire owners knowing
a good thing when they had one. Outside
of the quintet of milIionaires that control
the property the only stockholder 10 any
amount was the late Thomas Bell.
None OF the directors OF the company
will discuss the proposed sale of the mines,
although 1t was generally whispered on
California street yesterday that the deal
was 60.
1t is understood that d. 0. Mills is anx-
ious that the offer of the English svndi-
cate be accepted, while on the other hand
Z. b. Cornwall, the managing director of
the property, is inclined to believe that
the property IS worth more than 81, 600, coo.