The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1898-02-04
CRADLE AND SILVER.
(ConcIuded from Ftrnt Page.l

Concluded from First Page.)
| Kurtz, formerly of Kansas City and
Omaha, and now of New York. The prin-
cipal investors in the speculations of the
/ Jersey, Connecticut. Massachusetts and
| New York. Connecticut furnishes the long
est list. although the amounts will be
| In that State a specially vigorous enort
| was made to interest small RNlderS to in
| vest. A large number of school teachers
| in many of the leading towns of Connecu-
| cut and Massachusetts, and maintained in
| lavish style while the stocks and bonds
| were being disposed Of Money was not
| required for the transfer of stock in any
| Of the enterprises If good notes were TO pe
| had, and as a result to-day many people
| find themselves in straitened circum-
| stances by being compelled to meet notes
For many years Mr.. Cradle enjoyed
! friendly relations with some or the
! Western officials of the Chicago, Burlington
| & Quincy Railroad. So close were these re-
| lationS that he was let in on the ground
| floor for town sites when the company ex-
/ tended its lines to the Black Hills. He went
! ahead of the builders and secured the lana
/ where the company was to locate IT'S sta
| tions from one end of the extension to the
| joined-the line to Deadwood and the ex-
| tension, and here it was deemed certain
| that a good-sized town would go up. Here
| the town of Edgemont was lald out. mere
| was stone in the vicinity and ne conceived
| the idea that that town should be the great
] MISUNDERSTANDING point OF the COuutly III
| grindstones. He forthwith organized the
| Edgemont Stone Company with capital
| of $25O.000, and spent a large sum IN Dullu-
| ing the plant for the making OF grlndStones;
The town needed buildings He organized
| building syndicate, got a large amount OF
/ Eastern capital into it and began putting
| UP buildings right and left along in the
business streets of the place. Most of the
| buildings were rented, and it is claimed
| that this part Of a scheme for making
metropolis of Edgemont is not bad one II
| it, too, had been properly managed Inc
! buildings are there, and If the title had NOT
| been alienated by mortgages, the owners
| of the stock in the syndicates should nave
| been able to realize something for the
| money which they put into 1t.
with enough business for men to look
| after properly, Mr. Cradle did not yet have
| enough to do, for he started the corstrucS
| ton of smelter at Edgemont, which ne pc
| lieved to be the beginning of one of the
| greatest smelling plants in the West. The
| smelter is not yet completed. but 1t repre-
| sents an outlay of at least 100000. In 1896
| Mr. Cradle brought into existence the Union
| Hill Mining Company. For a number CT
| years he had been accommodating mining
claims in the Black Hills district. When he
| had some fifty of the claims he thought
| 1t was time to float company and py
| getting Eastern capital invested, he might
| be able to do something with the properties
which had tied up a good deal of his ready
| money. Accordingly he gave several ex-
| cursions out to the Black Hills from Chi
| cago and Omaha about two years ago,
| and the claims were carefully examined by
! were near the great Homestake mine, which
| had turned out millions for The late Senator
| Hearst and his associates.
THE financial operations leading to the
| formation of the Union Hill Mining Com
pany were somewhat peculiar. 1t had
Cradle received $1,SO0,OOO in payment for
| the fifty claims which he decided over to
| the company. The remaining $2000O0 worth
| of stock was held in the treasury and was
| to be sold and the proceeds devoted to the
| opening of the mines. Mr.. Cradle went out
| to sell his stock. He gave away fair per-
| centage of it to get people interested in the
| company, and sold about $1,000 900 a. prices
| ranging from 50 cents on the dollar down:
| brought into being another company, which
| he called the Edgemont and Union Hill
capital stock of IS. 100000. Then gradually
| the property of the first company was trans
| ferred to the new corporation, and it's capt.
tai stock increased to $e000009. OF this
amount Mr.. Cradle took 81, 100000 and $780,
coo was left in the treasury. The original
| plan was continued by which the treasury
| stock was to be sold and the proceeds de-
voted to the development of the property.
| by this time many people of prominence
| in the East had been brought to point
where they We're not only interested in the
company, but permitted the use of their
names on the list of officers and directors.
| MIR. Cradle was enabled to go forth with
| the following formidable list of capitalists
who vouched for the prospectus of a mining
scheme: Officers-President. Robert e. Pat
| tison, president of the Security Trust Com
pany of Philadelphia: vice president. Ben
lamin Tracy; ex-secretary of the ri, United
| States navy, New York; treasurer, Thomas
| Bradley. Philadelphia, director of the Sc
curity Trust &onipany Philadelphia; secre-
tary, George A.>f'letcher, Philadelphia, mer-
chant and director of the Union Trust Com
pany; directors. j. e. Andrus. New York
city. manufacturer and investor; Joseph f.
Crater. merchant and director First Ma
tional Bank, Easton. Pa; Francis G. Cradle,
Omaha, president State Bank; Philip 5.
Hortz Philadelphia director Southwark
iron manufacturer; w. +. Kelly, Philadel-
phia, investment; BENJAMIN Butterworth,
A ruI,a Nom
York, builder and contractor; w. K. Kurtz,
New York; j. Edward Mastin. New York,
banker: c. S. Middleton, M. D.. Philadel-
phia; Thomas Bradley George A. Fletcher,
r. T.. Pattison, Philadelphia; Benjamin F.
Tracy, New York; John p. Searles New
Russell Hall. president of First National
| Bank. New Canaan, Conn"
while Cradle was out selling stock, work
was being pushed on the Black Hills claims,
and everything seemed to be booming. AS
a further inducement to get people to put
| their money into the stock of the company
a letter sent out signed by John Il.
Searles, saying he had entered into
agreement with Mr.. Cradle to erect smell
ter at Edgemont. Mr. Searless position as
| the executive head of the Sugar Trust added
| great weight to the standing of the COM
pany. 1t was at this time that the prom
nent citizens who had loaned their names
so freely to float the enterprise began to
realize the position in which they would be
placed in the event of its collapse. At
meeting of the Philadelphia capitalists it
was decided to take heroic measures.
Cradle was turned out OF the management
of the company. and ceased to have any
thing to dc with, its affairs. The sale of
stock was stopped so far as the Philadel-
phia people could prevent it. An executive
committee of five members was chosen to
look after affairs. W. X. KurtZ de-
posed as secretary. To prevent the APP
pontment of receiver and q wping out
of the interests of thousands or more stock
holders. it was determined TO float bond
issue for $500O00 and the proposition was
brought before the annual meeting of the
stockholders in jersey City Jan. u. Up to
last Saturday only $3.50 900 had been sub
scrbed but it is believed that the bond
subscription will be successful and the prop
erty saved to the stockholders. in which
case considerable money, will be expended
in further development work
"rhe new people in control of the COM
pany it is said, will take legal steps to
compel Mr. Searles to build the smelter
Thus in the end there may be some re-
turns 1t is said that Cradle has not been
able TO sell all Of the S4SG0,000 stock and
that a considerable part of it was pledged
for loans.
WHAT PHILADELPHIANs SAY.