The herald., 1898-02-04
in the syndicate ought to be able to re-

| least $780, 900. In 1896, Mr.. Cradle Drought
into existence the Union Hill Mining
Company. For a number of years he
had been accommodating mining claims
in the Black Hills district. When Mr.
Cradle had some fifty of these claims,
he thought it was time to float COM
pany, and by getting Eastern capital In
terested he might be able to do some-
thing with the properties which had
taken up good deal of his ready money.
| Accordingly he gave several excur-
sions out to the Black Hills from Chi
acgo and Omaha about two years ago.
The prospective mines were near the
great Homestake mine, which has
turned out millions for the late Senator
Hearst and his associates.
The financial operations leading to
the formation of the Union Hill Mining
| Company were somewhat peculiar. 1t
| had q capital stock of $2,000,0 900 and of
| this Mr. Cradle received $1,000, 900 in
payment for the fifty claims, which he
decided over to the company. The re-
manning 100000 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 percentage of it
to get people interested in the mine and
sold about s100O,000 at prices ranging
from so cents on the dollar, down. After
he had got this far along, he brought into
being another company which he called
the Edgemont and Union Hill Smelling
Company, which was given capital
stock of So, 100000. Then gradually the
property of the first company was trans
ferred to the new corporation and it's
capital stock increased to $4,000, ,O00 OF
this amount, Mr.. Cradle took 81, 1000, 900
and $l,200000 was left in the treasury
The original plan was continued by
which the treasury stock was to be sold
and the proceeds devoted to the develop
ment of the property.
| BY this time. many people of promi-
nence in the East had been brought to
point where they were not only inter-
ested in the company, but permitted the
use of their names in the list of officers
and directors. Mr.. Cradle was enabled
to go forth with the following list of
capitalists who vouched for the pros
pectus of the mining scheme:
President, Robert E. Pattison, Presi-
dent Security Trust Company, Philadel-
phla; Vice. President, Benjamin f.
lTdCys CA-oCtiStoiJ Va thc ~ ulttu states
Navy, New York; Treasurer, Thomas
Bradley, Philadelphia, director Security
Trust Company; Secretary, GA. Fletch-
er, merchant and director Union Trust
Company. Directors-J. E. Andrus.
New York city, manufacturer and in
vestor; J. F. Crater. Easton, Pa, mer-
| chant and director of the First National
Bank; John Dawson, New York, builder
| Nd fro nto ~
ha, President State Bank, Crawford;
Philip S. Hortz, Philadelphia, director
Southwark National Bank David Jones,
Philadelphia, iron manufacturer; w. F.
Kelley. Philadelphia Benz Butter
worth. Washington, d. c.; VIM. Archer,
New York, builder and contractor; w.
K. Kurtz. New York, investor; J. Ed
ward Mastin, New York, banker: c. S.
Middleton, M. D., Philadelphia; Thomas
Bradley. Geo. A. Fletcher, the Hon. Rob
ert E. Pattison, the Hon. BENZ. f. Tracy,
John E. Searles, New York; ]. Wesley
Supplee Philadelphia; Russell L. Hall,
New Canaan, Conn.,, President National
Bank.
While Cradle was out selling stock,
work was being pushed on the Black
Hills claims and everything seemed to
be booming. AS further inducement to
get people to put their money into the
stock the following letter was given out:
NEW YORK, Jan. 8. 1897.
ITO the Stockholders and Board of Di-
rectors of the Edgemont and Union Hill
Smelling Company-Gentlemen This is
to certify that l have entered into an
| agreement with Mr.. F. C. Cradle for the
| erection at Edgemont S. D., of smelt-
er fully equipped with modern appli-
ances, the same to be erected complete
| and ready for operation within four
| months from this date, payment for
same having been fully provided for
without further charge against your
company. Yours truly,
JOHN e. SEARLES."
Mr.. Searles' position as the executive
head of the Sugar Trust added great
weight to the standing of the company.
1t was at this time that the prominent
citizens who had lent their names so
freely to float the enterprise began to
realize the position in which they would
be placed in tho event of it's collapse.
At meeting of the Philadelphia capi-
talists who, like Cashier Quinlan, had
been led into bad thing, 1t was de-
cided to take heroic measures.
Cradle was turned out of the manage
ment of the company. The sale of stock
was stopped so far as the Philadelphia
people could prevent it, An executive
committee of five members was chosen
to look after affairs. w. W. Kurtz was
deposed as secretary. To prevent the
appointment of a receiver and a wiping
out of the interests of the thousand or
more stockholders, it was determined to
float bond issue for $5OOOOO, and the
proposition was brought before the an
nual meeting Of the stockholders in Jer-
sey City, January 18th. Up to last Sat
urday only 100000 had been subscribed,
but it is believed that the bond subscrip-
tions will be successful and the property
saved to the stockholders, in which case
considerable money will be expended in
further developing it. The new people
in control-of the company, it is said, will
take legal steps to compel Mr.. Searles
to build the smelter. Thus, in the end,
there may be some returns.
1t is said that Cradle has not been able
to sell all of the $4,000, 900 of stock and
that a considerable part of it is pledged
| for loans.