The sun. [volume] (New York [N.Y.]) 1833-1916, 1899-09-24
DUTCH INDIA GOLD BUBBLE
THE PUEBLO DECEIVED By IMPORTS
OF FABULOUS MINERAL WEALTH

Companies Formed with Capitals Varying
from 100000 to 800 900 and the
Stock Sold, but No Gold IL in Evidence
Americans Advised Not to Touch q Share.
WARRINGTON. Sept. 23.-Under the heading
Mining Bubble In Dutch India :" the State De-
partmsnt publishes a report from Consul Sid
hey B. Everett OF Batavia. Java. part OF which
10 ne follows:
Since the earliest times It has been known
that gold existed in the Islands OF this colony
In moro or less infnitesimal quantities Re
ports were started about boatloads Of natives
having come into the various settlements
around the coast with their canoes
loaded down with nuggets OF gold.
The Batavia and Soerabaya newspapers
were filled with letters and articles
written by so-called travellers and prospectors,
giving accounts OF the fabulous mineral wealth
OF the islands and declaring that they would
prove second Klondike. The next thing done
was to start exploration com panies.' with cap
itals varying from 100000 to 81 800. 900. ac-
eording to the money draw wing qualities OF the
directors and the possibilities OF finding the
gold Where the prospects were most hope
less. they were generally started with the big
gsst capital.
The money being raised and the concessions
obtained from the government. IL was con-
bidered necessary to do something for forms
mining engineers from the United States and
Australia were engaged at large salaries to
make q pretense of prospecting. Expensive
mining machinery was i'm portod, the commits
eion being usually given to some impecunious
friend OF one Of the directors, and the public
was Informed that work was proceeding.
From time to time las . rule. / noticed
when tho mining share mkfket happened
TO BE- sagGing Bit enthusiastic letters
from the engineers would arrive. giving glow
Ing accounts OF tho prospects. and then the
dentially that they had lust a few moro shares
lett. which they would DO wiin to let go at
means we're neglected. to ON induce the public to
ony; even poor haif,easte clerks, struggling
o. Or to
wi hat is the net tangible result OF all ths2 A
mum Der Of men who two years ago were on the
public il loaded With STOCK Which at PRESENT
Of an artificial boom. lots Of money has been
earned by brokers. but no gold is in evidence.
respondence with mining engineers in some Of
these CONCESSIONS. and speaking contidentially
With possibly one or two exceptions 1t can be
stated that not one OF the present mining con-
eerns in the Celebes amounts to anything. so
far as the prospects OF getting gold in paying
quantities within the next ten years is con-
Meanwhile the infection has spread to sInga-
pore and even to Holland. whence numerous
ORDERS nave Dh6n received OF late. lneTo are
Indications that the insiders here are now be-
ginning to think of unloading altogether
shares that did not cost them cent In the be-
ginning. In all this combination OF greed and
plumber l do not wish To be understood ms say
Ing that thsre are no honestly conducted I'M
dertakinRs. Even IL gold never results in pay
ing amounts, there are two or three OF these
companies that have been managed with per-
feotly honest and genuine desire to find 1t.
Il am led to report on this matter because
the operations have begun to affect American
citizens and interests. Several have been in
duced to come here under contract and in
nearly every case they heartily wish they were
sending mining men here. II 1t knew how Its
good name Is being used to boost up queer en-
terprises. think It would hesitate before send
ing any more. There was talk some time ago
OF trying to interest American investors in
these schemes. | sincerely hope the effort Will
not succeed. One OF their customs 10 o hamper
the engineers with bad or unsuitable machinery
and then lay the blame on them for failure.
ITO illustrate the spirit Of criticism OF Amer
leans which prevails here. cite an article in a
recent issue OF the SOEGbGyd CO1ndnt 1t
refers to tho petroleum situation rather than
gold mining, bat the method OF attack Ia the
came In both casea. The article contains the
assertion that the Americans are ribed not to
md oil on the Dutch concessions. Practically
all the success the Dutch have in this field is
due to Americans l would advise Americans
not to touch share. no matter how glowing
the last report; and above all not to be induced
TO come here under contract, for il a Dutch
company chooses TO break a contract with a
foreigner there is practically no reires5.'