The Seattle post-intelligencer. [volume] (Seattle, Wash. Terr. [Wash.]) 1888-1914, 1899-08-17
.kOOTEAAI WATER COMPANY
NEW York STOCKHOLDERS THlNk
THEY WE'RE swIyDLED.
Pat Up %67.S72 ana ApDafently Have
Nothing % Shovs Ter Their In
vestment~rhey Are ClAAcrin9
For investigates late Consern.

Special Dispatch to the Post-Intelligencss
NEW YORK. Aug l6--With apparently
nothing to show for their investment Of
$3.50. many stockholders in the kootenai
Water Supply Company, Of wAneta. b.
c.. are ciamoring for legal investigation
OF the companyis affairA
Money poured into the golfers Of this
concern from nearly every part Of tho
United StateA, although the chief COM
claimants are residents Of New York and
New Jersey.
Mos Of the complaints are directed
against The Rev. Lewis R Streeter now
pastor Of the Williams Avenue Methodist
Episcopal church. South Brooklyn: Stuart
W. Cowan. q lawyer. 81 Mount Vernon.
and George J. GooSihue. manager OF the
company, whose present location could not
be learned yesterday.
The kootenai Water Supply Company,
according to Its prospectus. was organized
under the laws OF Artsona, on September
=. 1874 1t was capitalized at 3l0tO.fs0. In
81 share& 1ts main ONCE vas in R9ches-
ter, N. T.. and itA leased mines and prop
erty in Waneta. b. c.. the West kooienai
mining district. Omcers OF the company
were given as John r. Ssrauchen. press-
dent: H. NJ. Goodhue. vice president: NJ.
W. Rundel secretary and treasurer. and
George J. Goodhue. manager and attorney.
Directors were Stuart w. COwan. Mount
Vernon: George ]. Goodhue. John II
Strauehen. II. w. Rundel and III. ~. Good.
hue. Rochester.
According to the prospectuA the COM
psny had. under ten year lease. with
privilege OF indefinite renewal. all proper
ties owned by the Kootenai Hydraulic Min
ing Company, Including ton placer claims.
averaging eighty acres each: thres othsrs
soon TO be granted. and valuable water
rights on the Pend dOreilie river.
Promises were held out. aside from tho
returns OF the mines. Of an assured net
income Of SEQ day for leasing water and
big profits to Be obtained from the sale OF
town property.
Big profits. according to the prospectuses.
were assured by tests ut Is unQualihediy
pany's lease upon its placer elaine alone
Is Of great value"
Upon these representations many persons
invested. Shareholders who have made
careful investigation estimate tina. at least
$4,000 was paid into the company's treas
ury. A request from the ofiicers for .
payment Of per cent. assessment. how
among. shareholders. although 1t took In
Many Of the principal shareholders live
future seemed less bright than outlined In
the prospectus. William ]. DinGledinc and
George Cantrell, Of this city. and DR..
3, Noun. Vernon a were desisnated to max:
an Investigation.
DR.. Nutiine denounced the company in
unmeasured terms yesterday. He put $2s-
so into the enterprise. but seemed to care
less about his own apparent loss than
that Of others. He said he had received
distressing letters from women who had
Invested their small capital in the COM
The scheme was swindle from start to
finish," DR.. Nutting said. The company
had 10000 shares called treasury stock,
M oolA anA ta Nfcr eat
the plant was not complete After sending
a man West to investigate the situation
the directors said the company was III .000
In debt The directors then said that K
OF cents per share, money thus raised
would be sufficient for all debts. II the
debts were paid. the directors said. tho
they thought s7s.op could be realised.
They collected about Se000 from the OUT
aiders by this assessment, but instead OF
applying i pro rata 70 the debts. they ap.
been gwen. The directors themselves did
not pay the assessment.
They said there was plenty OF gold in
the company's property-miliions Of t-but
that. u by any misfortune they could not
get gold. they could sell water. and. IL they
couldn't sell water. they could generate
electricity. As = matter OF fact, they could
not do any OF these things"
George j. Goodhue, manager. testified
under oath that the plant cost about sss.-
CO.
When everything was running smoothly.
ed at the stockholders annual meeting !:
stuart w. Cowan. president. Harrison II.
Crane. secretary and treasurer: the Rev.
Lewis r. Streeter, John Dawson. William
Strachen. directors. At this meeting the
committee on representation reported that
L. r. Sreeter held s90,oo0 shares Of stock
and 8. W. Cowan f3t.0o shares. thus piac-
Inn ,z6srtP S.1 tS tt.l~ ~y.4s
II II understood that the dissatisfied
shareholders nave taken steps toward
placing their complaint IN the hands Of
lawyers. and an effort TO have District At
county. taxe action - probable.
The Rev. Or. Streeter. who Is now visit
Ing in Bely.dere. N. j.. was elected d.
rector In 1896 He was alleged 10 haya
bought several hundred thousand shares OF
the cofnpany's stock. most Of which, Il vas
reported. he had disposed Of.
DIT strester makee this statement:
MY connection with the defuuct kco-
senai Water Supply Company was thor
oughly honorable one, which I am amply
able to prove. ] never was the owner Of
any such amount OF the comrany's stock
az the published article attaches 90 my
name"
DIR. streeter said that he did not wish to
enter into any controversy about the mat
ter. He tntsmatea that he was unWitsing-
~ led into put.ns money into the com-
paSy because he thought II gave promise
Of prosecuting an honorable and success
ful business. He said ne believed the en-
serprfse would have been a success but
for circumstances over which the company
had no control. lie attached no import
anee, he said. to the representations Of
rich placer mining. but nrmiy believed
that the water power could be utilized ~
a distributing agent In connection with
electrical appliances In use all through
the region.
The SO asy shares OF stock alleged 10 have
been owned by him. DIR. Streeter said were
held simply in trust. subject to the order
OF the company. His representations To
prospective buyers Of the stock, he de-
ciared were made on the authority Of per-
SONS who had invested and who had i'm
quired carefully into the prospects Of the
company.
My advice 70 every one DR. Sffeefer
said. was, Don't invest your money until
you know what you are doing. IL would
be prudent for you 20 visit this company's
lands before making an investment"
CANADIAN SUBSIDIES.