The evening times., 1899-09-23
BOGUS GOLD ENTERPRISES.
Warned Against Invest
ing In Dutch India schemes.

py the state department from United
States Consul Sidney B.. Everett at Bata
via, Dutch India, the reported fabulous
gold finds in that country are utterly false.
In commenting on the matter, the consul
says: Since the earliest. times, it has
been known that gold existed in the ISL
ands of this colony in moresor less infini-
tesimal quantities. Reports were started
about boat loads of natives having come
into the various settlements around the
coast with their canoes loaded down with
nuggets of gold. The Batavia and Soera-
baya 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 'ex-
ploration companies, with capitals varying
from 100000 to $1,5Oo,000, according to
the money drawing qualities of the direc
tors and the possibilities of finding the
gold, Where the prospects were the most
hopeless they generally started with the
biggest capital. The money being. raised
government it was considered necessary
to do something for FORMS sake to satisfy
the stockholders, and expert mining engi-
neers from the United States. and Australia
were engaged at large salaries. to make
a pretence of prospecting Expensive min
ing machinery was imported the commits
sion being usually given to some impe-
cunious friend of one of the directors, and
the public was informed that work was
| iypa to in1a a a
when the mining share market happened
to be sagging a BIZ, enthusiastic letters
from the engineers would arrive giving
glowing accounts of the prospects, and
then the directors would go around whis-
pering confidentially that they had just
few more shares left, which they would be
willing 10 let go at point or two under
the market as a favor No means were
neglected TO induce the public to buy; even
poor half caste clerks. struggling along On
pittances of $40 a month or less.- and gov
ernment school teachers were persuaded to
invest their savings.
What is the net. tangible. result OF all
this? number OF men who two years ago
were on the verge of bankruptcy, have made
fortunes the public is loaded with STOCK
which at present happens to be selling
pretty fairly on account of an artiiicial
boom, lots of money have been earned by
the last year, / have been in direct corre-
spondence with mining engineers in some
of these concessions, and speaking conf
dentially to me they do not hesitate TO
tell the truth With possibly one or two
exceptions it can be stated that not one OF
the present INNINGS concerns in the Cele-
bes amounts TO anything, so far as the
prospect of getting gold in paying quanti-
ties within the next ten years is copcerned.
glra ,1f n
of the world goes so far as TO say that they
never will get gold in any amount. Mean
while the infection has spread TO Singa-
pore and even to Holland, whence numer
Gus orders have been received of late.
There are indications that the insiders here
are now beginning to think of unloading
altogether shares that did not cost them
cent in the beginning.
In all this combination of greed and
plunder, do not wish TO be understood as
saying that there are no honestly conducted
undertakings. Even if gold never results
| in paying amounts, there are two or three
of these companies that have been man
| aged with a perfectly honest and genuine
desire to find it. The Dutch, while good
agriculturists and traders, are not good
| inanciers, and in the long run ii is TO be
| feared that the honestly managed concerns
will, when the bubble bursts-as ii ineviia-
| bly, must some day-fare as badly as the
out-and-out swindlerS. ----~->--9
81 am led to report on this matter be-
cause the operations have begun 10 affect
American citizens and interests Several
have been induced TO come here under
contract, and in nearly every case they
heartily wish they were back. One unfor-
tunate man has 500 square miles of the
densest tropical jungle to explore. l leave
it to expert mining men what sort of care
F,l inc nan ha md has
conditions. He is further hampered by
ridiculous directions from the managers in
Soerabaya
Another American employed by .one of
| these exploration companies, was given a
worse than worthless assistant ,Sand on his
complaining that he was unable 10 get
along with this man, the directors prompt
ly broke the contract and declined 10 pay
him his salary any longer. He is now
suing for breach of contract and salary due
but the laws here are very onerous for
foreigners who engage in litigation, and il
is unlikely that he will get his rights
AN important Chicago firm has been
sending mining men here. If it knew how
its coed name is being used to boost up
queer enterprises. / think it would hesitate
before sending any more. There was talk
some time ago of trying TO interest Ameri-
can investors in these schemes; l sincerely
hope the effort will not succeed. One of
their customs is to hamper the engineers
| with bad or unsuitable machinery, and then
| lay the blame on them for failure. In one
case / know Of petroleum motor was
supplied, and 500 tons of coal were sent
up to run it with. Needless to say the
coal merchant was friend of one of the
directors. In another instance, a lot of
new, but quite inappropriate, machinery
Il al.
below tide level, so that the water is wash
ing it twice day. The failure of results
is always laid on the unfortunate engineer,
or else on the machinery itself, whether
il has been used or not.
ITO illustrate the spirit of criticism of
Americans which prevails here, 1 cite an
article in a recent issue of the "Seerabaya
Courant." 1t refers to the petroleum sit
uation, rather than gold mining, but the
method Of attack is the same in both cases.
The article contains the assertion that the
Americans are bribed not to find oil on the
Dutch concessions. Practically all the sue
cess the Dutch have had in this field is due
TO Americans. AS / said above, prices of
shares are pretty high at present and the
public has thrown all caution to the winds.
but the crash is inevitable. l would ad-
wise Americans not to touch a share, no
matter how glowing the last report; and
above ali, not to be induced to come here
under contract. for if Dutch company
chooses to break contract with a for
eigner, there is practically no redress
AUTOCARS FOR WASHINGTON
A Company Expects to Introduce the
HOrseless Vehicle Here.
CHICAGO, ILL.,, Sept. 23.-The Siemes &