The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1899-07-03
RUINED A VILLAGE.
Residents of TivoH, N. z, Put AL
Their Savings Into a Sailed
Gold Mine.

TivOli, N. Y, July 3-Residents of this
little village on the Hudson river nave
been thrown into panic by the report
that a western gold and copper mining
company in which scores of persons
have invested, is a fraud. More than
$50, 900 has been invested in the stock
here, and half the village, practically
is facing the prospect OF bankruptcy
Everyone felt secure until a few days
ago, when the copy of a statement sent
broadcast by Governor Murphy OF Arr
zona found its way here. In this state
ment, Governor Murphy warns persons
against investing in certain western
mining stocks, declaring the companies
to be sWindlerS. Now that the bad news
has arrived, scores Of shareholders are
greatly excited and open threats are
made against the company if it fails
to redeem the money invested. SUCH
thing as speculation in stocks was al
most unknown in this village OF 1000
inha bitants until about year ago.
when c. Eberhardt, former treasurer of
the Depeyster Memorial church, after
an interview with promoters, took the
agency for the company.
Mr.. Eberhardt, who is a man of I'M
questioned integrity and large stock
holder himself, still has confidence In
the stock, but in the face of Governor
Murphy's warning, his words offer little
consolation to other holders
Shares We're first sold for SO each, the
villagers buying thousands, using every
dollar they could scrape together. The
cOmpany's prospectus told about large
dividends to come and the certainty
that the stock would greatly apprec-
late in value and many lost their heads
with the dazzling prospects Besides
this, the shares were handsomely en-
graved and were totally unlike anything
seen in the town before. Dividends were
also paid regularly, and the investment
appeared perfectly safe.
All at once, a few months ago, the
price of shares was raised to So. In
stead of keeping persons out it only
4 a n
many doubled their holdings, while 9TH
ers were persuaded to buy 1t was be-
Heved the stock would soon jump to $40
a share, yielding a large profit to pur-
chasers at former prices.
No such chance to make money cas-
lily had ever come to TivOH and many
workingm who make up the bulk Of
population, mortgaged their little prop
critics to the limit and plunged. To add
to their feeling of security, Mr.. Eber-
hardt made two trips to the mines with
a party from the village and returned
with most satisfactory reports.
It is now alleged that Mr.. Eberhardt
saw a Salted mine. No one questioned
that he acted in good faith. but this is
no consolation to dozens of hard work
ing men who expect the savings of years
to vanish beyond recall. Lawyers have
been consulted and steps are being
taken to learn Just where the company
stands financially and what it proposes
to do. If Governor Murphy is well in
formed, and it is generally believed he
EneW what ne was taking about this
I Village will experience poverty such as
il has never known.
Outside of a few wealthy residents,
including General J. Watts De Peyster,
whose home is in this village, $50 900
represents nearly all the money owned
in town The cash given up for shares
Of stock has been shipped away, but
the proud feeling of being interested in
a gold mine has lost all its romance
Doctor Barton, a prominent physician
in Duchess county, who invested a small
amount in the stock, has offered to sell
his shares at auction, giving the ex-
posure by the governor of Arizona as
his reason He declares that the prin-
cipal movers in the scheme must show
that they have put honest dollars into
the mine or they will be branded as
SWindleFs.
Other holders would be glad to sell
their 'gilt-edged shares at a great
sacrifice if they could find purchasers,
but a few still have faith in the mine,
despite Governor Murphy's warning.