The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1900-11-21
Paid Stratton $15,OOO,0OO for His In
dependence Property and then
Worked 1t Too Hard.
DROP IN PRICE OF STOCK
JOHN HAYS HAMMOND, THE EXPERT,
INVESTIGATING THE MINE.
Views of Mr.. Stratton, MIR. Walsh and
Others-AIIeged Cause Of Trouble
with Employees.

Hammond recently of Pretoria, has been
asked by the English stockholders of
STATIONS Independence mine to take
charge of the mine consulting engineer.
He is now in Victor to make thorough
investigation of the property. Regarding
| the recent heavy fall in the price OF the
shares he said: 1.-THE trouble with the mine
| now is that it has been squeezed to pay
| the big dividends that the company has
promised shareholders. The state of af-
| fairs has just become known to the Eng
Hsh holders of the shares, and the in
! formation has caused the present drop in
the stock" Mr.. Hammond denied that
| there had been any stock jobbing in the
/ matter and intiniated the belief that the
mine could yet be put upon a dividend
paying basis.
| Winfield S. Stratton, when questioned re-
gardng the present condition of the indie
| pendence mine, which he sold in London,
| said: 81 don't care to discuss the matter.
1 am not in the company and have not
been for months. My opinion, however,
is that the property has been worked too
hard. The management simply made
mistake in what it thought the property
| could do. 1 am satisfied the Venture cor
poration is absolutely honest in the hand
ling of the stock company.
The opinion of Cripple Creek mining men
generally is that the London company SIM
ply neglected to do the ore development
work and has drawn too heavily on the ore
| reserves for the purpose of paying large
dividends.
Thomas NJ Walsh, owner of the Camp
Bird mine, said to-day regarding the indie
pendence: 1.-The property was no doubt
worth all that was paid for 1t by the Eng
lish investors, and the management in
Colorado is not responsible for taking out
the reserves at such wholesale rate.
First-class mines are developed constantly
as the ore is taken out. 1t Is necessary to
open new bodies.
The independence mine was sold to Eng
lish investors for $15,000,000. Whatever re-
sponsibility lies in the floating of the stock
1T must be laid at the doors of the London
promoters, for the flotation came to Colo
RADIO as a surprise. OF course, no one was
entitled to any information, as the mine
was owned entirely by Winfield Scott
StrattOn, who twenty years ago was
was born. 1t was conceded that he would
not be party to any duplicity, so the sale
went through, the money was paid, and
Stratton returned to Colorado to spend the
proceeds in buying real estate, which he
has done to the amount of almost 81, 500, 900
since the sale was effected.
The mine has paid at the rate of $500
a quarter, with the belief that there were
millions more in sight to be placed to the
account of dividends. Arthur Richard, ex-
pert for the Rothschilds made the report
in spite of his reputation. he being consid-
cred one of the most reliable men in his
line in the world, 1t is said that he failed
to enter the workings of the property, and
accepted the statements of STATIONS SUI
perintendent for what he said existed in
the tunnels, drifts and slopes Richard re-
ported that there was enough ore in sight
to continue paying dividends of $4,000
quarter for an indefinite period and that
the reserves would grow richer rather than
depreciate in value as greater depth was
reached The fact that Hammond has
been selected by cable to corroborate or
expose the report shows that the Venture
company, the promoter, was taken by sur
prise, for there Is no concealment of the
object of his visit to Cripple Creek
The decline from SIS to IS per share In
the Stratton Independence mine stock has
created excitement and the English COM
pany which owns IL is severely censured.
The English investors have lost a lot of
money in Stratton Independence and there
is a general belief that 1t is played out.
men, however. believe that the mine is all
right, but that the capitalization is all
wrong. Overcapitalization is what brought
on the break and makes the whole affair
look like ock-jobbing scheme.
The miners at the Independence are
VIGOROUSLY secretive. The most rigid rules
of the management are those requiring ST.
;ence concerning the condition of the ore
reserves. Under normal conditions the prop
erty might become as dry of gold as coal
mine without provoking the miners to vto-
late their obligations. But new feature
disturbed the relations between the mine
management and its employees Wholesale
charges of ore stealing were made against
the men, and scores of the oldest employees
were cast adrfft. Such rigorous measures
aroused a spirit of hostility and desire to
retaliate. AT every corner the discharged
miners and their friends who were still en-
ployed made unguarded comments upon the
physical condition of the slopes and I'M
foreground workings
IT would like to know where all this rich
ore comes from. l never see any of it,
1.-THE best ore / have worked in to-day
would not run over $50 tom
These and similar comments were heard
and put down as exaggerated statements
inspired by spite and fll-feeling.
The strained relations eliminated in a
brief strike on Sept %, which lasted forty
eight hours. The direct cause was an order
requiring the miners to strip themselves or
leaving work. At this time the manage
ment was perfectly frank and open with
the newspaper men. The mine was suf-
fering great loss by reason of systematic
thefts. The reserves were rich as
ever. The reporters might go below and
see for themselves. But the miners were
no less frank and no less sincere. They
peatedly declared that the manager was
wrong. That the decreasing output of rich
represented the waning volume of the
higher grade ore bodies. Some volunteered
the opinion that the mine was longer
profitable and that the company would
welcome strike as a plausible pretext for
disseminating operations.
Suddenly the strike was settled by
cession on the part of the mana cement a
concession that indicated a strong aversion
to idleness and by yielding of the men on
less important questions. Work was re-
stunned and the mouths of the miners again
became Theoretically sealed. Rumors con-
tinued TO circulate, but were vague and
i'll defined
The newspaper men awaited the October
report of the manager far beyond the regu-
lar day for Its appearance, but ii was never
given out TO the local papers at least.
Hammond VIII Make Statement