The Saint Paul globe. (St. Paul, Minn.) 1896-1905, 1901-06-18
4
5 Minneapolis News. ;
WORKED A BIG SN|NDLE
AMERICAN MINING AND INVEST
ME2NT COMPANY IS
BANKRUPT
ASSETS LESS THAN $1,000
Face Value of Stock Sold Amounted
to Over $I4,OOO,OOOS but
Nothing Is
Left.
ASSETS LESS THAN $1,000

The American Mining and Investment
company has gone into the hands of a
receiver. At the hearing, in connection
with the quo warranto proceedings be-
gun last week by Attorney General
Douglas, which was held yesterday
morning in Judge Ponds court, it devel-
oped that the company was nothing more
nor less than a gigantic swindle AL
though the company has sold stock, the
face value Of which aggregated $I4, OO0. COO
and has melted TO it's promoters profits
amounting to $4,000 its assets at the
present time are less than $1,000. Tho
company has not even a clear title TO its
Office furniture. It's property at the al
legged mining claims in South Dakota and
other states are practically worthless.
The attorney general and his assistant
Charles w. Somerby, appeared for the
state, and Frank NJ Wilson, OF Red
Wing, and ]. Van VaLoenberg, Of this
city, for the company, at the hearing
yesterday. The latter admitted that the
company was unable to pay Its just debts
and the following stipulation was enter
ed into:
Whereas. The American Mining and
Investment company, the above-named
defendant, Is not able to pay its just
debts and liabilities and is, and must
remain, wholly insolvent; and,
Whereas, The said defendant win be
unable in the future to exercise any Of
its corporate rights, privileges and fran
chiseS; and,
Whereas, The defendant, for the pur-
pose Of this action, admits that It has
performed acts not conferred upon it by
its articles of Incorporation, and has
without fraud exercised privileges not
conferred upon it by law;
Now, therefore, 1t is hereby stipulat-
ed and agreed by and between the parties
to the above-entitled action, that the re-
lief prayed for in the information on file
IN said action may be granted by the
court, and that the charter of the said
American Mining and Investment COM
pany may be adjudged vacated and the
existence Of the said corporation be an
nulled.
1T is further stipulated and agreed by
and between said parties that the court
may appoint receiver to take charge OF
the property, moneys and effects Of said
defendant. with the usual powers to ap-
ply the same to the payment Of the Just
debts and liabilities of said defendant"
The method by which the company's
patrons were swindled was a simple one.
The American Mining and Investment
company, with capital stock Of $40, CO.
was first Incorporated in this state for
the purpose Of doing a general brokerage
business. Later the promoters OF the
first company went to South Dakota
where they organized and incorporated
the Kettle Curlew, the Boundary Camp
and the Queen Bee mining companies.
whose capital stocks aggregated $50, 900. -
600. This stock was disposed Of by the
American Mining and Investment COM
pany acting as agent. After the stock
of these companies had been disposed Of
the promoters set to work to do business
on a grand scale They organized the
Union Consolidated Mining company, and
in order to do away with the expense Of
frequent interpretations, capitalized it to
the extent of 500, 10000 Just as this
stock was being put on the market the
states attorney stepped IN with his quo
warranto proceedings and put an end to
the company's existence.
Most of the victims live in Minneapolis
and it's vicinity. and some OF them lost
several Thousand dollars. The matter
win probably be given an airing before
the grand jury when it convenes again
next month
Charles P. Fowler and r. g. Koliner
have been suggested for the receivershiD.
The appointment will be made today