The Atlanta constitution. [volume] (Atlanta, Ga.) 1885-19??, 1903-11-23
THE 500 CRASH.
How the Sad and Sensational Break
down Began.

bad management, incompetency. too
much money and perhaps stock jobbing
brought about the ruin of the great
Consolidated Lake Superior Company.
which was capitalized at sll7, 900 900. and
into which eastern investors put $780,
600. 900 in cash, No other explanation
of the crash that occurred early this week
is to be found here. where the properties
of the company are looked upon as in
vestments that in the future. under eco
nomical and progressive development
may earn something But as regards
the past and the present it is clearly the
pans OF another Napoleon of finance
have ended in another waterloo Of
finance And it is the old story s re-
CARDS the losses--they fall on the credu-
lous investors led W 10 the brink OF ruin
by a plausible promoter who had visions
OF developing an Industrial empire, but
whose plans were out of all harmony
with sound business practice
There are more Important losses. so far
as this community is now concerned, than
those to the stockholders. More than
5000 900 Is owing 10 the thousands of
employees Of the company in mines iron
works. lumber CAMPS and railroads. For
a month ard a hail no Wa ges have been
paid and the desperation OF hunger has
seized many of these men, remote from
possibilities of other employment ara
men have time checks which are worth
less at stores or banks There is much
bitter feeling gainst me company among
the Michipicoten miners. who have been
coming into this town for several days,
and unless some definite arrangements
are made for early payment Of the wages
due trouble is almost certain to follow
According to the miners statement they
have been encourage to buy their win
ter'S supplies from the company stores.
These
the mines. The miners transportation
from the mines here has also been de-
Quoted by the company. so that few Of
them have checks far more than 825
Thee is some hope for the men In the
statement OF Premier George ". Ross. Of
the Ontario government that If the wages
due are not paid to the employees Of the
company by next Moaaay he VIII with
hold all certificates Of land grants due
the company o. account Of the construT-
ton al tbs Algoma tsatral railway The
80 miles already oEht would entltis
the raj. way to 1aout 600 COO acres.
IndGstriany the collapse means the
abandonment OF high hopes entertained
hV thousands of residents of northern
Michigan and the adjacent province OF
Ontario. Under the aliuring plans Of
Francis r. Clergue, the promoter Of the
enterprise, al this region vas TO be made
the greatest mining. wood-puip making
and manufacturing district in the world
Al the 500 great power plant was con-
structed, TO develop $4,000 horsepower.
With one OF the most expensive equip
inents in the world the work costing
So 300 600, Into the deVei0pmeht o. tue
companys property the credulous inves-
tor poured millions, Wlich We're spent in
tha widest fashion under the direction
of Mr.. Clcrgue
Then came the crash The directors
we're forced to admit that they could not
paw a loan or SIS $50 900 three months
overdue and Speyer & Co. the New York
hal
of the companies subsidiary to the Con-
solidated Lake Superior company an
nounced that the colL4ter-d would BIZ sold
At public auction October Meanwhile
q receiver for the COMPANY mas oeeH ap-
pointed, 4. f. t'rankenA3l, IT. pfesi.
dent of the Thomas Iron Company OF
Easton Pa. On behalf of the receiver
Attorney Bickneu. OF Toronto, has ar
rived here. and Is now III charge of the
company's local affairs
Mr. Clergue also IS here He Is full OF
rosaate promises for tina guture and talks
much Of English captal that is 70 de-
yelop his enterprise to It's fullest posi-
oiities as soon as the present trouble.
which he ascrioes to 'fthe unexpected
continuance OF money Dressure In New
York" Is over He asserts that only
fraction Of the capital Invested has been
earning money. and nov Inc Whole plant
e; ready TO be revenue pr0dNS4ng. There
is faction here thai sinl believes in
Clergue. but the greater number OF those
who know him and his enterprise look
uDon him as the source OF the WtAs,le trou-
be through his reckless unbusinesslike,
extravagant management
Where did the money that has been
spcnt bv Clergue go tor 4 good part of it
went into the water power development
mimi. millions more were spent for docks,
wharyes and railroads For nearly six
,,oarn ,ho Satt1t SIZE Nqrie region has
Sotad Take si1perlor Company There is
+,1a, 49, 70 chnvy sor ne money. the