New-York tribune., 1906-12-02
DROP NIPISSING DEAL.
GUGGENHEIMS BIG LOSS.
To Protect An Investors IN Mine
Options. HoUeUer-

Following further severe decline yesterday
in the price Of Nipissing Mines stock in the curb
market. 1t announced late in the afternoon
that the Guggenhein interests had decided not
to make any further payments under their
option for the purchase OF 100000 shares OF the
stock at S23 a share. Rumors that they would
take this course had been persistent since
Wednesday. and the stock. which had sold as
high as u on that day. touched 1884 yesterday.
a decline OF more than 81. or 12O per cent a
share as the par value is s..
The trading in Nipissing yesterday was ex-
cited and enormous for a curb stock. more
than 75O 600 shares being sold. The other Cobalt
issues were weak. in sympathy with Nipissine.
the dealings In which nearly monopolized the
attention and efforts Of the curb brokers.
At the close of a conference between the Gus-
genheim and Nipissing Mines Company inter
ests the following statement was issued BY
Louis Marshall. of Guggenheirner. Untermyer &
Marshall. counsel for the Guggenhems:
On October 80 the Messrs Guggenheinl took an
option from number OF men Ior tne p, puIenaSe
Mines ComPany At s. share They ofersS fe ss,s
tndP Po5iqR at % OF sns SOGT p rer not dollar
for commissions otherwise They also INTENDED
on November they paid $, 10000 on account O.
reeefve for themselves and their subscribers 4Oe
shares of the stock leaving m the "aH4s f-eai, % f
event that they failed 10 make subsequent pay
The second payment would have been payable 20
day, If they had conGludNd To proceed furtaer w,n
the business They have now decided not 20 eNsr-
else tne1 oPro4 os h W' b Of stock and have 50
they have issued to their several subscribers t'e
following circular letter;
Dear Sir: We have determined TO exercise
our option for the purchase of the Nipissns Mines
If you will return PROMPTLY the ce%Ttaeatee % for for
pany stock delivered 10 you by us. We viii return
, Sog avnent If You lave sold the stock please
inform what Won have received & there[eF h ana
the sum SO received and .....-..--. dollars, the
amount Of Your first payment; .,-,r,t,, ,eresrnent
with your answer to this letter Yours truly
MURRAY CfTGGENHEIM-
The effect of this notice Is that the MessEs Gug,
genhe1 have stepped into the nTeaca ana % nIs as
transaction thus relieving their sq6scr3ers iP
will lose single dollar
It IS understood that the subscribers to the
syndicate whose obligations have been assumed
by the Guggenhens. number about one hun
dred and fifty. The Guggenheims have. as said
IN their statement. paid the first 25 per cent
instaIment of the purchase price of the 100000
shares optioned to them. s2.5Ooe0o, and have re-
/ ceved 10000 shares. having forfeited the re-
manning $4,000 shares, which would make up the
first . per cent Of the stock which they had in
/
| S62 80 a share for the 10000 shares actually
taken by them. the present market value OF
which is about $50 a share. their loss on the
transaction standing at s1,i00000
\ representative of the Guggenheims said
Yesterday afternoon that his principals were not
taking the position that the property was not an
| exceedingly valuable or that the title to u
| was imperfect. Questions concerning the title
had arisen. however. after the first payment had
/ -1.3 -l-.IH
/ the second 25 per cent payment be postponed for
| thirty days in order 10 give them opportunity TO
| look into those questions. The request had been
| refused by the vendors. and the Guggenhetns
| had thereupon taken the decision TO proceed no
| further with the transaction. No actions had
| been brought as far the speaker knew IN
/ either the United States Canada, to test the
/ validity of the Nipissing title At the office OF
/ Sullivan & Cromwell. counsel for the sellers
under the Niplssing option. the following state
/ ment was made yesterday afternoon;
| After examination of the Nipissing Mining Com
| pany's property by John Hays Hammond and
Pope Yeatmen the eminent + ing inn gfaes sasnseT o
October 80 last from Me5srs De M Lamar an converse s
Nipissing Mining Company. representing one-third
of the total capital stock The option eais6 L.. ISr
go. being on the basis of S3oOoOeG for the entire
| FIRST payments under this option. viz. $4,000 IN
|
& tae fon'TacoE M a pyatin the titie 70 some portion
| counsel both in Canada and the United States.
| pronounced all such rumors and stories as sbso.
any character pending asainst the company ,n e9n-
corning its titles for any other cause the fitles
of the company its great mine properties IN The
Cobalt district, Canada. are held under crown pat
/ tario government issued under the Torrens Land
Title Certificates act and the company IS ADVISED
| by its Canadian counsel that the titles are unas-
TTe second iustalrnent under the option contract
TsnuesI a9e ' ans Extension of time to further look
into these but the sellers conSldefSu that
they could not either IN justice 10 themselves or
/ To the other stockholders OF the company, give
| countenance 20 any question OF. the company
| they therefore declined give the extension. The
| contract accordingly came 70 an end to-day
will continue IN the hands OF the present admin
| istratiOn. whose manageIilent mas proved 50 au-
! vantageous 10 the stockholders
The Nipissing Mines Company has an author
ICED capital stock OF $21OOOO00. OF which
S6OOOOOO is outstanding. Its president is e. P.
Earle; it's vice-president is j. r. De Lamar.
! The directors are Messrs. Eagle and De Lamar.
F. c Converse president Of the Liberty National
| Bank ard the Bankers Trust Company; AM
brose Mcneil, president of the International
Nickel Company: r. NJ. Thompson chairman
/ OF the board of the same company: Richard r.
Greene. of New York; David Faskin and Dun
+ can CoulsOn Toronto, and Joseph Wharton,
PHILADELPHIA. The first four directors named
are the vendors by whom the option given
to the Guggenheims Tho CompanyS mines
produce high grade cobalt and nickel rich m
/ silver and are the eading property in the now
. famous Cobalt district i'm Canada
NipissinS stock was introduced on tHe Nr'
. last Nav, the first sales being az - I" SNARE
/ (par value so BY the end oi NtSUst tl was
+ sailing m 81 and then began a steady advance.
I which continued until few fayS after tCiooer
so when announcement wax made that The