The Salt Lake tribune. [volume] (Salt Lake City, Utah) 1890-current, 1906-12-02
PUNCTURE COBALT BOOM.
Guggenheims Refuse to Exercise Option
on Nipissine Stock.

NEW YORK, Dec. Ia rapid de-
cline in the stock of the Nippissing
Mines company, n cobalt company, from
high point Of 33Isc short time ago,
to 1890 today, attracted much atten.
ton, and was without change until this
afternoon. when 1T was announced that
the Guggenheim brothers had decided
not to exercise an option held by them
to purchase 100000 shares of the com
pany's stock at $25 per share No rea.
son is given in the statement for the
decision, but Louis Marshall, counsel
for the Guggenhcims, said it. was be-
cause there had not been sufficient time
to examine the titles to the company s
property.
The par value of the stock is s5 per
share, and the total issue is 1000. 0OG
shares The stock had been traded in
very largely on the curb and has been
lender in the speculation in mining
shares. When it became known that
the Guggenheims were considering the
stock as an investment there was
rush on the part of the public TO buy,
and the price advanced sharply. When
the decline set in there were rumors
that the Guggenheims might not exer-
else their right to buy at $25, The
official statement by the Guggepheims
contains a notice to tho subscribers to
their syndicate that they. the Guggen-
helms, will assume all losses and that
the subscribers will not lose a dollar.
The statement by the Guggenheims
follows:
"On October 80 the Messrs. Guggen-
helm took an option from a number of
gentlemen for the purchase of 100000
shares of the capital stock Of the Nj
pissing Mines company at s25 per
share. They offered a large portion of
this block for underwriting 10 their
friends at the contract price, receiving
not a dollar for commissions or other
wise, They also intended to keep a
large portion Of the stock for them
selves, On November | they paid $2,-
100000 on account Of the purchase
price. In making this payment they
reserved for themselves and their sub
scribers 0,000 shares of the stock, leav-
ing in the hands of the vendors $4,000
shares of the stock as a forfeit In the
event that they failed to make subse-
guent payments.
"The second payment would have
been payable today if they had con
cluded to proceed further with the bust
ness They have now decided not to
exercise their option with regard 10 the
purchase Of the remainder Of this block
Of stock and have so notified the ven
dors. Concurrently with this notice
they have issued to their several sub
scribers the following circular letter:
New York, Dec. ], 1906.-Dear
Sir: We have determined not to ex-
ercise our option for the purchase Of
the Nipissing Mines company stock. If
you will return US promptly the certi
dcate for the -- shares of Nipis-
sing Mines company stock delivered to
you by us, we will return to you --
dollars, the full amount of your first
payment. If you have sold the stock
please inform us what you have re-
ceiyed therefor and we will send you
check for the difference between the
sums received and - dollars, the
amount of your first payment. Please
return us your subscription agreement
with your answer to this letter.
50 Yours truly,
DANIEL GUGGENHEIM.
'MURRY GUGGENHEIM.'
'The effect of this notice is that the
Messrs. Guggenheim have stepped into
the breach and have assumed whatever
losses may arise out of this transac-
ton. thus relieving their subscribers
from all obligation so that not one of
their subscribers will lose single dol
lar