The sun. [volume] (New York [N.Y.]) 1833-1916, 1906-12-02
DEAL Is DROPPED.
Continued from First Page.

q, 500, 600 and received 40, 600 shares OF stock,
they paid 82H a share. On the day they
exercised their option the stock sold up to
33jS, it's high record price. From that point
IL has declined steadily until this week, and
violently this week, 70 a closing at 1917
yesterday. The difference between the
actual purchase price and yesterdays
market price would mean a loss Of about
81 200, 700. but it is not 70 be presumed that
the syndicate stock has even up to this week
remained TO any large extent unsold.
Another feature OF the transaction that
lifts it above the level Of the ordinary min
ing deal is that the sellers of the stock as
well as the buyers are men of high repute
and financial stability. T.. C.. Converse In
president of the Liberty National IA and
a director in the United States Steel Cor
p~oration and a score of other well known
companies and financial Institutions. Am
brose Mcneil is president of the Intema-
tional Nickel Company. Mr.. Earle and Mr..
de Lamar are not 80 well known, but each
is prominent in his line, the former as a
dealer In metals and the latter as an owner
and developer OF mining properties. Any
suspicion that there could have been an
undue attempt on either side TO take an
undue advantage over the other was en-
tirely absent from the OF all the
parties to the transaction.
The sellers of the stock insist that the
Guggenheims were needlessly alarmed
over reports coming TO them from Canada.
They insist that their titles are absolutely
secure and take the position that they
we're justified in demanding the second
payment without delay on the ground that
a delay would have subjected the securi-
ties Of the company 10 needless suspicion.
Their attorney, William Nelson Cromwell,
explained their position In this statement:
After examination Of the Nipissing Mining
Company's property by John Hays Ham
mond and Pope Yeatman the eminent min
ing en- gineers, the Messrs. Guggenheim
sought and obtained on October 30 last from
Messrs. De Lamar. Converse. Earle and Mcneil
an option on 400. 600 shares Of the Nipissing
Mines Company. representing One-third OF
the total capital stock. The option called
for the payments in four instalments sggre-
eating $40, 600. 900. being on the basis of $780,
100, 900 for the entire capital stock. The
Messrs. Guggenheim made the first payment
under this option. viz. o.. 500. 900 in cash.
4 few days ago the Messrs. Guggenheim
advised the contracting parties that certain
rumors were afoat in Canada an ectinR the
title to some portion OF the oompany's prop
critics. The company and its counsel. both
in Canada and the mite Ell States. pronounced
all such runors and stories as absolutely
without foundation. There il no litigation Of
any character pending against the company
concerning its titles or for any other cause.
The titles Of the company to It's great mining
properties in the Cobalt district. Canada, are
held und er Crown patents. and are guaranteed
by certificates Of the Ontario Government
under the Torrens Land Title Certificates Act,
and the company Is advised by It's Canadian
counsel that the titles are unassailable.
The second instslment under the option
contract fell due this day and the Messrs.
Guggenhe m requested an extension OF time