The sun. [volume] (New York [N.Y.]) 1833-1916, 1906-12-02
NIPlSSING DEAL IS DROPPED.
GUGGENHEIMS' FORFEIT 10000
SHARES, COST $500, 900,

ing a18 q share for o 600 shares I'm
An--Time 90 Look Into TITLES First
Asked For. but Not Given-siump.
The Messrs. Guggenheim of the American
Smelling and Refining Company and other
enterprises which have made them very
prominent in the metal trades Of the world
forfeited yesterday to E. C. Converse,
Ambrose p. Mcneil, Ellis p. Earle and
Joseph De Lamar 10000 shares of the stock
Of the Nipissing Mines Company for which
the Messrs. Gugsenheim paid si,5oO.O 900 a
month ago. The loss was pocketed be-
cause the vendors refused to grant to the
purchasers an extension Of thirty days on a
second payment of Nipissing stock, the
Messrs. Guggenheim desiring this extern
sion in order to scrutinize the titles to the
company properties.
II the Guggenheims had so desired, only
a part Of the loss would nave fallen on them
selves, for in the transaction they were not
acting for themselves more than as syndicate
underwriters. A large part of the stock
they took, 10000 shares, was sold by them
at the cost price to men who rely upon their
Judgment in mining enterprises. In this
way the stock came into the hands Of more
than $50 persons. The losses Of all these
the Messrs. G~uggenheim have agreed to
stand.
Nipissing. which has been widely ex-
plotted as the richest mining discovery Of
recent years INC which has done more than
any other issue Of the year to stimulate the
unprecedented boom in mining stocks,
attracted tho attention Of the Guggen-
helms six months ago. They despatched
to investigate the property John Hays
Hammond OF the Guggenheim ExplOra-
ton Company, the mining engineer who
attained celebrity at the outbreak Of the
Boer war. Mr.. Hammond reporting favor
ably, the Messrs. Ouggenheim took an
option for the purchase Of a third interest
in the company-or for 100000 shares
ut SIS a share, Ave times the par value Of
the stock and representing a total Of $lO,-
600 600. The Guggenheims exercised their
option on October 81, n the following
dav entered into a contract whereby they
agreed to pay for the stock in four monthly
instalments Of % 500, 900 each or forfeit a
rart OF preceding payments. On the same
day they made the initial payment OF 81
200 900, sufficient to take UP 100 900 shares;
but, according to the contract, received
Outright but 5000 shares, the remaining
eO.oOO shares being deposited with the
esliars AZ security for the payment Of the
remaining i~nstalments, II is understood
that the terms OF the contract left the
ljessrs. Guggenheim perfectly free TO
withdraw at any time on the forfeit OF
the 10000 shares. ...a.
Yesterday 1t noon was the last moment
for the payment OF the second instalment
Of 81, 500, 600. The G~uegenheims asked for
an extension to examine titles, reports
having reached them that the mining
elaine of the company were TO be attacked
In the Ontario Parliament. The request
was refused. This is the statement OF the
transactions given out by Louis Marshall,
Of G~uggenheimer, Untermyer Il Marshall,
attorneys for the Messrs. G~uggenheim:
-On October 30 the Messrs. Guggenheim
hook an option from q number OF gentlemen
the purchase Of 100 1000 shares Of the
capital stock Of the Nipissing Mines CON-
at SIS per share. They offered a large
portion OF this block for underwriting to
their friends at the contract price, receiving
not a dollar for commissions or otherwise.
They also intended TO keep q large portion
OF the stock for themselves, On November
I they paid 81 SOC, 900 on account of the pur-
chase price. On making this payment they
received for themselves and their subscrib-
ers 10000 shares OF the stock, leaving In
the hands Of the vendors 1000 shares of
the stock as a forfeit In the event that they
failed to make subsequent payments.
The second payment would have been
payable to-day, IL they had concluded to
proceed further with the business. They
have now decided not to exercise their
option with regard to the purchase Of the
remainder OF this block Of stock and have
so notified the vendors. Concurrently with
this notice they have issued to their several
subscribers the following circular letter:
DEAR SIR: We have determined not to exer-
else our option for the purchase of the Nipis-
sing Mines Company stock. II you will re-
turn us promptly the certificates for the -
shares OF the Nipissing Mine Company stock
delivered to you by US. we will return you -
dollars, the full amount of your first pay
ment. II you have sold the stock, please in
form us what you have received therefor and
We will send you a check for the difference
between the sum so received and - dollars
the amount of your first payment. Please re-
turn us your subscription agreement with
your answer 70 this letter. Yours truly,
DANIEL G-U0GENHEIM.
MURRY GUd0ENHErM.
NEW YORK. Dec. /.
THE eject Of this notice is that the Messrs.
Cuxgenheim have stepped into the breach
and have assumed whatever losses may
arise out OF this transaction, thus relieving
their subscribers from all obligation, 80 that
not one Of their subscribers shall lose a
dollar"
Though there IL in the statement no men
ton of the dispute regarding titles 1t was
said by persons qualified to speak for the
~C;uaRenheims that this was the only reason
for their withdrawal from the Transaction.
They had, IL was said, the alternative OF
putting more money into q proposition OF
which they could not feel entirely secure
or OF FORGETTING a part Of the money already
invested. It was not to be understood,
these persons said, that the Guggenheims
and their attorneys considered the titles
had, but simply that there had reached
them reports involving the titles in I'M
certainty and they had accordingly con-
sidered IL prudent business to withdraw.
A long conference regarding the matter
80 h.Ld hstween aome OF the partieS in