The Salt Lake tribune. [volume] (Salt Lake City, Utah) 1890-current, 1906-12-24
HISTORY GIVEN Of
N|P|SS|NG DEAL
Guggenheims Said to Have Fol-
lowed Advice of Their
Banking Friends.
CREATED THE GREAT
SLUMP IN THE MARKET
Property Stated in Splendid
Shape, Even Though the
Values Decrease.

The Boston News Bureau has made
careful investigation of the Nipissing
situation both from the property end
and the Wall street end, and finds AS
follows. The Nipissing property, rs
' hud,'' was never properly developed
as a mining proposition. The remark
able richness of the ore found was the
marvel Of all mining men, and when
John HAYS Hammond examined the
property and figured upon the prospec-
tive ore in II 10 depth OF only loo
feet from the known % veins dlscoV-
cred, on but 10 per cent of the property
prospccted, he Immediately recommend
ed the purchase of the property on the
basis of $30,000,000, and expressed his
expert belief that IL was sure to pro
duce the selling price of the l,2OO,OOO
shares at S25 per share.
In the month of October the company
shipped out II carloads OF ore, which
had value Of between 100000 and
$75O,000, although, from the amount OF
ore actually treated by the smelters,
the net returns for that month were
considerably less, Mr., Hammond Wis
ited the property again in November,
prepared to take over the presidency
and management. ms Captain De Lamar,
president Of the Nipissing Mining com
pany. the operating company, was dc.
sirous of going TO San Francisco and
wished TO be relieved of the manage
ment Upon his first visit, Mr.. Ham
mond was accompanied by two of the
leading experts of the Guggeuheim
fo-ces, Mcssrs Yeatman and Skinner,
and they were as enthusiastic as Mr.,
Hammond. On his second visit he was
accompanied by A. Chester Beatty. who
had just returned from Europe. 1t
was then winter in northern Ontario
a al
ore dumps. and filed the open cuts. The
MANAGEMENT was down 90 feet in the
open cut on bonanza vein 10. and sam.
pies taken from the section opened
showed decreasing values as compared
with the enormously rich ores on the
surface.
This fact Mr. Hammond communi-
Gated to the New York Office of the
Guggenheims Daniel Guggenheim i'm
mcdiately communicated the fact TO the
leading banking underwriters who were
10 take large portion of the 100000
shares Of stock at $25. The matter
came at a time when the mining eX-
citement on the curb was n matter of
serious consideration on the part of
New York banking interests and Mr..
Guggenheim was advised by his bank
ing associates TO throw over the OPP
tion and take what loss occurred. 1t
current about the titles to the proper
". started by parties who had, but a
few days previous, lost through the ac-
tlon of the government of Ontario
law suit against the famous o 'BrIen
claims adjoining the Nipissing, These
rumors gave the Guggenheims an eX-
cuse for the surrender Of the option,
and notwithstanding the fact that by
such action the leading engineers of the
(uouen hahn Ernioratinn ,,mnany
Messrs. Hammond, Yeatman and Skin
ner, were put on the rack, the Guggeu-
helms could not afford to 90 contrary
TO the desire Of their leading banking
associates, whose purse had done so
much TO place the Guggenheims upon
the very pinnacle of success
When the Njpissing directors, nine
tentbs OF whom were inexperienced IN
mining, had to meet this situation. they
became panicstricken- Each tried 10
get out OF mis- stock, fearing that there
might be good reason for the Guggen-
helm action, of which they were not
spprised. Capt. De Lamar was in San
francisco, and, mis- secretary said, could
not be reached, but he could reach his
secretary. and sold all Of his stock.
+. c. Converse sold his stock. Mr.,
Wharton Of Philadelphia sold his. Col,
r. NJ. Thompson had previously sold
his stock 10 Capt. De Lamar Mt $40
per share, and later became very bit
ter with his co.directnr when the kuowl-
edge reached MIN that he had not been
advised as TO the discovery of the Bo.
nanza vein 40. which was alone known
by Capt. De Lamar when he purchased
Col. Thompson s stock. Prominent
stock interests in the company, not di
rectors. did not intend to permit the
directors to have the market TO sell
their stock. SO they began to unload
Over 100000 shares of insiders stock
was dumped on the market all the way
from $50 TO $l2. The public bought it
principally Canadian interests who
were acquainted with the Cobalt situ
alton, and were rather glad that tbe
Guggcnheims did not secure foothol6
In the camp.
John Hays Hammond and his asso