The sun. [volume] (New York [N.Y.]) 1833-1916, 1908-09-27
SUT0VRR BROWN GOLD MINE
P~ETTsBURG SHAREHOLDERS ASK
THEIR MONEY BACK.

Alter A. o. Brown q Co. Had Discovered
FJHat the Mine Was No Ophir They Ne.
~ 4ufned subscriptions to Their Custe-
ASS--Now whitney's Customers Sue.
a. Suit has been brought against A. O.
Brown q Co., the collapsed Stock Ex-
change. firm. by A. M. Fuller q Bros.
OF, Btttsburg TO compel the return to the
treasury of the Santo Domingo Gold
and Copper Company Of s$S43,ooo which
was the amount of cash subscriptions
TO- the stock Of the said mining company
promoted by A. o. Brown & Co. and Whit
ney. stephenson & Co. Of Pittsburgv The
purpose Of the suit Is to enable the Pitts
burg subscribers to the Sahto Domingo
Gold and Copper Company. stock to
fare the same as the New York subscribers
who bought through A. o. Brown q Co.,
and to whom last January the firm re-
turned the money with 4 per cent. in
forest. Whitney. Stephenson d Co, in
tended TO treat their customersi In the
same way, but they failed before they
could carry out their plans
The suit has been brought In the Su-
prerne Court here. counsel for the Pitts
burg firm being John Thomas Smith Of
30 Nassau street. The santo Domingo
Gold and Copper Company was organized
In 1905 with a trifing capital stock Of
S8A, 0OO, coo, after Edward F. Buchanan
Of A. o. Brown & Co, had gone to Santo
Domingo on a yacht and had reported
that there were abundant traces Of rich
gold and copper on the property under
inspection. Whitney. Stephenson d Co..
which had been interested with A. o:
Brown a Co. in various promotions. were
taken In partnership and Mr.. Whitney
became president
The stock was considered % good that
II wasn't offered to the public. but was
sold by the brokerage houses to their
customers. In letters to their customers
the two firms said that the company n
trolled 400 acres Of land worth over $1,000
600 an acre. As soon as the company
was organized A,O00.00o worth Of stock
was set aside to sell for promotion pur-
poses and at about $40 a share the treasury
took In S6i3, 900 In q short time.
Before selling any more stock A. o.
Brown 4 Co. sent Mr.. Buchanan down TO
Santo Domingo TO look over'Nthe place
again, and he found so much less, gold
this time that he reported unfavorably.
Then the two concerns notified their
customers that sales Of stock would be sus-
pended until Mr.. Whitney also had reported
on the property. Without waiting for
Mr.. Whitney's report A. o.. Brown Il Co.
sent but q letter TO their customers saying
that our Mr.. Buchanan had the greatest
confidence in the future of this venture
and he feels deeply Inundated and dis
appointed that his friends must suffer.
but he is a heavier loser than any one else.
He takes the matter philosophically and
considers that his experience will recon-
pense him for the ~pecuniary loss {
' Not long after this both firms notified.
their customers that they would return,
between January / and is last all the
money invested by thoir customers.
Whitney, Stephenson d Go. failed q Few
weeks after they sent out their letter.
In A. o. Brown'6 Co.'S answer to the
suit II is stated by Mr.. Buchanan that
out OF the $s4S. 900 taken in. s2s7. 600 wa
spent in development and that his firm
had, returned s343, 900 to the subscribers.
Smith declared that the COM
pany paid only $50, 900 for the property,
and that only about 80, 900 was spent for
DEVELOPMENT. He said that the company
never had more than ten men on the
property and that the machinery cost
lees han 81 900.
Mr.. Smith declared that $40. Ooo 600
Of the stock was divided up be-
tween Mr.. Buchanan and Mr.. Whitney.