New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1911-06-21
INVESTIGATES OWN MEN
Commissioner FosdiCk Learns
History of Guatemala Mine.
CITYS EMPLOYEES OWN IT
Have 100000 Stock TO Sell,
but Aren't Forcing Business,
They Explain.

Raymond Is. fOSdiCk Commissioner or
Accounts. had some of his own investiga-
tors on the carpet Yesterday in regard 10
rumors that had reached him Of their
methods OF selling stock in a mining COM
pany In which they were Interested. There
is only one more man TO examine.
Hiram ". Eastman and Charles D.
Schenck. accountants in Mr. Fosdicks Of
fee. with Willis L. Chaffee. chief examiner
in the same Office We're among the incor-
porators OF the Chiantla Mining and Smelt-
Ing Company, OF Guatemala. They were
said 10 have sold stock in this company
20 men employed in other city departments
and 10 have used their positions in the
citys employ 10 facilitate such sales Com
missioner Fosdick subpGnaed the stock
and transfer books Of the company and an
examination OF these corroborated the tcs-
timony OF the men that the only sale of
stock 10 city employees was that 10 Morris
Meyer of the Park Department.
Mr. Meyer testified that he met Mr.. Chat
fee at lunch. and the conversation drifted
TO mines that the Chiantla Company was
mentioned. and he inquired whether any
OF its stock could be purchased. and on
receiving an affirmative answer bought
200 shares par value 81 a share. for 50.
Among the other directors OF the COM
pany are Walter J. sears. superintendent
Of municipal ferries: Charles J. Farley.
chief clerk in the Dock Department. and
John NJ Phelan also OF the Dock Depart
ment Both Mr.. Sears and Mr.. Phelan told
Mr. Fosdick that no employees Of the city
had been asked to buy stock in the COM
pauy.
nv
Mr.. Eastman" said Mr. Phean. Il knew
him we'll. and although he did not ask me
20 invest. II looked 20 me ike a good spec
ulation. SO l decided 10 risk S225 and be-
come one OF the corporators of the COM
pany The directors put In only enough
money 10 organize and pay incidental run
ming expenses-iess than $500. one million
dollars in stock has been issued 10 sell Tor
one-quarter Of its par value.
our object is 70 get some capitalist 10
invest and thus get money enough TO Duy
equipment and start work. None OF US
have ever asked employees II the city 10
invest. much less attempted 10 coerce them
into SO doing
Mr. Sears said me- had first heard of the
mine through a friend or his. and not
through Mr. Eastman. He said he ndd
talked the matter over with M. Eastman.
and after AN investigation decided to in
vest some money in it, He added that ne
considered il entirely a personal business
transaction.
commissioner Fosdick said that If he
found any evidence 20 Substantive
charge that employees OF mis- Office had at
tempted 10 coerce other city employees INTO
buying mining or any other stock Dee would.
of course. take summary action.
ct suppose there is no reason why city
emplove should not be connected with
such company he continued AT the
same time the relations of my office 10 other
departments are OF so intimate ana conl-
DENTAL "a character that 7 would regard II
as highly improper for one OF my employees
n soil stock OF anything else 10 the repre-
sentatives OF other departments. particu-
larlv when those departments were under
investigation.
The Chiantla Mining and Smelling Com
many was organized In March. 1911. and has
offices al No 80 Nassau street. MT sears
is president. Nj Eastman vice-president
and general manager Mr.. Farley treasur-
e- and Mr. Chaffee secretary. AL the Off
GERS are directors.
According 70 tAr prospectus lit '"il4i '''''
owns the Esperanza mining property con-
sistiug Of about seventy-hve acres. situ-
a-ed near the town OF Chiantla. The rs
neranza had been operated hy spaniards
In oiden times the prospectus said. ana
gold and silver taken out, but the lower
grades Of silver and lead ore ignored. The
company expected 10 work the ore con-
tanned in the dump which an assay mas
shown. the prospectus said. is worth $50
"a ton.
Mr. Farley will be examined by Mr.. Fos-
diclr ro-Fsv