The New York herald., 1921-12-22
'FROTHINGHAM Mine
PROPERTIES CLOSED
Directors Say Salvador Cor
pOratiOn Is Without In
come or Funds.
INVESTORS SEE FRAUD
Charge Misrepresentation
and Seek Share in Divi-
sion of Estate.
HEARING is POSTPONED
Special Commissioner Sets Jan
uary 5-Auditors File
Their Report.
HEARING is POSTPONED

The board Of directors of the Saliva
dor Silver Mines Company Inc, issued
statement yesterday to stockholders
making known that the corporation is
without income or funds to carry on
its business, and that the big proper
with no prospect of future profits from
operations.
These are the mining enterprises in
which Thomas w. rockingham, for
mer member of the Stock Exchange,
figured prominently as promoter.
Stockholders have brought action
against rockingham, whose entire
property is in the hands of trustees,
alleging he was guilty of fraud and
Misrepresentation in the sale of the
stock. The petitioners seek to share
in a division of the rockingham es-
tate on equal footing with other
creditors.
f. Henry Lacombe. who has been ap-
pointed by Judge Augustus n. Hand as
special commissioner to determine the
merits of the fraud charge. postponed the
first hearing, which was set for yester-
day afternoon, until Thursday, ia Iary
5, at 40 Wall street.
Counsel for the several parties noted
their appearances yesterday and were tolo
they must be prepared to go ahead on
the adjourned date. The stockholders
seek through this action to recover their
investments. Frothingham's represen-
tatives have stipulated that If the fraud
charge Is established rockingham is
willing to admit his insolvency for their
benefit. Several millions are involved in
the proceeding.
The directors accounting to the COM
pany stockholders states that Frank NJ.
Estes was engaged as general manager
to make a thorough investigation of the
properties in Salvador. Mr.. Estes has
returned and summarized his report and
recommendation. The statement signed
by the directors concludes as follows:
I'm view of the conclusions or the
company's engineer. which are con-
firmatory of other reports. and by rea-
son of the financial condition OF the
company as set forth In the accom-
panying auditors report. and this COM
pany being without income or funds to
carry on its business. it is the judgment
of your board of directors that they
take such steps as in their opinion may
be necessary for the protection of the
company's assets until such time as
they may BE- able TO liquidate the same
by sale or otherwise"
II. G.. Rankin G. Co. auditors, in
report which accompanies the state
ment of the directors. state:
The deficit account balance on Octo-
ber 81. 1921, amounting to sJ60,950. in
cludes many items previously stated
under Deferred charges owing to the
fact that when so stated it was antici-
pated that such items would be alb
sorbed in future profits from operations.
The mines are now shut down, with no
prospect of future profits from opera
tions. consequently all operating losses
and development charges are included
in the deficit
representative of FL Salvador com
pany said that the allegations of fraud
referred entirely to rockingham and in
no way to the company, which had not
made representations Of any kind.
The statement sets forth in detail the
operations of the several mines included
In the Salvador group. giving the total
tonnage of ores mined, the percentages
of gold and silver obtained per ton, the
cost Of production and the average ton
mage fosses.