A STORY
OF
THE BATTLE
FOR
YOU AND ME
WRITTEN BY
ISAAC VAN HORN
THIS STORY IS DEDICATED
to
THE STOCKHOLDERS
of the
UNDERWRITERS SECURITY COMPANY
ACME CONSOLIDATED GOLD & COPPER MINING CO.
LARAMIE, HAHNS PEAK & PACIFIC RAILWAY CO.
BOSWYOCOLO COMPANY
Because of their loyalty to me in the days and years
of struggle in my effort to round out
my life work to completion.
THE STORY
You may possibly some time have come into my office at 7
Congress Street, Boston, when I was in the active brokerage
business and found me short, irritable, and my conversation
unsatisfactory. Possibly you left feeling hurt because you felt
your individual case did not receive the attention you thought
it deserved, and possibly I, too, felt hurt because I thought you
unreasonable.
Being interested in one of my companies, you may have
written me a letter asking for information which seemed to
you only your just due as one of the stockholders, and perhaps
received a reply, blunt, to the point, but not to you satisfac¬
tory. Very likely we misunderstood one another, for the very
fact that you were a stockholder was a compliment to me be¬
cause you must have had confidence both in me and my busi¬
ness or you would not have been; on the other hand, the very
fact that I was) bearing the burden of responsibility necessary
to carry your interests to success was the best evidence of my
regard for your interests intrusted to my care.
There is a time in every man's life when the thought and
desire to make money is secondary to some other great pur¬
pose, when the greatest happiness of his entire life is because
of the love, confidence and respect of his fellows. At such a
time as this, his thoughts go out to those who have been his
associates along life's journey, and it does him good to place
his hand on his friend's shoulder and say, "Well, Old Boy, I'm
awfully glad to see you." Have you not felt just that way?
Have you ever thought how I must feel at times with
almost twelve thousand men and women looking to me, trust¬
ing me and realizing that upon my personal efforts they must
§
either see their savings swept away or bring to each successful
return upon the funds invested in my enterprises, in many
cases the result meaning really success or failure financially to
their entire lives? Have you ever considered what a terrible
responsibility this must be to an honest man?
It is because of a deep sense of this awful responsibility
that I have here undertaken in my own way to place in the
hands of each person who is a stockholder in what are known
as my companies some facts which will, I feel sure, only make
stronger the ties of confidence which I am happy to say so
largely exist between us and continue in a more satisfactory
manner than ever the good feeling now existing because of a
more thorough understanding of all conditions affecting our
mutual interests.
Just think what it means to a man who cares, to have asso¬
ciated with him around twelve thousand people, of all classes
and creeds, rich and poor, far and near, who take from their
means be it much or little and trust him to see that it is
handled honorably as well as ably. Do you not think it the
greatest compliment possible for any man to receive?
Think what a power the concentrated effort of these people
can bring to bear, and what, can be accomplished when prop¬
erly, directed.
These things each stockholder can fully realize, but there
is something else; that is, the consideration that is due the one
who is willing and able to shoulder the great work with all its
responsibilities, cares, disappointments and misunderstandings,
and who cheerfully toils and plans to the end that your inter¬
ests may be protected. Some may say, "Well, he is paid to do
that." #
Ask any founder of legitimate enterprises, any builder-up,
any man who is virtually an empire builder, and no matter how
well paid, he will tell you that at times the burden feels too
heavy to carry further, and the only reason he carries it is be¬
cause he and he alone can carry it successfully to completion
and he does it because of his sense of duty.
6
Too often people confound a speculative openator with a
builder-up of legitimate business enterprises. Have you ever
thought how the sculptor can spend years of noble life carving
out of the rough stone a work of art, only to have it spoiled in
a minute by a fool with an axe? Have you ever thought how
easy it is to tear down, compared with the labor of building
"up?
For years I have stated in the press and through letters
and circulars that I did not solicit the speculator to become
associated with my stocks, but the clean business man and
woman who believed in legitimate business, honorably and
capably conducted, and to such the future was certain.
I propose in the following pages, if possible, to present in
my own original way a story affecting the properties in which
you are interested with me, and to show you that I have
rounded out for you and myself a truly wonderful work, with¬
out taking your money for my time (which will be a great sur¬
prise to many); that I have made the success possible through
my own friends and my own means; that I have given days,
months and years of my time without compensation in carry¬
ing out the work, have not even been officially connected with
the companies, yet have day after day, week after week, and
year after year worked as if the whole matter depended upon
me, and have been accessible to every person interested: why?
because, originally, most of those interested became so because
they trusted me.
If, after you read the following statement of facts, you have
not a better idea of the troubles and trials of the management
of enterprises, then my time in writing these pages will have
been in vain; but, on the other hand, if it results, as I believe
it will do, in each stockholder iooking at things in a perfectly
fair way and with a better understanding than ever before of
the magnitude of the business in which we are engaged, result¬
ing in that perfect harmony of action essential to the success
of all great enterprises, then the time spent in writing these
lines will have amply paid.
7
YOU ARE MY ASSOCIATE
And because you are, I am going to call a spade, a spade; I am
going to let the light in, in a perfectly frank way, where it is
seldom turned on, with the hope that it will give you a better
idea of the square way in which this business has been built
up, and the battle which has been waged against us because
we were little, because we were not in the ring, so to speak,
because we refused to listen to threats, because we were out¬
side of a certain clique which is dominant in New England
financial circles, and who consider the business of any others
done on a large scale with jealousy, and who by deed and word
of mouth are willing to say unkind and untruthful things
against you to harm you and retard your progress; I am going
to do this because it is your due and because your business is
so clean compared to that of many who have fought our prog¬
ress for years that it is time you fully understood it.
WHY WE HAVE BEEN SUCCESSFUL.
There are many reasons why our efforts are being crowned
with such success. To undertake the development of a coun¬
try one hundred and fifty miles in length by seventy-five miles
in width, in which the whistle of the locomotive had never been
heard, where the click of the carpenter's hammer was almost
unknown, where the coyote roamed at pleasure, and where
vast valleys rich in everything required to build up communi¬
ties laid arid and practically worthless while the water which
should cause them to blossom forever went splashing down
the streams unused, not to speak of forests still virgin save for
isolated camps on streams where railway ties were cut out, and
coal fields unsurpassed in the whole world failed to even at¬
tract attention, and where a smart western editor stated noth¬
ing grew except sage brush and nothing lived but Jack rabbits
—I say to even undertake the development of such a territory
was a battle within itself.
But as the sturdy pioneers wrho blazed the trail which has
made this magnificent countrv of ours possible, so we, firm in
' 8
our knowledge of the richness of our new Empire, with stout
hearts and willing hands have pushed forward our work until
today it stands forth as one of the monuments erected in this
country to the pioneer, to the empire builder, to the home
builder, to him who has caused two blades of grass to grow
where none grew before, to us, this band of almost twelve
thousand people who have opened for all time, and to all peo¬
ple, our Empire of Southern Wyoming and Northern Colorado.
We have won because it is just what we claimed for it—a
section of marvelouslv rich and varied natural resources; we
have won because we have had stout hearts and have been
willing to give our time and our money to the work, and to
work united to one common end; we have won because we
have been assisted in our work by every broad-minded man or
woman who has become associated in the work, and the glory
will all be ours in history, and the profits come to us with com¬
pletion because of our patience and perseverance.
OUR WORK HAS TOLD ITS OWN STORY.
v
The truth in reference to our work, our battle, has been
largely misunderstood because so unusual. It has been in the
past, when we needed support the most, maligned by those in¬
terests who call themselves conservative, just the same as
every great work in its earlier stages is maligned, but results
are telling their own story.
While many of these so-called conservative interests, these
defamers of little things, have been struggling under a load of
debt piled on in prosperous times without thought as to the
day of depression, while many large banking interests have
really refused to meet their customers' checks with cash over
the counter, when financial distress such as this country will
probably never see again spread over this great land, we have
faced the storm with our ballast well set, our sails reefed for
the storm because, why? because I have insisted year in and
year out (oftentimes at the displeasure of those interested be¬
cause of the slow progress made) that we do business on a
cash basis.
9
} The result is now apparent to every person interested.
MARKET PRICES OF OUR STOCKS.
There is a point in the life of any active corporation, if its
stock be dealt in daily on any exchange, where those interested
in its management and the person who. buys its shares for a
speculative turn in the market for profit, without reference to
the development of the business itself, must of necessity part
company; this time brings with it unsatisfactory conditions
both to the head of the corporation or its sponsor and the
trader alike.
I desire to discuss this situation as affecting our stocks very
plainly at this time with the hope that its discussion will result
in a full understanding of the matter by each reader. In order
to do so intelligently, I will take up the stock of each of the
four companies separately in order to fully demonstrate that it
is not the province of me as the founder of these enterprises
to build up a market, but to build up a successful business
which of itself will, on merit, force the stock gradually to its
real value market-wise, and this is the only way a permanent
market value can be secured and maintained.
UNDERWRITERS SECURITY COMPANY
In taking up each company separately at this time, I do so
only as to market prices, as a full discussion of the companies
themselves will be taken up later.
There are outstanding at this time less than 13,000 shares
of the-stock of the Underwriters Security Company, and of
this amount at least 11,000 shares is absolutely held for invest¬
ment and very little of the other 2,000 shares is offered for sale,
so that practically there is no real market for its shares.
Whatever market price is made from time to time is made
by some one who desires to sell for reasons of their own, and
it can readily be understood that the company or myself can¬
not control the price at which such stock may be offered.
I am neither an officer nor director of the corporation, so
consequently mv position is the same as that of any other stock-
10
holder. Therefore, as far as the market price of Underwriters
is concerned, I have not and neither have the management any¬
thing at all to do with it.
ACME CONSOLIDATED.
I am personally by far the largest individual stockholder in
this company; the present market price is made from day to
day by the sale in many instances of a hundred shares or less;
just think of this, the market price on 1,000,000 shares made by
the sale of 100. Is this not ridiculous?
There is no question in my mind that at least 900,000 shares
of the 1,000.000 shares is owned by people who would not
think of selling at less than from 50 cents to $1.00 per share,,
and who are willing to pay no attention to present market
prices because they know they mean nothing; not only this,
but they are buying more all the time, and it is reasonable to
suppose they will buy as cheaply as they can.
I am neither an officer nor director in this company, but a
stockholder simply whose investment is far greater than any
other, and whose interests are the same as yours. The man¬
agement of the company is clean and able, is composed of men
who are willing to give its affairs their attention without pay,
but with myself are not interested in market quotations.
It should be fully understood by every stockholder that any
commission broker can advise the purchase or sale of this or
any other stock and the management not be interested in the
least, showing conclusively how impossible it is for any man¬
agement to regulate prices.
LARAMIE, HAHNS PEAK & PACIFIC RAILWAY.
Each day on the Boston Curb the market price of this stock
is made. Who makes it? Some one who'wants to sell, some
one who buys what is offered. Now in all reason, what have
I or the officers of the company to do with it. Absolutely
nothing.
A short time since a certain broker, for reasons best known
to him, stated in a market letter the stock would sell for 5a
cents per share. He had a right to say this if he so desired.
11
Only two days later one of the daily financial papers of
Boston issued a special bulletin on Laramie which could not
possibly have been more satisfactory. So these are just two
instances showing- what make market prices.
Suppose, for instance, some holder of Laramie stock is will¬
ing to sell at a low price for any reason: can I help it, am I re¬
sponsible any more than I would be if some other railroad cor¬
poration wanted it and bid it up to a price as much too high,
based on real worth, as the other offer was too low?
Stocks, and all stocks, swing from one level to another and
that is the reason they are traded in for speculation and their
market prices are made by the stockholders, not the manage¬
ment.
Every share of the 900,000 shares of Laramie is owned by
the public; the company does not own one share, and because a
few people sell at low prices and make a market is no reason
why the company or I should' pay any attention to it in the
least.
BOSWYOCOLO COMPANY.
I am the President of this company; in conjunction with an
able Board of Directors I am rounding out a great corpora¬
tion.
Every share of stock of this compnay sold netted to the
Treasury of the company its par value of 10 cents per share.
No officer, director or individual made one dollar in commis¬
sions, but paid the same price for their shares.
Now, suppose some one who bought this stock should be
willing to sell it for less than 10 cents per share, can you tell
me any reason why I should buy it simply to support a market
price; in fact, you as one of its stockholders and believers in
it might desire to buy more, what right have I to manipulate
the price up in order for the dissatisfied stockholder to sell,
when by doing so I make the friend of the company who wishes
to buy pay more?
I, myself, and the management of this company are not in¬
terested in the market prices on this stock at all.
12
MARKET CONCLUSIONS.
If you own any stock, one of two things only remain open
to you: if you desire to sell you must take what another will
pay; if you do not desire to sell, but believe in the permanent
value of the stock, hold it for its legitimate advance in price on
merit or for permanent investment based on income.
I believe, if you will just realize it, that as a believer in these
companies of ours you can see where the decline in prices has
been very healthy and for the ultimate good of all concerned.
It demonstrates that during the general decline in prices no
one has tried to place a false valuation on them, that no at¬
tempt has been made to try and convince you that the financial
ills of the past year had not affected our stockholders, compell¬
ing many of them to sell, but that those most largely inter¬
ested had let supply and demand actually make prices, no mat¬
ter what they were.
• #
What will be the result? Every one looks soon for a resto¬
ration of confidence and general improvement in business;
when it comes our stocks, ip common with all others, will
naturally seek their level again, based on improved business
conditions. Is this prudence and sanity or not?
THE FAULTFINDER.
Not a single stockholder in any one of these four com¬
panies has a right to find fault with their management because
of market prices. It is a fact which cannot be disputed that
only the proper care of the business itself comes under their
care, and I believe that no set of men ever managed four cor¬
porations, in which almost twelve thousand people were inter¬
ested, where this spirit was more loyally shown than in our
companies, and it is because of this fact that this pamphlet is
written.
In submitting the following information in reference to the
companies themselves I wish to make a few remarks of a per¬
sonal nature.
13
MY PERSONAL POSITION.
I shall never again appear before the public in the sense of
soliciting business for profit or to enlarge my personal follow¬
ing, but I shall devote the balance of my life to the best of my
ability in securing to that army of faithful supporters satisfac¬
tory results financially. If market prices are unsatisfactory to
the trading element in the companies I shall give it no concern
whatever, but, as an individual I shall use my time, means and
thought to verify every statement I have ever made as to legi¬
timate business results. Thus, with this publication I practi¬
cally retire from active business as far as the market is con¬
cerned, to devote my entire time to the rounding out of the
plans which mean so much to us all. I shall endeavor to be in
the closest personal touch with those interested, and with the
hope that these further descriptions of the property will con¬
vince you of the grandeur of our work, and thanking each one,
large or small, for their loyalty to me and my interests, I re¬
tire permanently from the "street" as a market operator, to
give my entire time to the business development of the enter¬
prises and submit the following to you for your most careful
consideration:—
THE STRUGGLE.
In submitting the following facts, I do so with a great
amount of personal pride and satisfaction because it is the first
time in my whole business life that I have seen fit to give to
the public an authentic account of as great a struggle as has
ever been fought by any man, one which has been understood
and known by some of the greatest men in this United States
who were willing to give me their aid, but who fully under¬
stood my refusal to accept it, and who through long years of
battle have watched the progress, and who have been and are
today my most sincere friends.
These men because of their position in the business, pro¬
fessional, political and social world, as men representing the
highest type of American gentlemen, loved and respected by
14
all who knew them, gave to me the feeling of security neces¬
sary for the battle.
I believed then, as I do today, that the Almighty meant that
the human race should be blessed by the utilization at some
time of the wonderful natural resources of that part of the
Rocky Mountain section known as South Central Wyoming
and Northern Colorado. I believed then, as I do now, in that
section as I do in my Creator. I wrapped my whole life, my
very being, up in its legitimate and business development. At
its inception I was only a boy, practically, with no business ex¬
perience to speak of, without means but full of the enthusiasm
of youth. By proper conduct I had secured, as stated, the
friendship of men in various sections of the United States,
prominent in business, political, professional and social life,
men who through all these years have been my friends; bank¬
ers of prominence in the West as well as Boston and New
England, Governors of States, Senators of the United States,
Congressmen from many localities; several of our greatest
American Authors; men of professional and political reputa¬
tion over the entire country, and I had access socially into
some of the most refined and respected homes in this land.
Many of these people I knew would not only willingly have
allowed me the use of their names to assist me, but many
wrote me letters with the privilege of their public use to assist
me; one United States Senator known to every business man
almost in this country, going so far as to even indorse not only
me, but my business without qualification.
In the early days of my struggle as a young man without
means such support would have meant a cordial reception in
financial circles which it has taken me almost twenty years to
reach and into some which I have never entered at all, but not
once in all the years of my work have I used these reasons to
build up my business, but have asked for support solely on its
merits.
I have been absolutely independent in my work because m>
heart was in it, because I knew it was right, because I knew
that if I lived I should successfully carry it to completion. I
15
have been so independent that I have been disliked by many,
but it was and is because I have been totally misunderstood by
'such persons, for I have only taken the stand against any in¬
justice of thought and action which any man takes who is en¬
gaged in a great work which is all-absorbing to him, which he
considers unjustly criticised by others.
At this time I want to tell the story, not because it makes
any difference to me what the world at large thinks, but to
demonstrate to those who have been associated with me of¬
ficially in my work, and the almost twelve thousand people all
over this country who have placed their confidence in me dur¬
ing these long years, that no sacrifice has been too great, no
burden too heavy to bear if it meant for the success of our
mutual interests.
I want each one interested with me to know, no matter how
small their interest, or how large, that I am not too independ¬
ent or consider it undignified or too small to tell them why and
how I have tried to earn the confidence they have given me,
and that X have taken the time and given.the thought to tell
them not when I was in the deep struggle, when it could be
construed as an appeal for help or sympathy, but after suc¬
cess has come, after I no longer am engaged in active busi¬
ness, save in pushing forward the details of our great work
and at a time when the public owns the stocks, when my oiffy
reason can be my desire to more firmly cement the bond of
fellowship which now exists between this large body of inter¬
ested people and myself; not for financial profit but solely be¬
cause of my heartfelt interest in the welfare of every man or
woman who is associated with me.
I cannot hope, of course, to have every person who reads
this reciprocate my most tender feelings, for no matter how
clean any man's life is, it is not beyond the tongue of the
slanderer, but my support has been so loyal through my years
of struggle and my personal relations have been so pleasant
with you all that at this time, after I have carried your business
successfully through the financial storm and success is so cer¬
tain, I want you to know the facts that you may fully realize
16
the magnitude of the business which we have built up to¬
gether and which, although it has taken years to: accomplish,
has steadily gone forward to success.
If you will place yourself in my position through these
past years, you will realize how tally our interests are woven
together and how close our associations really are.
OF INTEREST TO THE MAN WHOSE HEART IS
RIGHT.
About March, 1894, or fourteen years ago, my attention
was called to Gold Hill, in Southern Wyoming, and great
things were promised by its prospective showing; a number of
my friends in the West wanted me to associate myself with
them and take up the development of certain properties there.
I did so and the foundation for all my later plans in the devel¬
opment of Southern Wyoming and Northern Colorado was
then made.
I personally visited the camp, -in the middle of a terrible
winter, saw the properties which were later secured and
formed the basis for a company known as the Wyoming De¬
velopment & Transportation Company. This visit was made
under conditions which almost cost me my life and resulted in
a physical disability which I will carry to my grave. Remem¬
ber these properties were about fifty miles from a railroad and
at an altitude of almost 13,500 feet above sea level; the condi¬
tions in winter can' be imagined.
The stock of this company was sold at $2.00 per share, the
mines were opened, and we became the pioneers in what
seemed destined to become one of the great mining camps of
the world.
The company secured the Acme group of mines, unpatented
and only slightly improved, and development was carried on in
a business way until almost four hundred thousand dollars had
been expended on the properties; patents were secured, very
expensive on account of cost of surveying, etc., so far from
transportation, roads into the camp were built at great ex¬
pense, shafts sunk and tunnels run; party after party of those
17
interested visited the properties, and the verdict was universal
as to its future. On the strength of the showing made the
stock advanced to over $20.00 per share. Mr. Fred A. Miller,
now President of the Laramie, Hahns Peak & Pacific Railway,
took charge of the work personally in the camp and, assisted
by capable miners and engineers, pushed winter and summer
toward success.
So certain were the results that the company authorized a
bond issue of Three Million Dollars to build mills, a smelter,
electric plant and a railroad into the camp. Saw mills were
erected, buildings built, a young mining engineer by the name
of A. T. Tye secured and placed in charge, a complete mineral
survey and investigation was made by him, and it was believed
by every person interested that wonderful results were close
at hand.
Just at this time, without warning, Mr. Tye was stricken in
the middle of a winter's night with hemorrhage of the lungs on
account of the altitude and was taken out of the camp on a sled
by miners who volunteered at the risk of their lives to take
him to the city, a lower altitude, and medical attendance. It
was found his lungs were so affected that he must go to a low
altitude and warm climate to continue life, and, as an evidence
of his ability and value to us, he is today the manager of a
large and successful mining plant in Mexico which he has de¬
veloped. His loss to the company seemed almost to mean de¬
spair; all the plans had been made by him; he was too sick to
even give advice; on account of the isolated location of the
camp, its awful altitude and privations, it seemed almost im¬
possible to fill his place; in fact, it was never done successfully.
On the verge of profitable production, to have this come
so unexpectedly, caused terrible disappointment; failure to fill
the place caused differences of opinion, and the company
drifted to practical bankruptcy and oblivion. Interest on
bonds was defaulted; the property was closed down; after such
great expectations close at hand, now gone, stockholders com¬
menced to sell and find fault instead of supporting the manage¬
ment, and those in its charge had to admit a miserable failure
. 18
■at the very door of certain success caused by something over
which they had not the least control.
Floating debt accumulated; bond interest grew: with these
conditions what was a great hope faded into miserable failure,
and dissent and dissatisfaction seemed to add the necessary
burden to end a career of fond hopes because of inability to
care further for finances. At this time I wrote to Mexico to
Mr. Tye and told him the circumstances and asked him plainly
as to the physical conditions as he saw them. His reply was
that he was certain one of the great camps of the country
would eventually stand there; if not for us, for some one else,
and wished he were able to come back and make his reputation
right there.
Upon receipt of this information I took the reins in my
own hands, secured the support of the stockholders in the
main, carried the matter through two reorganizations without
calling for a single assessment or taking any stockholder's in¬
terest away, cleaned up floating debts, wiped out practically
$300,000 in bonds, and today that same plant is owned by the
Acme Consolidated Gold & Copper Mining Company with a
capital of only one million shares of $1.00 each, selling in the
market in a limited way for about 10 cents per share, or only
$100,000 for this whole plant, and based on what the specula¬
tive opportunities of the mines are, is worth as a speculation I
should say around 50 cents per share; but, in addition to this,
the company has other tangible valuable assets which I firmly
believe will inside of two years, based on plans now being car¬
ried out by its management, mean a reasonable assurance of
at least par or $1.00 per share for the stock, and the certainty
of permanent, satisfactory dividends independent of the mining
property, which at one time was bonded for $300,000 or 30
cents a share for the stock now outstanding and selling for
10 cents per share.
These plans will consume possibly two years' time, but the
results seem absolutely certain to those who are willing to
Wait. Thus a brilliant undertaking was doomed to failure
through a circumstance absolutely unavoidable, but was nursed
19
and carried along, so those interested might not lose, to a point
where great success now seems absolutely certain within a
reasonable time.
For myself, I wish to say that I have been a constant pur¬
chaser of the stock for the past eighteen months until I own
ten times the amount owned by any other individual because I
believe in its management, its property and its ultimate great
success.
In conclusion as to Acme Consolidated I wish to say this:
if you own it, lay it away and wait; if you have a little idle
money you can use and it continues to sell around 10 cents,
buy more of it and lay it away with the other, and remember
that I have no interest in telling you this save because of my
desire to personally benefit you.
If you believe that the future is as stated and are one of
those who have owned this stock and carried it, believing in it
as I do, you now have the information that shows you that for
fourteen years, through all the troubles and trials, I have pro¬
tected your interests, saved your property and have carried it
to success.
I am simply a stockholder with you, but my interest is of
such size that the company and its affairs receive my careful
attention. Have my efforts in your behalf entitled me to your
confidence?
TO EVERY PERSON DESIRING ONLY JUSTICE AND
FAIR DEALING.
About six years ago it became very evident that the only
question that could possibly arise which could affect the certain
carrying out to a very profitable result of our development
work in Wyoming, was the danger that the control of the rail¬
road might pass into the hands of some corporation or capital¬
ists who might squeeze out the smaller stockholders.
The matter was talked over fully and it resulted in the for¬
mation of the Underwriters Security Company as a hold¬
ing company, that our interests might be held together until
our plans were completed. It was incorporated with 25,000
20
shares of $100 each and a basis of exchange was made cover¬
ing our interests which was accepted by over 95 per cent, of
our people.
I was elected President of the company, was asked to de¬
vote my entire time to the affairs of the company, and was
voted a salary of $12,000 a year. Within ninety days after as¬
suming the Presidency, the attitude of the Union Pacific Rail¬
road, which had been friendly, changed because of the change
of the gauge of our road from narrow gauge to a standard
gauge railway, and the attitude of Mr. Horace G. Burt, who
was then its President, made it very difficult to proceed and
our plans which meant practically immediate dividends had to
be changed1. | §;,>
At the end of two years it had been demonstrated that while
we had by the formation of the Underwriters Company kept
our interests safe from harm, that we could expect no divi¬
dends until the railroad was completed and placed in operation
its entire length.
I immediately called the Board of Directors together and
stated that while I had worked practically night and day for
two years on our plans, and had because of such work been
compelled1 to leave business entirely for a period to save a
complete breakdown of my nervous system, if the stockhold¬
ers had to wait for dividends I could not consistently accept
any salary and feel right about it, but preferred to wait with
them and take my profits on my stock along with them. To
this every Director refused to listen, saying it was no fault of
mine, that I had made a gallant and successful fight and was
entitled to my pay. I stated that I would resign entirely unless
they accepted my view of it, which they did and I returned to
the company the salary for tzvo years' hard work, which was given,
therefore, without compensation, so that for all the work I
have done for this company I have never taken a single dollar
for my services from its stockholders.
Of the 25,000 shares of stock authorized under our charter,
only about 13,500 shares were issued and only about 13,000
shares are now outstanding, the reasons for this being fully
explained in the official annual report of 1907, so that the
company as to income and value of stock must be figured on
only 13,000 shares outstanding and owned by the stockholders.
Each stockholder knows what the shares owned cost them,
and, without any comments, I request your consideration of
the following facts and figures as to whether the facts as they
exist have justified your confidence.
Upon the highest engineering authority in the world this
company is assured of an income upon the shares owned in its
treasury and representing the 13,000 shares of its own stock
outstanding of about $200,000 for the first year after the rail¬
road is in full operation, and the date of such operation is now
reasonably within one year.
Thus meaning an income in the first year of practically
$15.50 on each share of stock of the Underwriters; to get this
means only awaiting the completion of the railroad which is
explained in this pamphlet later.
In addition to this, it is believed the income from the coal
mines to the railroad will bring the income upon Underwriters
up to at least $20.00 per share per annum after the first full
year of operation.
But this is not all, for this very method of keeping the in¬
tegrity of the company intact makes it impossible to consider
it when completed except upon an investment basis on its in¬
come, which should assure a value for the stock on a perma¬
nent basis of at least $400 per share.
These are the real facts based on the situation as it really
is, and, no matter what any one says or thinks to the contrary,
these facts are not changed in the least.
To carry the company, look after its business, pay its cor¬
porate tax, properly keep its books, etc., until the railroad was
completed meant the need of ready money constantly : to pro¬
vide this seemed a problem and, apparently, only one way
seemed reasonable and that was to call on the stockholders.
Again, I proposed a plan which would care for the business
and carry it until such time as it would pay dividends by turn¬
ing over to the company business of my own from which I
22
wished to retire, without cost to the company and securing for
the company other business sufficient to carry it to its pro¬
ductive period. I then retired from its active management and
became a stockholder the same as every one else.
I feel very proud of what has been accomplished, and the
facts given show why so little of the stock comes into the
market for sale.
Has not this policy of care and prudence which has brought
us to such a firm and permanent position been wise, even
though it has consumed time to do so, rather than court failure
by trying to do unwise things to hasten the result?
23
THE STORY OF THE RAILROAD
NEARING MIDDLE FORK
Fine Progress Being Made by
Tracklayers on the Laramie,
Hahns Peak and Pacific Rail¬
way Colorado Extension.
Miners and Ranchmen are Rejoicing.
Wednesday morning when the Laramie,
Hahns Peak and Pacific engine went for '
the first time around the "horseshoe
curve " and out across the valley for more
than a mile further than it had ever gone
before, there was general rejoicing on hill
and plain, the miners on the mountain
side dropping pick and shovel to join the
ranchmen in the valley below in viewing
from afar the iron horse .as it tread for
the first time upon virgin territory in its
onward march to Colorado, and eventually
the coast.
It was indeed a day that marks a new
epoch in the history of this glorious sec¬
tion of the country. Every one seemed
to step higher and a little more briskly,
and when friends met it was with a smile
and the auery: "Did you see the train out
in the valley today?" to be met with the
same cheerful reply "Indeed I did and
didn't it look good."
For just one year the train has been
making its daily trips from Laramie to
Centennial and back, and the ever
present, pessimist and the irrepressible
knocker has for months been posing as a
wiseacre, saying, I told you it would never
cross the valley! But the sturdy promo¬
ters of this most meritorious enterprise
have neither turned to the right nor the
left, nor been dismayed by the financial
disaster that for a time unnerved the
nation, neither have they hesitated at the
raging rivers to be crossed, nor the moun¬
tain high walls of iron and granite to be
scaled, and with a singleness of purpose
are surmounting every obstacle in a bus¬
iness like manner, ana the smoke of the
engine as it crosses the valley and climbs
the mountains beyond not only gives the
lie to the knocker, but in its graceful
wreaths ascending heavenward, like in¬
cense from the altar of their self-sacrifice,
spells in imperishable and unmistakable
characters, the eternal personal and finan¬
cial glory of Isaac Van Horn, Fred A.
Miller, and their many associates in the
evolution of the Laramie, Hahns Peak
and Pacific railway, that is transforming
the desert and wilderness into an empire
of productiveness and beauty for the
health and comfort of mankind for all
the ages that are to come.
Down deep in the hearts of all men there is a feeling of tenderness
and sentiment ; possibly it may be covered so successfully that the world
at large never sees it, but it is there just the same.
24
There are moments when the heart beats more quickly, the
face flushes unconsciously, and the very soul inside seems in¬
spired. I have such confidence in my fellow man that I believe
every man has this, and I have the feeling that every man who
reads the article written above must know how I felt when I
read it.
»«Transforming the desert and wilderness into an empire
of productiveness and beauty, for the health and comfort of
mankind for all the ages that are to come.'5
Not for today, tomorrow or during a life time, but for all
the ages to come; this means something; a man's life has not
been spent in vain, has it?
As I stood at Centennial, Wyoming, on the morning of July
4, 1907, looking across that beautiful valley surrounded by my
Boston and New York friends who were there as my guests at
the opening of this, the first division of the road, and saw an
engine throwing its curls of smoke to the Heavens and draw¬
ing into that new frontier town of the West over a thousand
people riding on flat cars, inside and upon the top of box cars,
in fact, in anyway to get there, and paying for the privilege to
pay tribute to myself and1 associates who were opening their
country to civilization, I simply but quietly grasped the offered
hand of my dear associate and friend, Fred A. Miller, and with
a mutual pressure which meant more than words, we looked
into the tear-stained eyes of one another and a chapter of life
was complete. Can you grasp what it all meant?
We had not had Wall or State Street to back us; we had no
means personally to carry on the work, and this result meant
a struggle made and won—not alone ours, but the struggle of
every associate and friend who had helped us, and that meant
every stockholder, large or small; we had accepted the trust;
we had completed its provisions.
Accomplishments in the world are often considered too
lightly : a man buys a few shares of stock in a corporation and
assumes no responsibility; the man who undertakes to safe¬
guard his interests is too often misunderstood.
If it is so easy to build railroads, why is the country suffer-
25
ing in many localities for transportation; if it is nothing out of
the usual to build a railroad1 into the vastness of the great
Rocky Mountains, why is it that mines worth millions lie idle,
people suffer from cold for need of fuel, lands lie idle and un¬
productive while people starve?
Why do men, ordinarily broad-minded and fair, having
business sagacity and aggressiveness, sit back and critically
say, "Why, the road won't pay; if it is such a good thing and
the territory is so rich, so-and-so whose main line runs out
there would have built a branch line years ago." Did this
spirit make this grand country, or has it been the struggles of
the pioneer, such men as were willing to go into the wilder¬
ness, suffer the struggles and hardships and place the imprint
of their individuality upon the progress of the world?
Men of individual force and aggressiveness make the world
go, but they become in public view, many times are considered
entirely selfish and by the world generally criticised to the
quick and woefully misunderstood. But they develop the
country's virgin resources and stamp their vigor upon the his¬
tory of their country for all time.
History will prove that the conception, organization, con¬
struction and development of the Laramie, Hahns Peak &
Pacific Railway has been one of the best struggles for man¬
kind ever fought in our country, and will show what a loyal,
aggressive and clean lot of people can do when determined.
Some may say, "Why, this is only a little road about a
hundred miles long and not yet completed," and I wish to say
that is the very reason it is such a wonderful enterprise be¬
cause such a little thing means so much that it seems almost
impossible to realize.
BUT HERE IS THE STORY.
Laramie, Wyoming, to, Hebron, Colorado, just 107 miles;
this is the situation.- At Laramie is a beautiful, prosperous and
growing city, a division point on the Union Pacific main line,
shops, a rolling mill and time will mean a metropolitan city of
26
large proportions built up and made by its present progressive
population of about eight thousand people.
At Hebron, the other end of the line, are located the great
Riach Coal Mines, without exception the greatest coal prop¬
erty of its kind in the whole world, which can furnish all the
coal the road can haul for over a hundred years.
Along the line and in its territory are located bodies of
• timber which are cut under United States Government super¬
vision, therefore perpetual as to output, which will furnish at
least one million railroad ties every year, not to speak of com-
■mercial lumber, fence posts, telephone posts and mine props.
"The great North Park cattle fields and adjacent territory,
recognized as the best in this country, will furnish in and out
■around sixty thousand cattle per annum.
Sheep by the thousands that roam in the mountains in bands
-of from two to four thousand each, and millions of pounds of
wool (sheep-shearing pens where machinery is. used being al¬
ready located on the line) will add to the tonnage of the road.
And so the story might go as to mines, agricultural prod¬
ucts, etc., but sufficient to say all this is verified by the report
made by Messrs. J. G. White & Co., of New York, recognized
as the leading engineering firm of this country, if not the whole
rvorld, and further substantiated by men of influence and char¬
acter whose word is publicly accepted as true by the strongest
financial interests 'in this country.
I stood at Centennial several years ago with Mr. Fred A.
Miller, of Laramie; Mr. George M. Colby, of Lawrence, Mass.;
Mr. L. Waldo Thompson, of Woburn, Mass. ; and, in discussing
the development of the mines in the mountains back of Cen¬
tennial, I stated that a railroad was all that was needed and,
after some discussion, it was conceded that if we could only
get a cheap, narrow-gauge railroad so the mines could operate,
it would mean a very profitable business and later a smelter at
Laramie.
The matter was gone into thoroughly upon our return to
Laramie, and it was decided that I should undertake to build a
marrow-gauge railway out there, up into the mountains, etc.
27
This was the birth of the Laramie, Hahns Peak & Pacific-
Railway.
The company was organized, the stock was offered to the
public at $1.00 per share, the lowest price at which the com¬
pany ever sold, and it did sell although it was simply a pro¬
jected line and narrow-gauge at that.
We surveyed the road to Centennial and up into the moun¬
tains, bought right-of-way and entered into negotiations with
the Union Pacific for right-of-way over their lands. A price
was made, deeds were sent to New York, construction work
started, and we found that we could get cattle enough alone
to justify the construction of a standard-gauge road and *the-
change was made.
As soon as this change was announced the attitude of
former friends changed: the Union Pacific refused our right-of-
way deeds, although our line was already partly constructed
upon them, and we had to take the time to go to court and
condemn them, which we did.
We found that former financial friends could no longer see
their way clear to help us, as they did not care for a personal!
quarrel with the large financial interests who seemed against
us.
There was no Interstate Commerce Commission then and
we could get no rate on ties by which we could possibly build
our road, and this again forced a year's delay and necessitated
our going out into the mountains fifty miles away, buying land,,
then cutting our ties at great expense, and then, to clap the
climax, the time, trouble and expense to haul them with wagons
and distribute along our grade:
This obstacle overcome,, the next step was to get a connect¬
ing track at Laramie which the law said we were entitled to,
and we could not get it. Rails were ordered from the Carnegie
Steel Company, but we could not afford to haul heavy rails-
with teams and we were again delayed, while Hon. M. F. Dick¬
inson, of Boston, and Judge Irving F. Baxter, of Omaha, un¬
dertook to amicably adjust this difficulty.
These matters had consumed so much time that many
28
thought we had been compelled to abandon our purpose, and
many articles were written and circulated that the promoters
had swindled servant girls all over the country, and that the
road was a swindle pure and simple.
At one time the condition of affairs was such that almost
every avenue for revenue had been closed to us, but we only
proceeded as we had the cash, so had no debts and could not
be molested. About this time I decided that we should change
our plans and make a bold move by going into the coal fields
of North Park, Colorado, if possible, to get a line there. No
sooner had'arrangements been made to do this than two other
railroad companies were organized to do the same and the sit¬
uation became not only interesting, but critical.
We had been building the road and doing our work up to-
this time from the sale of the common stock, something never
before attempted, but the constant delays and irritations really
unsettled enough of those interested to make it impossible and
our Engineer's Report showed that to go to the coal fields in
North Park would cost around three million dollars, not to-
speak of terminals, equipment, etc., and the stock was netting
the company about one dollar per share, or an entire revenue
of $900,000 to build and equip a road which would cost over
$3,000,000.
An arrangement was made to build the road then under
contract whereby the road was to be built and paid for by pay¬
ing to the contractor $S,ooo a mile in bonds, $10,000 a mile in-
preferred stock, and an amount in common stock and the bonds
at $8,000 per mile were authorized issued.
This plan was undertaken and proved an utter failure, but
the bonds and preferred stock were not issued, so it meant only
more delay and discouragements. I again took hold of the
common stock, we worked slowly and carefully, secured valu¬
able terminals at Laramie about a half mile wide and a mile
and a half long right in the city, but we could not sell our
bonds and I spent almost one whole year at my own expense
trying to do this and at last succeeded.
We then found the condition of the rail market such that
29
we could not get a delivery of rails and almost another year
was wasted. In the meantime, the stock of the road was in
such shape that it could not be sold at all in quantities to suc¬
cessfully complete the enterprise and, to our consternation, we
found that other parties were quietly working to secure con¬
trol, and I could only wonder what it meant to our large army
of stockholders.
I immediately with my associates organized the Underwrit¬
ers Security Company as a holding company, explained the
situation and, by an exchange of stock, secured the control of
the outstanding stock and thus saved our interests intact.
We then pushed on with varying fortune until our line was
completed to Centennial, practically unbonded; this was then
bonded for $8,000 per mile and our plans to reach the North
Park coal fields commenced.
We immediately found that it was impossible to build it,
let alone equip it, for less than about $27,500 per mile, and, in
the meantime, depression had set in.
After consultation with our engineers we decided to bond
the road for $18,000 per mile and build it as quickly as possible
into the coal fields where an immense traffic awaited us, but
the first obstacle we met was: "If you people start to build
to that coal, and they are certain you are going to, some one
else will build first and anyhow, if they buy the coal mines,
you are there and they can keep the mines closed." I immedi¬
ately went to Pennsylvania and entered into negotiations with
the owners of the coal company on the basis that they needed
a railroad and we needed the coal, and it took us practically
another year to reach a mutual agreement—but a most serious
obstacle confronted us—how could we carry out the arrange¬
ment without money, and how could we assure them we could
give them a railroad? I gave the matter serious consideration
because a serious financial depression had set in, and out of
my work, the Boswyocolo Company, of which I will speak
later, was born.
1 visited our bankers in New York and explained the situa¬
tion frankly and fully to them. I successfully floated the Bos-
30
wyocolo Company and was in a position to carry through the
coal deal if I could assure the building of the railroad. I ex¬
plained the situation, the coal business was assured us for all
time, the Union Pacific, assured of our good faith, entered into
a traffic agreement for twenty-five years, our bankers then
took the $1,800,000 in bonds, and after our years of struggle
our enterprise was a success in every way. - •
I personally negotiated and worked out all the details cover¬
ing the acquisition of the coal, the sale of the $1,800,000 in
bonds, spent almost two years and thousands of dollars in
expense and never asked or received indirectly or direct a
single dollar in commissions of any kind, being satisfied to
succeed and carry the enterprise to completion. This will
surprise many of my critics, possibly, who supposed my per¬
sonal fortune had been made out of the financial transactions
of these companies when the facts are I took advantage of the
prosperous times in the stockmarket to not only make my for¬
tune, but to make the success of these companies complete.
What then is the situation in reference to this railroad
today?
Thirty miles of operated road;, ten miles more to be placed
in operation possibly within thirty days; construction proceed¬
ing with large forces on the heaviest work in the mountains;
financed to completion, not only as to construction, but the
great equipment needed to care for the immense coal traffic;
the coal traffic assured for all time; a substantial ownership
of the coal: operating under traffic agreement with the Union
Pacific; practically no debts, but current bills which are paid
monthly; and the control of it absolutely assured to its stock¬
holders, with the assurance of its completion the full 107 miles
within one year.
Is this satisfactory in the face of the difficulties we have
met and overcome?
What does it promise us?
The. highest engineering authority in America says in their
report not less than $400,000 net, over $1,100,000 gross the first
year, and that inside of three years it would not be surprising
31
to see the figures reach $1,500,000, and these figures are based
on 1,000 tons of coal a day when a market standis ready up to
from 5,000 to 8,000 tons a day, or a difference in gross receipts
when this production can be reached of almost $3,000,000
•every year.
Now, for the exercise of a little every day common sense.
There are 900,000 shares of this stock , at par, or $10.00 per
share. This would be $9,000,000. To pay 5 per cent, on this
stock at par would take only $450,000. Look at the public
•quotations on the stock and then just be honest enough with
yourself to think it over and see what you think about it after
making the comparison.
It is a little road, as I said, but the conditions have made
it a big enterprise.
There is something about this railroad and coal property
worthy your consideration. They are both open to a verifica¬
tion of the facts stated. The railroad is operated and its books
kept under the supervision of the United States Government.
The seven square miles of coal are there, and the deeds are on
record in Larimer County, Colorado, showing they are free
from all debt.
The winning of this struggle has secured for us the respect
and confidence of all who understand it„ especially in the face
of financial conditions during the past eighteen months.
32
AN OPEN BOOK TO THE
WHOLE WORLD
Time and experience should teach us practical lessons or
we fail to profit where, profit is due. I prize more dearly than
money the confidence and respect oí my pëople who have made
my business career possible, and, as our plans gradually work
•out, I believe my pleasure is greatest at success.
Among my people are many people of small means, and to
those I wish to have a little talk right here, because at a criti¬
cal time they came to me with their confidence when the whole
financial world was tottering because of lost confidence.
For the first time in financial New England in a large way,
I offered to the public a stock at 10 cents per share and that
was its par value. This was when I publicly offered Boswyo-
■colo. I gave the man with $10 an opportunity with the
man with $1,000, and it was appreciated. Not alone this, I
-allowed no man, no matter how influential, to buy for less than
the humblest citizen.
I sold publicly 1,500,000 shares out of an issue of 10,000,000
shares in two days. I then went to my friends with the other
-8.-500,000 shares and said, "I want to sell this to you"—at a
•discount because a large amount? No, the same price every
other man paid. Not alone this, but the stock was to be held
in trust until 1910; it was to participate in no profits, but the
1,500,000 shares was to get the income not alone from its own
money, but from the use of this other 8,500,000 shares as it
was issued from time to time, the conditions of its sale being
that it was paid for over a certain period of time. Thus, there
were no doubts as to the fact that any man who owned Bos-
wyocolo and bought it from the company paid 10 cents per
share for it—no more, no less. Is this not as clean as business
«can be?
What is Boswyocolo, and what is its future?
It is a company with a capital of $1,000,000; it was formed
33
to buy the stock of the company owning the great coal mines
in Colorado in North Park, and the stock of the railroad to
carry it to market, as well as other interests along the line.
This is definite, is it not?
I am the President of the company and am paid the same
as the President of any other corporation to attend to its busi¬
ness, and as such I have financed the corporation at par, as
requested, and no commissions are paid any one, so that when
the 10,000,000 shares are outstanding, the company will have
received one million dollars in cash. 1
Its income will be derived from the sale of properties pur¬
chased and dividends upon stocks owned in its Treasury.
It has ambitious plans: it is buying the stock of two cor¬
porations, the railway and coal company, which those most
largely interested believe will be able to earn in a few years
for this company over $4,000,000 every year.
This would mean that the stockholders of Boswyocolo
would have the opportunity to increase their capital to $10.00
per share from 10 cents per share on a 4 per cent, basis, or, in
other words, receive $9.90 in their own stock as a dividend,
paying 4 per cent, dividends for each 10 cents invested.
At the time the stock was publicly sold, and never until
this publication, have these plans been made public to influence
the purchase of a single share, save to those who have sub¬
scribed for any part of the 8,500,000 shares to whom the plans
have been stated.
I now state our plans not to influence your action as to
the purchase or sale of the stock, but simply that the whole
world may know what our plans are to be if we succeed.
No one has; ever been asked to purchase because of these
plans; no one ever will be; but these are the plans.
With the above stated facts, each one knows the price the
stock was sold for, what it is buying, what those interested
expect to see it do: it gives each one an opportunity to act
upon their own judgment with the same knowledge possessed
by any other person on earth. This is fair, is it not?
I wish to state my position on this stock so plainly it can-
34
not be misunderstood. I believe it is going to be one of the
most wonderful flotations in which the public has ever been
interested. I believe that it wil^ gradually pass into strong
hands until it will be no longer a factor in the market; that it
will become practically an inactive stock, thus offering nothing
to the trader and speculator for a quick turn, but be owned
by its real friends for a long pull.
Its future is based on the strength of the railroad and coal
property, both of which today are no longer controlled in the
market.
So that any owner of railroad stock who sells the same
does so with the same knowledge as to its future prospects
that I possess, as well as the buyer of either the railroad or
Boswyocolo.
Present prices on Boswyocolo, Laramie, Acme and Under¬
writers are to pass into history. I have given you the facts
and plans as I know them; you can form your own judgment
as to what seems best for you to do.
85
CONCLUSION.
Our expectations may be challenged by the unfriendly, as
only the actual results wilb be conclusive, but we have the
highest authority in the world to vouch for the soundness of
our position and those who are patient and wait to see the
Laramie, Hahns Peak & Pacific lay down its cars at the coal
mines in North Park next year will be the ones who will spend
the dividends earned and paid.
To accomplish much in life you must be an optimist; you
must have confidence in your country, its institutions and your
associates; you must extend your confidence to some one to
enable you to succeed, and I feel certain that no four com¬
panies have ever been conducted on higher lines than those
mentioned between the covers of this book.
I have only one motive in presenting these facts to you as
a stockholder, and that is, to satisfy you that your reward is
certain and close at hand, and to give you sufficient informa¬
tion to satisfy you of the wisdom of holding now every share
you own.
Critics there may be; you may have despondent and dis¬
couraging moments; your courage may falter at times; doubts
may creep into your mind and, possibly, you have days when
full confidence is lacking; but, with it all, you have held your
stocks because down in your heart somewhere there is somer
thing which tells you that, while you may be impatient, the
result is certain and your interests are in safç and capable
hands.
This business has the indorsement of the class of men who,
you know, have resolute character and who stand for all that
is highest in American business life, and who command the
respect and confidence of their fellow men, even in this day
of vilification and abuse.
You know this, and I am proud of the fact that the four
stocks are generally known on the "street" as my companies.
Sincerely,
ISAAC VAN HORN.
36