Beautiful stock certificate from the Atlantic-Pacific Railway Tunnel Company
countersigned in 1885. This historic document was printed by the Railway & Bankers Eng. & Lith, Company and has an ornate border around it with a vignette of an mountain range showing Torry's Peak, Mt. of Holy Cross, Kelso Mountain and Loveland Pass. This item has the original signatures of the President, A. S. Whitaker and Secretary and is over 133 years old.
September 20, 1896 The New York Times
Published: September 20, 1896 The New York Times
TUNNEL IN DISPUTE
TROUBLE OVER "BRICK" POMEROY'S GREAT PROJECT.
Eastern Stockholders in the $2,OOO,000 Idea of Tunnelling Mount
Kelso, Col., Meet and Accuse A.
S. Whitaker and :8. F. George?
Officials of the Corporation, of
Letting Taxes Go Unpaid and 'men
::Buying at a Tax Sale.
A meeting of the Eastern stockholders of
Atlantic-Pacific Ra.ilroad Tunnel' Company,
I a scheme of the late "Brick" Pomeroy,
I· was held in the. Hotel Normandie last Fri-
I day night for the purpose of preventing ,
the cal'ry-ing out of what the stockholders
think Is a fraud on the part· of certain
officers of the company .
. A lawsuit is meditated agaInst these
· officials and O. L. Snyder of Buffalo, the
attorney for the stockholders, has instructed
Messrs. Ridell, Starkweller &
Dixon, Denver lawyers, .to bring suit in the
, name of Mrs. M. E. Hoyt of this State, and
certain other stockhOlders .
.. Brick" Pomeroy, wh"o died in poverty in
ihls city a. few lDonths ago, was during
much of hiSllife absorbed In various schemes
in Western towns. He conceived the idea,
while livlng in Denver, of dIgging a tunnel
through l\fount Kelso, in Colorado, about
sixty miles from Denver, thereby shortening
the route from Denver to Salt Lake
City 250 miles. InCidentally, he expected
that he and all hands concerned in the
scheme would get rich through the mining
of ores in the mountaIn during the progress
of the tunnel.
Capitali7:ed i'or $7,000,000.
He succeeded in organizing a company in
1880, which toe called the At1antlc~Paclfic
Railroad Tunnel Company. It was capitalized
at $7,000,000, ot which It was claimed
about. $1,000,000 was subscribed. It was a
Denver corporation, but the bulk of the
shares was held by Eastern purchasers.
Mr. Pomeroy was President of' the company,
and A. S. Whitaker of Denver was
made Secretary .and Vice President, whHe
B. F. George of Denver was contractor.
The work of digging the tunnel progressed
slowly, until about one-fourth of the entire
five miles had been dug out. Then the work
The meeting of tlle stockholders Friday
night was held to devise ways and mea.lIs to
keep the propertr in the hands of its present
owners. AccoI:ding to MI: . .snyde., ::lUSpicion
that thIngs were not right was
aroused when the Eastern stockholders received
a, cIrcular, dated July 3, markeu
.. confidential," saying that a. new tunnel
· company had been organized in order to
preserve the property. The circular stated
that certain property of the tunnel compa.
ny In Mount Kel~o had been sold in
1890 for back taxes, and that, as the ba.ck
taxes had been paid for three consecutive
years by the same person, under the Jaws
of Colorado he had 'received a deed for the
property from the County Treasurer.
Asked to. Subllcribe t.or Taxes.
The circula.r stated furtller that by last
August the taxes would have run another
three yea.rs without being paid, and that, as
· they covered all the holdings of thE> com,
pany, unless they should be paid the com!.
pany would lose eVerything. Each wrson
: receIving the cIrcUlar was requested to
· subscribe toward paying the taxes and reorganizing
the company. '1'he circular was
slgned by Whitaker & George. When Mrs.
Hoyt received it she authorized Mr. Snyder
to look Into the matter. The result is the
current proceedings. Mr. Snyder said last
.. We found, on investigation, that the reorganiza.
tion schem~ of the Denver officers
was nothing but an attempt to steal the
property from the stockholder's. Their
method has been to allOW the taxes to run
in arrears, allow them to be paid by their
agent, and thus permit the property to be
sold. The nature of this scneme becomes
more patent when it 1£ known that the
taxes the non-payment of which caused
the most important part of the tunnel to
be sold amounted to only $38.
"It was the busIness of the officIals of
the company in Denver to see that these
taxes were paid .
.. The property which· was sold for nonpayment
is tlie Poposi lode, the Bonn lode,
the Sonora lode, and the Great West lode.
This property lies at each entrance to the
tunnel, and as it is now in the hands of the
conspirators, they calculate upon controlling
the rest of it by virtue of their advantage
.. These men kept their deSigns quiet until
the death of Mr. Pomeroy. Then they sent
out their circular of July 3 .
.. Another circular was sent out from
Denver, dated Aug. 26, explaining that at a
meeting In Denver a few days previously
the company had ·been reorganj~edunder
the nalne of the Atlantic-PacUic Railroad
TUnnel and Mining Company, with a capitalization
of $5,000,000. The circular stated
that Messrs. George and Whitaker, in accordance
with their saving fund circulars,
issued preViOUSlY, had recovered the properties
of the tunnel company (which were
lost to us) by a • purchase of all the lost
properties, paying all ta,xes, liens, and judgments
on the East End properties to da.t~.'
So:me Question", Put .
• , NoW, what we desire to know and are
trying to discover is WIlY the tunnel was
lost in the first place for the sake of a few
dollars' worth of taxes, and wny. when the
taxes were charged to the tunnel company,
they were aU paid except those on property