The San Francisco Call. Newspaper, December 26, 1898, Page 1

——— This Paper to be § not ; taken from the Libr’ary,o‘.. i The Call to be This Paper not the Library.++++ taken from VOLUME LXXXV._NO. 26. SAN FRANCISCO, MONDAY, DECEMBER 26, 1898. PRICE FIVE CENT D. M. Burns, who by the grace of |friend that is now presented. This story the Southern Pacific Company to step from a Mexican dun n or the floor of the United States Sen is' known by reputation to every man, woman and child In California. That reputation he flaunts in their faces with all the effrontery of a painted denizen of the slums. Burns unen notor: > retired from fice Clerk of Yolo short in his accounts to th $2500, which his bonc Burns afterward This portio to on the ¢ in Metropo ago by Capt used this langua Afterward Burns became Secretary of State and while occupying that po- sition became a defaulter to the ex- tent of $31,000. He fled to Honolulu, but afterward returned and was tried, but escaped conviction on the plea that the money was stolen by his deputy, Reynolde, the latter in having been acquitted of the charge, his defense being that F was t defaulter. Burns con that he falsified the books of his office the meantime same to cover up the shortage. After his acquittal on the criminal charge Burns was sued by the State fc the recovery of the money, but he took advantage of the statute « itations and on that plea evaded payment. He still owes that tum of money to the State. and still ove: of his official misc up by one man whe him, sent to Mexico, of a mine and w on the road to ho chose the shorte of duplicity succeeded friend and ben worth millions, though ns adorned Mexican prison. large again, and f purposes of own the Sou cific is striving by every means at it command to place Burns in the United States Senate, It is not a pleasant task to spread the infamy of a man before the world, but The Call oes it to the people of Cali- forni to expose his dish ty in all its | said Bryan leaving the busini phases, that the country may know what manner of person this gigantic corporation is ende ng to place in one of the highest ces. Burns’ record in California is known | to all; it is the full story of his theft of the famous Candelaria mine in M jco and the robbery of his stanc DANIEL M. BURNS" BETRAYAL OF A FRIEND AND BENEFACTOR BASE INGRATITUDE SHOWN COLUMBUS WATERHOUSE. He Was the Man Who Put Him on the Road to Make an Honest Fortune. Burns’ Imprisonment. is test told in an affidavit made Columbus Waterhouse, Burns’ duplicity, on July year after he had discovered the treachery by which he had been plun- d and had withdrawn In disgust further assoclation with his This affidavit tells in detail by house had sent Burns to acing him in charge of the how B had repaid him | | g to every despicable and means to defraud him of his share in the property. The affidavit reads as follows: | State of California, ise, being 8 f the city and f San Francisco, State of C: t he entered Into an agreement M. n to go to Mexico a view of procuring a certain mine h funds for the ch, if successful, said Bryan affiant’s nephew, C. Water- were to have a small i one D. M. Burn Mexico, and was to meet s , and they were to prosec togethe Said Bryan met said at Culican, Sinaloa. Several mines | were Vv ed. One was located and de- nounced. Papers were taken out and were to be forwarded to affant by said Burns, ss in sald hands. However, no papers were nt, to the great disappointment of said Bryan. The St. Nicholas mine was bonded and considered a great bargain. The comple- Burns tion of papers, etc., were also left to said Burns for execution with the same result, Said Bryan returned to San Francisco on or about the 3d day of September, 1S8S: said Burns remaining in Sinaloa. claims Bryan these properties were o h sald. Burns. On re- trip he met one O Bran- superintendent of La Candelar one James D. Schuyler, supe ent and engineer of the Culican ad ger on the steamer. t was entered into betweer Schuyler and B: both York, subject to Said Bryan and 3 1 and repor! s of agreement was said Schuyler and about to v New y agreed to make necessary per arrangements with the own- ers of La Candelarla mine for a satis- factory lease or working bond for a term of three years. After a thorough exam- the victim of | ination of all papers, etc., by said Schuy- 13, 1891, about | ler, with the assistance of Brandorf, all being apparently satisfactory, said Schuy- ler reported to said affiant that they had obtained for said aflant a bond for the term of three years for the sum of fifty thousand dollars (3$50,000), said afflant to pay all indebtedness then due on _the mine for working and supplies to Don Clementia Laviaga and the parish priest. The bond was procured in the name of said J. D. Schuyler and affiant. Sald Brandorf's expenses here and to San 4 return to New York were furnished wholly by afflant. The mine was to _be divided in interests as follows: ven-twelfths ive two-twelfths (2-12), and J. 2 Bryan nd C. P. Waterhouse each were to receive one-twelfth (1-12), and said D. M. Burns, should he eventually become interested, was to receive one- twelfth (1- Said afflant agreed to fur- nish the necessary means for working the mine to the amount of ten thousand dollars ($10,000). Arrangements were made with J. M. Bryan as superintendent and with said Brandorf to go to San Dimas, and if the property proved satisfactory after due examination to take possession of the same by the authority of sald Bran- dort gent of the New York owners. Funds to the amount of seven thousand dollars (§7000) were furnished by affiant to aid Bryan and Brandorf with which they were 0 settle all the indebtedness on the mine. On or about January 5, 1884, sald Bryan CHANGED To HERE REMOVED HERE IN RESIDENGE 114 1978 QF THE 5.P COMPANY3 CANDIDATE FOR.U,5.SENATOR - L FROM THE and Brandorf started for San Dimas over- land via Durango, and arrived at above place on or about the 20th day of Janu- ary, 18%4. The indebtedness of the mine was found to be nine thousand and twen- ty-five dollars and seventy-seven cents ($902577). At the close of March affiant’s expenses had amounted to eleven thou- sand six hundred and twenty-two dollars and twenty-two cents $11,62223). At the close of July they amounted to eighteen thousand seven hundred and eighty-two dollars and_eighty-six cents ($18,752 86). In April sald Bryan asked to be relieved of the superintendency of the mine and to have a successor appointed. Upon his recommendation Fred Jones was sent as superintendent, accompanied by Theodore Ruppley and Levi David. They left San Francisco in May, 1884, via Mazatlan, and arrived in San Dimas in June, 1884. Said Bryan returned to San Francisco by way. of Durango, arriving in San Francisco September 4, 1884. e development of the mine was continued under Jones’ su- perintendency, assisted by sald Brandorf as clerk and interpreter. In February, PRISON CELL TO THE 1885, Jones asked to be relieved of the su- perintendency of the mine. Said Ruppley returned to San Francisco on the 20th day of April, 1885, accompanied by said Brandorf. Negotiations = were ' entered into with said M. Burns during the month of April through the eager solici- tations of said C. P. Waterhouse to visit and examine the mine and report on same,. and if found satisfactory to-act as super- intendent. At that time said Burns was being criminally prosecuted by the State, and was detalned until June 1, 1885, at which time he sailed for Mazatlan, en route for San Dimas, and arrived there the same month. Said Burns was te re- ceive a salary as compensation for his services, with” the understanding that if he made a success of the venture he was to receive a one-twelfth (1-12) interest in the property. At said tlme the outlay made by afflant had amounted in the ag- gregate to the sum of thirty-four thou- sand thirty-five hundred and ninety-one dollars and ninety-one cents ($34,591 91) and afflant thereupon demanded of said Schuyler and brother that they (Schuyler and brother) assign to afflant one-half (16) of their interest in sald mine, or that in default of said affiant that he pay his pro rata of all expenses over and. above the sum of then thousand dollars ($10,000), previously agreed upon. % Said Schuyler complied with said de- mand and assigned to said affiant one- half (3) of said interest. The sald de- mand was made upon said Bryan and he complied in a like manner. Sald Burns took possession of said mine as superin- tendent upon his arrival and reported in favor of equipping the mine with ma- chinery. Arrangements were immediately made ‘for the same. Said C. P. Water- house on December 7, 1885, started, ac- companied by Albert Schindler, a brother- in-law of said Burns, with the machinery. Said Schindler was employed at the earnest solicitation of said Burns. They arrived in San Dimas in the latter part of December, at which time afflant had advanced in gold coin the sum of forty- nine thousand one hundred and fifty-three dollars _and four ‘cents ' ($49,159 04). In April, 1886, pans, settlers, a new Bryan mill, pipe and other machinery were shipped to the mine. . - Theodore Ruppley again returned to the mine in June, 1885, but said Burns made it so disagreeable for him that he was' com- clled to return. At the close of June, 886, the outlay' made by afflant had amounted to;the sum of sixty-nine thou- Sn6 Givens. of the R of Jonss & ot one Givens, of the firm ones . both-of lthem‘lnumu friends o d $69,000), and/about: this. time Burns. and said C. P. Waterhouse, solicit- ed afflant to sell to them one-twelfth (1-12) | interest in said mine for a one-ninth (1-9) part of the outlay made by affiant, with the understanding and agreement | that all of the outlay should be paid back | to affiant, and said Jones and Givens the | amount paid by them to affiant before any dividends were to be pafd. | On the 10th day of December, 1886, at the earnest solicitation of said Burns, afflant visited the mine accompanied by one E. A. Sherman, as surveyor and civil engineer. Afflant arrived there on the | 25th day of December, 18%. On affiant’s | Teturn he was accompanied by said Burns. At that time the mine was a | bonanza, the prospects were encouraging and afflant and said Burns decided to pur- | chase a wire tramway for the purpose of | carrying the ore from the mine down to | the mill. - At this time said Burns repre- | sented that he had examined and sur- | veyed the mine, and reported that the! workings underground were outside of | the llmits of the Candelaria mine. | Afflant, trusting the representations of | said Burns, at his earnest solicitation and | after much persuasion from said Burns | denounced the adjoining ground, believ- ing it to be outside of the ground owned by the Candelaria Mining Company. | This mine was named the Sacramento, and in it was located a rich bonanza. The | denouncement was made by afflant, said | Burns and said C. P. Waterhouse for the interest of the company, as heretofore described, and with the distinct under- standing that the same iInterest ratio and proportion as held by each party should continue to be held In the property ac- quired by the new denouncement and | called the Sacramento mine. This de- nouncement was made during the month | of January, 1887. In February, upon affiant’s return to San Francisco, a wire tramway was purchased and shipped to | the mine on or about March 16, 1887, at | which time saiud Burns also returned to | said mine. In December, 1887, at the solicitation and request of said Burns and said C. P. Wa- terhouse afflant agaln visited said mine accompanied by sald C. 8. Givens. Afflant also visited the Guadaloupe or Contra Estaca group of mines, four miles below San Dimas on the Jacenta creek. | While in Mexico at this time affiant pur- chased for the benefit of himself and his associates the mills and water rights on e En:.lu creek, k::wnfaa E‘ui:-x mox-unt and Lucia, paying therefore the sum o six. thouu.ntr ‘dollars ($6000.00) in Mexican coin. - During this visit sald’ Burns ‘was .constantly- with -aflagt and sald C. P.)keon%omm as a personal TRYING TO-GET HERETIN'189 “BY THE‘Gsfitfizfifflmfité'e*m%fi'isg&) UNITED STATES SENATE? ‘Waterhouse and said Givens did not, visit the mine or any of the mining property but once, but were constantly in conver- sation together. Said Burns and said C. P. Waterhouse, although the most inti- mate of friends, at this time pretended to afflant that they were unfriendly to each Said C. P. Waterhouse and said Givens were apparently planing some | work or scheme to be undertaken. Said Burns pretended to dislike said C. P. Wa- terhouse, and to believe that said C. P. ‘Waterhouse was unfriendly to affiant, and stated that said C. P. Waterhouse was lazy and of no use to him. Said Burns solicited of afflant an additional interest in the mine, stating that said C. P. Wa- terhouse was valueless, and led affiant to believe that said C. P. Waterhouse and sald Givens were working against the in- terests of affiant, and earnestly persiaded affiant to believe that if aflant would give the sald Burns an additional interest in said mine that then said Burns would | always _be friendly to affiant and pro- | tect afflant’s interests against all other | parties, and said interest was gh’en to | said Burns on the distinct understanding and condition that all knowledge of it should be kept from said C. P. Water- | house and others. and said Purrs aevoad | | that when the mine should be incorpor- | ated that he would prevent said -C. £. Waterhouse from demanding more thau | one-twelfth (1-12) interest and led affiant | to believe that if said C. P. Waterhouse | should demand any additional interest in | safd property that then sald Burns would | give it to him out of the interest which | he was to receive. It was agreed that the stock representing the additional = two- twelfths (2-12). interest, which affiant gave to said Burns, should be taken out in the | name of afflant as trustee and remain a | secret between sald Waterhouse and said | Burns. All of these negotlations were part of a premeditated fraud upon affiant and said Burns and said C. P. Water- house, as soon as said Burns had received an agreement for said interest, he and C. | P. Waterhouse became again friendly, and said Burns related all of the circum- stances of the procuring of his interest to | said C. P. Waterhouse, and upon incor- | porating said C. P. Waterhouse demanded two-twelftus (2-12) interest. | Affiant further avers that the gift made | by him to said Burns under said agree- | ment was a_conditional one with the con- ditions hereinbefore set out, and that by | reason of said conditions having not been ! carried out’affiant believes said gift to have been canceled. That in the latter | part of February, 1887, affiant shipped a | third Bryan mill to the mine, siXx more | pans, two settlers, and. other machinery. | ‘While afflant was in Mexico the last time | as aforesaid, the mine was a bonanza of | exceedini richness and of ver; reat and | apparently inexhaustible condition. The | mills were turning out from forty to | seventy-six bars of bullion monthly.” The | price fixed on said mine In case of sale | was two million do..ars ($2,000,000). One ‘Wilson, a well-known mining expert, ex- amined the mine and recommended its | purchase for said sum. On the 13th day | of April, 1887, accumganled by said Givens, J‘ affiant started for the State of New York for the purpose of completing the pur- chase of sald mine from the New York owners. Upon afflant’s arrival in New York, said purchase was consummated upon the payment of fifty thousand aol- lars ($50,000) in gold coin, and afflant re- ceived a deed from said parties therefor, | In May, 1889, a great deal of talk occurred between affiant and Givens in relation to the incorporation of said mining prop- erty. Givens was all of the time con- | sulting and planni with satd Burns | and sald C. P. Waterhouse. All of said | parties pretended to have some feeling against afflant, and it now appears very plain to affiant that their object was to make afflant discouraged and to make him feel that there was a lack of har- mony and thus purchase his interest for a trifling sum. Said J)anles insisted upon having four of the directors of the cor- poration, although affiant was legally en- titled to three directors, and in order not to have any lack of harmony, afflant ac- ceded to all the demands made by said parties, October, 1888, on incorporating. At this time also said Givens immediate- 1y took charge of the San Francisco - r{c ndence, the ndence ?.'- ‘one - -between said Givens and said Burns, the suverin- tendent of the mine, and as much knowl- edge as possible was kept from affiant. This all’ seemed to be part of an under- standing, plan and scheme between said parties. Said Burns immediately came to: California, and said Givens and said . P. Waterhouse refused to_ assist in the incorporation until he had done so. In fact said Givens prepared pretended articles of incorporation, which were in every respect illegal in form and had to be rejected by affiant.” Said Burns re- turned to California and said C. P. Water- house also returned from Wisconsin, and the company was incorporated, to which company a pretended conveyance was made. The "incorporation was formed without the adoption of any of affiant’s suggestions, and without the compliance of one of afflant’s wishes, and immediately said C. P. Waterhouse, assisted by said Burns, demanded an_ additional _one- twelfth (1-12) interest by reason of the denduncement he had made, although sald C. P~Waterhouse had been affilant's clerk, at a salary of one hundred and fifty dollars (3150) per month, and claimed that by reason of having given said Burns an additional interest that he was entitled to the same additional interest, basing his claims upon the assignment made to Burns. 'his, -of course, made it very plain that Burns had violated his agree- ment and was working with. said C. P. Waterhouse. Said Burns,' C. P. Water- house and Givens made affiant’'s life mis- erable and distracted, so much that finally he consented to give said C. P. Water- house said additional interest. The cor- poration was organized, afiant was elect- ed president, C. P. Waterhouse vice presi- dent, C. 8. Givens, secretarv, and D. M. Burns, = superintendent. Thereupon the office was immediately removed to the office of Jones & Give: and the general management of the business of the cor- oration was taken possession of by said ivens and Burns, and all of the business was, as far as possible, kept from the knowledge of afflant. At the time afflant was in Mexico he made an agreement that of all other prop- erties acquired by him affiant should be- come the owner of nine-twelfths (9-12) of the same. - During the year 1837, before the incorporation, etc., afflant learned that said Burns and said C. P. Waterhouse had been using funds previously sent for the purpose of the Candalaria mine in aoc- quiring other mining property, and that they spent quite a large sum of affiant’s .money without affiant's knowledge of ap~ proval, and by reason of said expenditure of money they have acquired what is known as the Contra Estaca or Guada- loupe mines, which they have appropriat- ed to their own use, and of which afflant should receive at least a nine-twelfths (9-12) interest in, and afflant believes and claims that he is the owner of a nine- | twelfths (9-12) interest in all of said min ing property, and although the said mine at all of these times was a rich bonanza they claimed it was exhausted and that it was in low grade ores and waste, and stated at a meet- Inf of the board of directors that the mine had become a low grade proposition and must be considered in that lght; that it would require great expenditure for large and additional machinery, and that the prospects of the mine were very poor, all of which statements were false and ‘wholly untrue, but at that time were be- lleved and trusted in by affiant. All of the correspondence at this time, with the exception of a few short letters, were kept secret from affiant, and affiant, by reason of the representations made as aforesaid, came to believe that the mine was of small value. That said C. P. Wa- terhouse is the nephew of affiant. That in his boyhood he was poor and without means of support. That affiant gave him employment, supported his mother for him, and reared him from his boyhood and was entitled to believe all that he said.- That affiant also took D. M. Burns from the despondency of criminal prose- cution and a_condition of the most abject poverty. and gave him said pesition as superintendent of said mine. hat at all said times said Burns pretended to have a great affection for affiant, he going so far as to say that afflant was his Christ and Savior, and afflant bellieved and con- fided in said Byrns' fidelity and truthful- ness to afiant. That nelther sajd Burns