Sutro Tunnel Co. signed by Theodore Sutro - 1888 dated Autograph Stock Certificate
Inv# AG1588 Stock
Stock signed by Theodore Sutro (1845-1927) who was instrumental in the establishment of the Sutro Tunnel Company, which was founded by Adolph Sutro to create a drainage tunnel beneath the Comstock Lode in Virginia City, Nevada. Sutro's initial partners in this venture included William M. Stewart, D.E. Avery, Louis Janin, Jr., and H.K. Mitchell. On February 4, 1865, the Nevada legislature granted the company an exclusive franchise to construct a drainage tunnel that would commence in the foothills of the Carson River Valley in Lyon County and conclude in the Comstock Lode of Virginia City. Additionally, the Sutro Tunnel Company received a charter allowing it to sink mining shafts along the tunnel's route, provided that these did not infringe upon the rights of miners with existing claims.
On July 25, 1866, the U.S. Congress awarded the Sutro Tunnel Company an exclusive charter, which permitted Sutro to acquire public land at a rate of $1.25 per acre for tunnel construction and $5.00 per acre for land within 2,000 feet of the tunnel that contained mineral veins and lodes. The charter also mandated that all individuals, companies, or corporations with claims benefiting from the tunnel would be obligated to contribute to its operational costs. Sutro faced significant challenges in securing the necessary capital for construction. Although the sale of stock in the Sutro Tunnel Company allowed construction to commence in 1869, he ultimately sought financial support from England, where, starting in 1872, he secured substantial funding from the banking firm of McCalmont Brothers and Company. The tunnel was connected to the Savage Mine in 1878, and contracts to finance lateral tunnels were established with twenty-four mining companies in April of the subsequent year. The tunnel project was completed two months later, and by 1880, Sutro had divested his stock in the company. The tunnel operated for fifty years and successfully drained hot water from the mines; however, it proved financially unviable, as the stock became worthless with the decline of the Comstock Lode.
The mortgage holders, McCalmont Brothers & Co., initiated foreclosure proceedings, presenting a principal and interest amount of $2,023,833, of which they reportedly received $1,000,000 as a compromise when the property was sold during foreclosure in 1889. Aside from this sum, no further repayment for the tunnel's expenses was made. Several former stockholders established a new entity known as the Comstock Tunnel Company, assuming control of the property, with Theodore Sutro appointed as President. Born in Aachen in 1845, Theodore Sutro was a distinguished lawyer in New York City who played a crucial role in securing funding for his brother's significant project. In 1887, he effectively defended the interests of the Sutro Tunnel Company and subsequently organized its successor, the Comstock Tunnel Company. Theodore Sutro was also involved in the 1894 reform campaign in New York and is recognized as an expert in taxation law. Additionally, his brother Otto Sutro, a musician and merchant, founded the Oratorio Society of Baltimore and was influential in the city's musical heritage.
A stock certificate is issued by businesses, usually companies. A stock is part of the permanent finance of a business. Normally, they are never repaid, and the investor can recover his/her money only by selling to another investor. Most stocks, or also called shares, earn dividends, at the business's discretion, depending on how well it has traded. A stockholder or shareholder is a part-owner of the business that issued the stock certificates.
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