The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1866-12-12
SUPREME couRI-cHAMBEns.
The Alleged DownIcviIie Gold Mining Conn
pany Frauds-Iotion TO Set Aside m Order
Of Arrest.

The Alleged DownieviIIe Gold Mining Com
pany Frauds-1Iotion to Set Aside Order
Before Judge Ingraham.
Jdma Fisk IT, Wiuiam Belden and Theodore NJ Bur
ton u.s. j. @. Rfley, r. A. Wheeler and j. c. Ha,vioa. =
This up yesterday a motion 10 discharge
of the defendants Wheeler. from The CON-
plant sets forth that the defendants borrowed from the
plaintiffs. on tho 9th ofANovomber 1865, $500 and
81, 600, making the sum OF So, 700, which is
turned and for which judgment is asked. The answer
Of Riley denies the loan OF $500, and says tho
81 900 was loan, payable demand, and that no
demand has been made, and Wheeler ayers that he
&C cd only AZ Rley's agent He deposited shares OF
Downeve gold stock TO the loan. and tho tl2 700
To be rccouped at November 7, either by
safe OF the stock by the plaintiffs deposit OF the
amount Of tho loan BY Riley Ito does not know whether
the plaintiffs sold tho stock or not
The plaintiffs affdavits, upon which the order ~ ar
rest was granted, 10 tho effect that on The th 81
November Wheeler brought Belden Eve thoa~saf shares
Of Downcvile gold stock, Which was thee peLng a.
81 IS per share; said he owned all tbs sock of
the company, and wanted plaintiff y ~, - Am
two thousand shares and advance $1,000. and the
purchase money for two thousand shAfeA, n thcy
could DO Procured that stock could not 20 down ne
owned u all &c Relying this, tie plaIntlns acceded
hts request and found that lis we're
iae thai lac did not own the stock that II for sale
at 81 per share, that difficult to get that prize for
It, and that Wheeler knew It plentiful in the Market
and would 20 down, &C.
The afdavit Of Wheeler, upon the motion TO vscaie
tho order Of arrest sets forth that he In Rileys
employ, attending transactions IN Downievlile stock
and proposed on November 8 10 deposit with plaintiffs
i've thousand shares OF Downevs stock Margin they
20 buy aud soil other stock that company he might
direct, tho siork then selling al 81 IS share; he did
not tell Beden he owned all the stock, bat that the
spool" WHO YER operating Ia owned or controlled the
whole OF u, which he sad Rilcy's authority, and
still believes; plaintiffs accepted the Offer and he
made written contract With them authorizing
them 10 soil the stock, lie 10 keep his margin
good, which no did until his arrest On
November he deposited 000 shares OF the same stock
and received from them 5000 be repaid on call on
November q; whom tho loan fe due on the I'm he be-
eves the stock would have brought enough 10 cover
az did not say the stock could not 20 down on Noycm
Der he directed plaintiffs 10 purchase on his account
900 shares Of the stock which they did he believes
they could have sold the entire stock before suit brought
for enough 70 their whole advances; he never
acknowledged that he knew the morning Of Novem-
Der before he got advances that II impossible for
them 70 maintain the market price OF the stock; since
his Bcldan has used threatening lang age him,
aud said no should leave jail tl he proved his
nocenca
The case is one arising out OF the alleged notorious
Downicville Gold Mining Company frauds Inc defend
ants Wheeler and Riley. arrvstcd for their ALLEGED
completely In these Frauds and wheeler now moves 70
10 The order Of arrest
The opposing counsel contend that there Il doubt
Of the piands right TO recover or OF Whceers repre-
sentatons and OF their fasiy Counsel for the motion
admit the loan and Ia paymenI but hold that there
was no intention 10 defraud that fraud was pcre-
trated demand for payment had been made. Case
srgued decision reserved For tbs plaintiffs. Dudley
field