The Rutland daily globe. [volume] (Rutland, Vt.) 1873-1877, 1875-04-21

defendant or the said Baxter that all the
statements therein contained relating to the
then past history and product Of said mine
we're derived from or verified by the books
OF the consignees hereinbefore mentioned;
THAT the correctness of said statements was
so examined and verified by said directors
before the said prospectus was issued that
all the facts therein stated relating to the
ores in and about the said mine derived
from the report of the said Silliman, and
from other sources, were in like manner,
examined and verified to the satisfaction of
said directors; and all the facts stated in
said prospectus were fully believed by all
the said directors and officers of the plain
tiff company in all respects to be true. And
this defendant ayers that the said prospec-
tus was issued by, and the same in all its
details was authorized and approved by,
the plaintiff company. That the same was
not submitted to or authorized by this de-
PENDANT, the said Baxter or said Stewart,
nor were either Of them responsible for
any of the facts or statements therein con-
tanned; nevertheless, this defendant AYERS
that each and every statement in said pros
pectus contained was not only believed to
be true by this defendant at the time the
same was issued, but this defendant had no
reason to believe, nor did he believe at that
time, nor does he now believe, that any
fact, statement, or representation in said
prospectus contained was, in any respect,
false or untrue.
THE ERROR IN THE sIJLIMAN REPORT.
And this defendant further says that the
said Silliman, in his said report, upon in
formation derived from the books and EN-
ployes of said mine, or at Salt Lake City,
and not upon his own measurement or ex-
animation, had estimated the quantity of
ores accrued and ready for shipment, and
in the ore-house, and on the floors Of the
mine ready to be sold, at $500 tons; that
this defendant had estimated said ores TO
Coates & Hankey at 1, 750 tons. but on re-
ceiving said report supposed he had made
an error, and at the time said report was
made believed said qualities to be correctly
stated by estimate; that inasmuch as the
said ores had not been measured by said
Sillman it was agreed by this defendant
and the directors of said company that, if
any error should be discovered in such es-
innate, it should be corrected according to
equity; that afterward this defendant was
informed that by an error in the statement
from the books at Salt Lake City the said
quantity had been over-estimated, and that
there were only 800 tons of such ores then
out and that this defendant at once in.
formed said directors of the error, and paid
to them the sum of over $4,000 for said
deficiency; that such error was never in
any way concealed or kept secret; that all
the parties well knew it arose from accident
or mistake. And this defendant further
says that with this exception the weight and
quantity of silver ores then exposed in and
about said mine we're in no respect or par
.cular overstated or overestimated by said
Sillman, but the plaintiff company has,
since the date of said report, taken from
said mine many thousand tons of silver ore
in excess of the quantity so estimated by
said Silliman in his said report.
And this defendant further says, that af-
ter himself and said Baxter acquired their
interest in said mine, the same was worked
and operated diligently, and as such mines
usually are, without any intermission or
suspension, and the silver ore extracted
therefrom was forwarded, in regular course
to the consigneas hereinbefore named. And
this defendant AYERS that after he acquired
his interest in said mine, and down to the
time when the same was transferred to said
plaintiffs, the mine was worked in the due
and regular course of business as mines Or
dinarily are, and as it had been previously,
and not otherwise; and that all the state
ments contained in said complaint, to the
contrary thereof, and especially all the
statements contained in folio 80 to 30
inclusive, are wholly false and untrue.
That in due course the said plaintiff CON-
pany was duly organized; one-half of its
said capital stock was issued to the vendors
and the balance thereof subscribed by a
large number, and more than 1000 stock
holders, and paid into the company, and
the said Emma mine and property were
conveyed by the Emma mining company of
New York to the plaintiff company, all the
to the entire satisfaction of the plaintiff
corporation, and the directors, officers and
stockholders thereof; and the price agreed,
in addition to the issue of said stock, was
paid to this defendant and the other share
holders in the Emma mining company of
New York, to their full satisfaction; and
the said plaintiff company thereupon enter
ed into possession of said mine and prop
erty, and hath ever since continued in pos
session of the same, and in the full enjoy
ment of the profits thereof. And this de-
PENDANT AYERS that in all his acts and ne
gotiations, in respect to the sale of said
mine down to the completion thereof, he
acted and claimed to act exclusively as
the agent of the Emma silver mining com.
pany of New York, and not in his own be-
half, or in behalf of said Baxter, except as
they were stockholders in said last named
company, all which was well known to the
plaintiffs and all persons acting in their be.
half; and that on the completion of said
sale, the mine and property were conveyed
by said Emma mining company of New
York to the plaintiffs, to wit, on the 30tt
day of November. 1871. And this defen
dant AYERS that during the aforesaid nego
tiations, and at the close thereof, and al
and before the conveyance of the said mine
to thelsaid plaintiffs, and the payment there
for, every fact, circumstance, and particu
lar material to the then present value or the
future prospects of said mine that was
known to this defendant, or to the defend
ant Baxter, or that was then capable of be.
ing known by either of them, or by any
acquaintance with its past history, was fully
known to and understood by the PLAINTIFF
and all persons who acted in behalf of the
plaintiffs in said negotiation and safe.
THE REAL RESOURCES OF THE MINE.
And this defendant AYERS that the only
fact then material to the value of said mine
that was not known to the plaintiffs or theii
said agents, was the future duration of the
vein or deposit of ore beyond what was al
the time disclosed by the working of the
same, which fact, as this defendant ayers
and believes, was impossible to be known
or positively ascertained either by obserya
ton or by the use of any scientific research
or practical experience. And it was Their
fully understood by the plaintiffs and theiI
said agents, that in making said purchase
the plaintiffs took the risk of the future du
ration and extent of said vein or deposit
beyond what was then visible. as the
purchasers of mining properly alwayi
and necessarily do; and this defendant
AYERS that the said mine and property, as i
stood at the time of said sale and convey
ance, was well worth, subject to that risk
the amount paid therefor as aforesaid, in
asmuch as the conveyance included no
only the mine and large quantity Of silve
ore therein, then actually visible, but also
large quantity of ores of the seconC
class then on hand at said mine, larg,
amount of ore then in transit to England