The Rutland daily globe. [volume] (Rutland, Vt.) 1873-1877, 1875-04-21
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ueciiheu lnal lncfcupOn SAID Stewart pro-
posed as one of the conditions of said com
promise that said Lyon should withdraw
his objections to the issue of patent from
the United States. and that such patent
should be issued to the owners IN posses
sion OF said mine, conveying to them the
title thereto that the Emma mining COM
pany of New York and said Stewart finally
agreed upon the terms of compromise Of
said Lyons claim, in substance as follows
that in consideration of the discharge of
said claim, and the issue OF such patent
which would settle and confirm the title of
said owners to the mine, the said owners
would agree that the said mine should be
sold for the best price that could be OBJ
tanned therefor that out of the proceeds
OF such sale said owners should first be
paid the sum of 81 800, 900 and the said
Lyon should receive certain percentage
Of any surplus above that sum, which per
centage should not, in any event, exceed
the sum of 100000
ORGANIZATION OF THE COMPANY.
That shortly after the said purchase bv
the defendant and said Baxter, on account
of the peculiar unsettled condition of the
laws in Utah, it was agreed, between all
the owners of said mine, that the manage
ment of its financial affairs should be trans
ferred to the city of New York and that
for its more economical management, and
to keep distinct the several interests of the
owners thereof, a company should be or
ganized under the laws of the state of New
York, and located in New Yoak city, to
take to take the title of said property that
the Emma silver mining company of New
York was organized on the 2Sth day of
April, 1871, with capital stock of So
OOO,0 900, in shares of 500 each. That the
said mine and property was conveyed by
the said l tab company to the said Emma
silver mining company of New York for
the consideration of 50, 900, 600 to be paid
in the stock of said last-named company,
and the said stock was thereupon issued to
the following named persons or in trust
Tor their use, the said persons then being
the owners of the said mine and property,
in the proportions in which said stock was
issued, to-wit +. w. Park, 1880 shares;
II. III. Baxter $500 shares Warren Hus-
sey, 6,252i shares II. B. Chisholm, 8, $685.
shares James Smith, 4,1G61 shares :; j.
II. Walker, 1,042l shares Samuel S. Wal
ker, LOAF shares David +. Walker, L.
041 shares Nathan II. Walker, 1,O414
shares Francis d. Gift, 104li shares
Minerva N. Cunningham, 2G0 shares
James M. Day, 3,l25 shares. But the said
William NJ. Stewart was neither at that
time nor at any other the owner or holder
of any stock OF the Emma silver mining
company of New York, nor had he then
or at any time afterward any interest IN the
property owned by said company except as
hereinafter stated And this defendant
AYERS that the said last mentioned company
was organized in good faith for the pur-
fh,t III Il 4,
all said other owners fully believed that
the said Emma mine and property was at
that time, when the title thereto was Sc
cured by patent from the United States,
worth the sum of S5,000,000.
That all tic Uwliers na,iuS greed IN SAID
settlement with Lyon. that said mine should
be sold to the best advantage, they deter
mined to offer the whole or portion of it
for sale in England that they were in
duced thereto by the reason that many of
the valuable mines of the world were own
ed in England that England was the best
market for mining property that her peo-
pie were best informed concerning such
mines and their value, having many public
journals devoted to the dissemination Of in
formation concerning mining property, and
because almost the entire product of said
Emma mine, both before and after defend
ants purchase had been consigned to and
sold by two firms Of eminent English mer-
chants, who were therefore possessed of
accurate information as to the value of the
product thereof that thereupon this de-
PENDANT and said Stewart, in September,
1871, proceeded to England. this defendant
not having determined the price at which
he would offer said mine, or what interest
therein he would sell that this defendant
saI tkA ,,,tAS 60 Of. ali IL,
holders of said company and the said Stew
art had no interest in or control of the same
beyond that secured by the said agreement
with Lyon, whose interest the said Stewart
was authorized to sell and control. This
defendant, further answering, saith that
Immediately on his arrival in London he
was applied to by - Coates, esq, of the
firm of Coates Il Hankey, named in said
complaint, who desired to purchase the
said Emma mine and mining property, and
after brief negotiation, in which this de-
PENDANT declined to dispose of more than
half of said mine, an agreement was made
between said Coates, acting for his firm and
their associates, and this defendant, of the
following tenor That this defendant would
sell said firm of Coates Il Hankey one-hali
of said Emma NINE and property for the
sum of f40O, 900 sterling, and, if the pur-
chasers so desired, this defendant would
unite with them in the formation of tenn
porary company, to which the entire mine
and property should be conveyed, upon
dition that the entire expense of organiz-
Ing said company should be borne by said
Coates & Hankey, and their associates and
principals and that this defendant and his
associates should receive one-half the stock
of such company in payment for the re-
naming half OF said mine and mining
property. And it was further agreed that
one or more mining engineers, to be APP
pointed Ivy said Coates " llankey, should
forthwith examine said mine, and report
the results of such examination to them,
and such sale was made subject TO such en-
animation and report thereon that sand
Coates Il Iankey selected for these pur-
poses Prof. Ben iamin Silllman of Yale col
lege, New Haven, Conn; that this defend
ant had never seen said Silliman, did not
suggest his name to said Coates Il Hankey,
and neither himself nor any one in his be-
half, or upon his best knowledge and in
formation, in behalf of any other person
connected with said Emma mine, had ever
had any communication with said Silliman
in relation thereto. That, at the request
of said Coates, this defendant commun-
Gated with the defendant Baxter, inform
ing him of the selection OF the said Sill
man as aforesaid, and requested him to no.
tify the said Silliman of his nomination and
request him TO make an examination of said
mine and report the results of said cxamin-
alton to said Coates II Ilankey
THE REPORT OF PROF sILLIMAN.
That il was Il special condition of said
agreement that the report of said Prof. Sill
liman should be made to the said Coates Il
Hankey, and not TO this defendant or his
associates. This defendant, upon informa-
ton and belief, AYERS that the defendant
Baxter, IN pursuance of this defendants
said request, did agree with said Prof. Sill
liman to make such examination and re-
port. That the only communication made
TO or request made of said Slliman was
that he should proceed to Utah, make u
professional examination of said mine and
report thereon to the said Coates II Hankey,
for which service this defendant and his
associates would pay him a proper and
eouitahla comnens ton. That neither this