The Mesilla Valley independent. [volume] (Mesilla, N.M.) 1877-1879, 1878-06-08
Flood . O'Brien's Statement.
San Francisco. May e

San Francisco, May -.
Last Saturday compIsiRt wAs flied in the
Twelfth District Court by John Burke,
against the mrmheFs Of the firm of Flood &
0'Bgicn. trustees n the Consolidated viryi
mia Nining. Nevada Bank and Mill Finm-.
and the water companies under the cnn'rnI
Of the BonAnza firm, FIR the recovery Of s3s.-
634.30s. alleged 10 have been wrpngfully
diverted By dafendaais from Observation-Disclosures
Of the Consolidated Virginia in their man
agement Of the mine To-.lay's Bulletin
publishes statement from the firm of Fioo.i
4 0'Brien. three columns In length, giving
their TeFsioG If the causes which have led ID,
bringing the suit ss we'll as statements cri-
tieising their mapAgemept, which hare APP
peAred from time tn time in print or have
besH circulated on the street. Ii is the first
repIy ever publicly made l,y the firm to &C
cusarioas against tl,em. Foliowing is sum
mWy:
In 1874 vhrn the Big Bonanza was being
developed, Squire P. Dewey became pur-
chaser Of Consolidated virginia stuck to the
amount II Alnut 5000 shares The pur
chase was made to great extent On infor-
nation Ol,tsiaed from J. C. Flood, between
whom and Dewey friendly relations then
existed These relations continued until the
time nf the fAilnre of the Bank Of Cslifornia
IN August. 1878 II wss then rumored that
Dewey w0uId he nfrrrd seat in the new
directorate 81 the Bank Of California. and
he. with view TO that end. and in confer
mi'y with belief which prevailed to CON
siderable exteni. thai the failure Of the bank
wss largely due 10 the operations Of Finod
Z O'Brien. came vut in dennnciation Of that
Grm. and particularly Of the senior partner.
This creased the Grst breach ia the friendly
relations between Flood aid Dewey. Soon
after the great fire in Virginia occurred.
Dewcy then sOaght Flood for information,
and was told that Il wAs then impossible to
say how soon work % the mine could Ie re-
samcd. and that whether the company would
pay dividend that month was question
for the trustees 10 decide At their NEXT inert
ing. On this information Dewey shorte'i
his dividends At Eve .inllsFs per share, anal,
- The regular ten dollar dividend was paid.
he lost Ss0. 600 IN the Transaction. This has
been she secret of ell Of Dcwey's Subsequent
campaign against the Banana nrm, He
then commenced = systematic course Of de-
traction from the credit Of the firm as man
ayers of the mines. and avowed his intention
of hounsling Flood to his grave to force him
10 refund the money he had been Ss'l,lscd Of
| AT the annual meeting Of Consolidated VIr-
ginia in January of last rear. he took sdvan-
tage Of bad feeling x Deiaied 10y falling
market and endeavored to secure change
in the management He also carried On
| his var through the columns of the press
about month after the annual meeting
Dewey waited upon Judge Lake. counsel 4nf
the Bonanza 6rm. statri his intenlinn NJ
bringing tie suit against the firm hut said,
I have 1000 shares Of Consolidated virg;-
mia that staads me over 80 dollars per share,
! if Flood Will take that oH my hands At that
figure. will be his fnend and stand In with
him and make market II be does not sc-
esps these tsrms will 10 Tor him sll the
tims" Lake rep-rssd the proposal 10 Plosb.
4 whe declined n. Dewey has sisee cnasinuesi
bis oppnsitio1. A gentlemen 10 this city
claims 70 hsss in his pOssessinb letter from
! Dvsey urgisg his EastsSa frissds 20 sell