The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1878-05-26
THE GREAT BONANZA SUIT.
REPLY OF FLOOD o'BRIEN TO THE CHARGES
MADE AGAINST THEM.

REPLY OF FLOOD 4 o'BRIEN TO THE CHARGES
MADE AGAINST THEM.
SAN FRANCISCO. May rs, 1878.
Last Saturday complaint was 1lod in the Twelfth
District Court by John II. Burke against the mem
bcrs OF tho nrm Of Flood O'Bren. trustees Of tho
Consolidated Virginia Mining Company. tho
Nevada Bank, and the MILL nume and
water companies under the control OF tho
bonauza lrm Tor tho recovery Of s35 634. 1888. al
legged TO have wronguly diverted by tho defend
ants fron the stockholders OF tho Consoli-
dated Virginia In Their management Of tho
mine. To-day the Bulletin publishes a statement
from the lrm OF Flood 4 O'Brieu, three
columns In length giving their version Of the causes
which have led TO the bringing Of tho SUIT we'll
statements criticising their management which have
appeared from time to time in print have been
culaicd oct. II Is the first reply pub
liciy made by tho firm 10 tho accusations against
them. Tho following Is summary
THE FIRMS STORY.
In 1874 when the Big Bonanzi being deveI-
epsd, Squire r. Dewey became tho purchaser OF Con-
soIidated Virginia stock TO the amount OF
ABOUT fifteen thousand shares The purchase
taincd from J. Z. Flood, between whom and
Dewey friendly relations then existed. Those rea-
tons contnued until the time OF the failure OF tho
Bank OF California IN August, 1875. II was then
mered that Dewey would be offered seat IN tho new
Ss w.n ss ha9k % ens and ana
conformity with a bslici which prevailed
was largely duo to The operations OF .ood UBrsn,
came out 10 donuucixton oil that firm aud partcu-
larly u tho senior partner THIS created tho nrst
brcuch In the friendly relations between Flood ana
Dewey Soon alter the great tire Ia Virginia Guy
occurred. Dewey then sought Flood for inormation,
and was told that u was then impossible TO say how
soon work In the mino could be resumed. and
whether the company would pay a dividend
tecs to decide at tho next meeting. On
this information Dewey shorscd MS dividends at
paid. he lost $4,000 on INC lransaet,on This has
been tho secret OF al Dewey's subse-
then commenced a systematic course or dc.
traction from the credit OF the Arm, tho
managers Of The mines aud avowed his intention Of
bounding Flood to the grave to force him toreiund
| the money no had been robbed Of At tue annual
meeting Of the Consolidated v'rgIo'a in January OF
Grated by falling market aud cndeavorcc 10 secure
change IN the management lie also carried on his
| war through the columns oil the press.
CHARGES AGAINST DEwKY.
About a month after the annual meeting Dewey
ana stated his intention Of bringing SUIT against tho
lrm but SAID Il 600 shares OF Consolidated
| Flood VIII take them on my hands ut that nguro
will be his friend, and stand In with him aud mako
Tor ho ali tho time. Judge Lake reported the pro.
posai Flood who declined 10 accept IT, Dewey has
s,oco Ls 0pposiou gentleman n this
urging Eastern friends 10 sell their stock, and stating
that the nine Is worked OUT and can hcncoorh DO NJ
best but milling proposition, and much more
Og OF thu conso I, Virginia ~" uAI las. jan
psos and ad likewise a. the last meeting Of
tho California. lie also caused tho publication OF
tlcss IN tho Cronicie, signed ny his paid attorney
John Trshanc, attackiEg inc management OF the
Failing by these mcans4o elect his purpose OF
Obtaining hush money he next bad an interview with
e. o. Conner OF the Directors Of the Consolidated
Virginia handed him written proposal to soil 10
trcnos oil Flood 900 shares oil California tor $52 800
Icl,nu s.v,ro 10 u nj
which ne agreed 10 friendly relations, nothing
10 be said about the matter. his proportion was
! also declined On February II Dewcy's attorney,
Mr. Trehanc, wrote 20 the directors Of the Consoii
dated Virginia threatening that II Deweys PROPOSE
ton was not accepted he should commence proceed
ORIGIN or TIN suIr
The trustees dccine cd TO consider the matter, the
! ground that no evidence was offered. Mr. rretianc
| AIRY 49, in company with = w.Holaday, wrote to tho
trustees reitcratiLg the characs against tho man
assnons, ana demanding ihIs tho trustees
/ tho firm OF Flood O'Brien for tho recovery
| OF alleged misappI oprlated moneys, profits aud
properly Of tho company. The trustees replied that
tney would thoroughly Investigate tho charges. and
askcd tue At orncys and Dewey 70 be present at tho
Declined by Dewey in another letter. stating
| that unless the trustees commenced mn &C
ton on before March !. he would hiwsoi
commence suit on behalf OF the stockholders. Some
two months ago Dewey prepared q complaint which
verified by notary pubic. but M" hcd in Court,
| the Bonauzt firm. with quest 10 show Il 10 his
clients No notice takeu VI and on tho 10th inst.
ferrou to John II. Burke, and substituting the latter
The plaintiff the complaint was flied rs heretofore
| published
entertained whether tho SUIT viii DO brought
10 trial 10 afford opportunity OF disprovtng tho
Allegations In .ns compliant. Asani,me Dewey has
BIO mailed 10 Eastern stockholders 70 create distrust
| and III feeling