Daily Los Angeles herald., 1878-05-26

1QWCJ A0tRbaOho tAAotShs
These relations continued until the
time of the failure of the Bank of
California, in August, 1875. 1t was
then rumored that Dewey would
be offered seat in the new diIec-
torate of the Bank Of California,
and he, with view to that end
and in conformity with the belief
which prevailed to a considerable
extent, that the failure of the bank
was largely due TO the operations
ofFlood q O'Brien, came out in
denunciation of that firm, and par
ticularly of the senior partner.
This created the first breach in the
friendly relations between Flood
and Dewey. Soon after the great
fire in Virginia occurred. Dewey
then sought Flood for Information
and was told that it was then i'm
possible to say how soon work in
the mine could be resumed and that
whether the company would pay
a dividend that month WAS a ques-
ton for the trustees to decide at
their next meeting. On this infor-
nation Dewey shorted his divi-
dends at SIS share and, As the reg
ular $40 dividend was paid, he lost
$50, 000on the transaction. This has
been the secret of all Dewey's sub
sequent campaign against the bon
ANA firm. He then commenced q
systematic course of detraction
from the credit of the firm as
managers of the mines and avowed
his intention of bounding Flood to
the grave or force him to refund the
money he had been robbed of. At
the annual meeting of Consolida-
ted Virginia in January of last
year, he took advantage of the
bad feeling generated by the
falling market and endeavored to
secure change in the manage
ment. He also carried on his war
through the columns of the press.
About q month after the annual
meeting Dewey waited upon Judge
Lake, counsel of the bonanza firm,
and stated his intention of bring
ing suit against the firm, but said:
81 have 1000 shares of Consolidated
Virginia that stands me over $50
per share. If Flood will take that
off my hands at that figure will
be his friend and stand in with him
and make q market. If he does
not accept these terms, l will go
for him all the time.n Lake re-
ported the proposal to Flood, who
declined it. Dewey has siuce con-
tinued his opposition. A gentle.
man in this city claims to have in
| Il 10 ,,oeeocsiop laffaro FROM, Dauav
urging Eastern friends to sell their
stock and stating that the mine is
worked out and can, hen ceforth, be
at best but a milling proposition,
and much more to the same effect.
At the annual meeting of Console
dated Virginia last January he
again entered protest against the
proceedings, and did likewise at
the last meeting of California. He
also caused the publication of arti-
Giles in the Chronicle, signed by his
paid attorney, John rrebane, at
lacking the management of the
mines. Failing by these means to
effect his purpose of obtaining
"hushn money, he next had an in
terview with G. O'Connor, one OF
the directors of Consolidated Vir-
ginia and handed him q written
proposal to sell to the
friends of Flood one thousand
shares of California for $50, 600,
about twice the market value, in
consideration of which he agreed to
resume friendly relations and Moth
ing would be said about the matter.
This proposition, also, was declined.
On February 18th Dewey's attor-
ney, Trebane, wrote to the DireC-
tors of Consolidated Virginia,
threatening, if Dewey's PROPOSE
ton was not accepted, that he
should commence proceedings. The
Trustees declined consideration of
the proposition on the ground that
no evidence was offered, as Trebane
was stakeholder or represe nted
one. On February 18th Trebane,
in company with S. w. Halliday,
wrote to the Trustees reiterating
the charges against the manage
ment, and demanding that the
Trustees bring suit against the
members of the firm of Flood &
O'BrIen for the recovery of the al
legged interpretation of mon-
eys, profits and property of the
company. The Trustees replied,
saying they would thoroughly in
vestigate the charges and asking
the attorneys aud Dewey to be
present at the investigation and
bring their evidence. This was de-
clined. Dewey, in another letter,
stating that, unless the Trustees
c)mmenced action on or before
March 1st, he would himself COM
mence suit on behalf of the stock
holders. Some two months ago
Dewey prepared a complaint,
which was verified before II Notary,
but was not filed in Court, and
handed it to Judge Heydenfeldt, of
counsel for the Bonanza firm, with
request to show it to his clients.
No notice was taken of it and on
the 18th inst. Dewey had one hun
dred shares of Consolidated Vir-
ginia transferred to John H.
Burke and, substituting the latter
as plaintiff, the complaint was
filed as heretofore published.
LIZ obONO ID IhatiC IL
view of the doubt entertained as to
whether the suit will ever be
brought to trial and to afford an
opportunity for disproving the alle-
cations in the complaint. Mean
time, Dewey has got up pamphlet
attacking the Bonanza firm, to be
mailed to Eastern stockholders to
create distrust and i'll feeling.
San BernarGino Republican Nom.
SAN BERNARDINo, May 25.-The
Republican Convention met to-
day and nominated S. E. A. Pal
mer as their delegate for the Con-
stitutional Convention for this
county and III. G. Rolfe for The
Senatorial District of San Bernar-