New-York tribune., 1878-05-27
THE BIG BONANZA SUIT.

FLOOD 4 O'BRIEN's REPLY TO THE CHARGES MADE
by JOHN II. BURKE ~ HIS COMPLAINT IL THE
TIIETY-FIyE MILLION DOLLARS suIr
SAN FRANCISCO, May GA week ago COM
uarut was filed IN the Twelfth District Court by John
H. Burke against the members OF the firm Of Flood &
O'Brion, trustees OF the Consolidated Virginia Mining
Company the Nevada Bank, aud the mill. lumo and
water companies under the control OF the Bonanza hrm
for the recovery S35 i,33s alleged TO have been
yronguly diverted by the defendants from the stock
holders Of the Consolidated Virginia in their manage
mont of the mine. Yesterday The Bulletin published
statement from the firm OF Flood OBren, three col
uns IN length giving their version OF the causes which
which have led to the bringing OF tho suit
They say that in 1874, when the Big Bonanza was
bepg developed Squire T. Dewey became the purchaser
Of Consolidated Virginia stock to the amount OF about
IjOOO shares The purchase made to great extent
ON information obtained from j. c. Flood between whom
and Dewey friendly relations then existed. soon after
the great fire III Virginia City occurred. Dewey then
sought Flood for information and was told that 1t was
then impossible to say how work In the mine could
be resumed. and whether the company would pay diyi
deud that month question for the trustees to de-
eide at tue lcNt meeting. On this information Dewey
sAortcd his dividends at - per share and the reg
MAR II dividend paid he lost $4,000 on the trans
act on Thi, has been the secret OF all Deweys subse
nm, nj campagns against the BOuaUZa firm. At the an
nual meeting OF the Consolidated Virginia, IN Jan,
nary Of last year, be took advantage OF the bad
generated Nv IdlllG itIkclt dLu
,ecurr "A change IN the management. He also carried
an his war through the columns OF the press.
About month attrr the annual meeting Dewey waited
upou Judge Lake, counsel of the Bonanza firm, and
stared h intention of bringing suit against the firm but
I'D have 600 shares OF Consolidated Virginia,
which stand mc III over $50 per share. II Flood Will
ia G them off my hands at that figure ! viii be his
friend AMI sand In with him and make narketi II De
does not accept these terms i VIII 90 Tor MN
ain the the time. Judge Lake reported the
nropjsM TO Flood, who declined To accept It,
At the annual meeting Of the Consolidated virginia
last January he again entered protest against the pro-
cccdincs AID did likewise the last meeting OF the
california H. also caused the publication Of articles
signed by his paid attorney, John Trenanc, attacking
thr management of tue mines. Failing by these mcaus
10 effect his purpose Of obtaining hush money. he next
h,d au interview with C. UC0nuer, one Of the directors
of the Consolidated Virginia, and handed him a
written proposal TO sell friends OF Flood
1000 shares OF California for $4,000. about
twice its market value, IN consideration OF which
he agreed to renew friendly relations, nothing
10 be about the matter. This proposition was also
declined. On February IL Dewcy's attorney Mr. Ire
hane wrote TO the directors OF the Consolidated virginia
threatening that II Dewey's proposition was not ac
cgpted he should begin proceedings at once The trus
tees declined to consider the matter on the ground that
no evidence was offered.
on May 10 Dewey had 100 shares OF Consolidated Yir
cIuia transferred 10 John H. Burke and making him the
plaintiff the complaint WAS flied as heretofore published