Eureka daily sentinel. [volume] (Eureka, Nev.) 1871-1887, 1878-08-29
THE I'VE RrCHMOxDs.
Relative Legal Rights of the Arneri-
can and English Onganfxatfons.

Shareholders will remember that there
are two Richmond Companies in existence,
one known as the English company, the
other as the American, or Richmond Min
ing Company Of Nevada. The latter COM
pany was incorporated in the beginning Of
1873, during the time that the first lawsuit
between the Eureka Consolidated and Rich
mond Consolidated was going on. Pre-
vious to the creation of this American
company, the Richmond property md
affairs were managed by the London COM
pany through their manager and agent in
Eureka. Upon the creation of that COM
pany, all the property and management
were assigned to it, and the London board
ceased to have any control of the manage
mcnt OF affairs in Eureka. This state Of
things continued until February %, 1876,
when the property was re-assigned to the
London Directors, to enable them to exc
cute a mortgage deed to secure the deben-
ture holders this gave the London board
again possession of the property and the
control OF the management at Eureka.
which they held until the ommencement Of
the late lawsuit, when they re-assigned the
entire property, and the control thereof, to
the American company, who are still in
possession, and who control the manage
mcnt without the interference Of the Lon
| don Directors.
Mr.. Richard was not appointed by the
London board, but by the President Of the
American mpan as will be seen further
on. In order that shareholders may clearly
understand the position Of their affairs
and property, / give the following extracts
from the evidence given, under oath, by
Messrs. Probcrt, Wren and Corrigan in
the beginning Of February, 1877, when the
first proceedings in the late lawsuit arose,
and which was heard before Judge Cole at
Eureka IL. Evidence Of the Rev. Edward
Probert, Managing Director.--'.I reside in
Eureka have resided here for the past
three years and a half. A portion Of the
time | was looking after my own interests
as a proprietor, and the balance Of the time
as Trustee of the Richmond Mining Com
pany Of Nevada. The Richmond CONSOLE
dated Mining Company (Limitcd) is in
corporated in England. / am a Director
Of that company in England as such Di-
rector l have never transacted any business
for it in Eureka. i never caused to be fur
nished vouchers of the expenditure Of the
workings at Eureka to the Richmond Con-
solidated Mining Company Limitcd). l
do not know that the money or the prop
erty OF the Richmond Consolidated Mining
Company Limited) pays the expenses of
the workings at Eureka. The Richmond
Consolidated Mining Company (Limited)
| does not pay or defray the expenses in
| CURED at the Eureka workings these ex-
penses are not deducted from the assets or
property of the Richmond Consolidated
Mining Company (Limited). l do not
think that the Nevada corpoi alton was
created for the purpose Of working the
Richmond mine for the English corpora
ton. / do not allow that the English com
r.a.- ~ ur. tf.a NJ IA 10 aaefstted tho NJ a
vada company work without the interferenec
of the London company. l say that / do
not know what property we have got here
the American company own all the prop
erty and work ii. / pay particular at.en-
ton to the property, works. and ground in
Eureka as a subordinate every act OF mine
must be submitted by me to the President.
Some Of the proceeds are divided with the
English company
This clearly shows that the directors
having surrendered all the property and
| the control thereof to the Nevada Company
the trustees Of chat company can act en-
tirely Independently Of the London board
if they see fit to do so. The board have
/ thus really no power to force any 0. the
recommendations contained in the COM
mittee's report on the management at
| Eureka, and ii is, therefore, now no mat
ter of surprise that Mr.. Hopkins felt him
| self in an awkward dilemma about signing
that report. l think it is q very great
pity that he did not en1ighten the other
| members of the committee on this most
important matter. On looking through
the past reports Of the directors to the
| shareholders, and also through the pro-
ceedings of the various meetings Of share
holders held since the creation Of the
| Nevada Company, the following is all that
/ can find on the subject communicated to
| the shareholders. The first information of
its existence appears to have been given in
the report of the directors dated Nov. 10,
| 1878, and at the general meeting held on
the Is idem to receive this report, the
| chairman stated as follows: sDuring the
| progress Of the lawsuit, counsel for the
better protection of the company's inter-
| ests said it was imperatiyely necessary to
incorporate the company in the United
States OF America, in conformity with the
| laws Of the State Of Nevada. This was
| accordingly done in the nance of the Rich
mond Mining Company of Nevada. By
the laws OF the States no alien can hold a
| patent under the States. The counsel we
| had engaged, thought that to strengthen
| our position in this lawsuit it was impera-
lively necessary that we should be incor-
| poratcd there. The facts Of the case are
| these: In order to obtain the patent we
| had been under the necessity Of asking a
native OF the States to hold the property in
his name. Mr.. King stood in that posi-
| ton. The property was assigned to him.
| and he again assigned it to the Richmond
Incorporated Company, and we hold all
the stock in it with. the exception of five
| shares, which were necessary to qualify
those who acted for us, and who were vir-
tually our agents in the matter. We con-
| suited our friend Mr.. Valance, who said
we were quite safe in doing So"
This is all the information given to the
shareholders that l have been able to come
across. Shareholders were not told how
many shares there were in the Nevada
Company; copies of the bylaws of that
company were not furnished to the English
shareholders, and the superior powers and
rights Of that company, as sworn to by
Messrs. Probert and Wren in February,
1877, were never communicated.
There are III 900 shares in the Nevada
company. Four certificates Of these were
issucd-oue for 10, 995 shares, to the di-
rectors of the English company as trustees
for their shareholders, and three to the
three trustees of the Nevada company. Mr..
Probert holds one Of these three certif-
Gates, as also a W OF attorney from the
directors Of the English company for the
10, 995 shares belonging to that company,
and Mr. Wren and Mr.. Thomas Price, the
other two trustees, hold the remaining two
certificates; SO that practically the entire
control at the present moment rests with
tho president and trustees of the Nevada
company.
Mr.. Corrigan resigned in February, 1876,
in order that Mr.. Wren, who was residing
in Eureka, might be elected president, and
thus expedite the transfer deed of the
property to the English company, for the
purpose Of raising money by ~debenture;
this deed was executed on February 20,