Eureka daily sentinel. [volume] (Eureka, Nev.) 1871-1887, 1878-05-26
PACIFIC COAST.
CALIFORNIA.
SUIT FOR S35, 634 $50.
SQUIRE DEWEY Is. THE BONANZA FIRM
FULLTEXT:OF THE COMPLAINT.
FULLTEXT::oF THE COMPLAINT.


SAN FRANCISCO, May ..
Last Saturday a complaint was made
in the Thirteenth District Court, by
John Ii. Burke, against the members,
Messrs. Flood q O'Brien, Trustees OF
the Con. Virginia Mining Company,
Nevada Bank, and the mill, tiume and
water companies under the control of
the Bonanza firm. for the recovery OF
$50, 634, 33S. alleged to have been
wrongfuliy diverted 10y the defend
ants from the stockholders of the Con.
Virginia, in the management OF the
mine. 10 day the Bulletin publishes
"A statement from the tirm oil Flood q
O'Brirn. three columns in length. Civ
ing their version OF the caI>eS which
have led TO the bringing OF the SUIT, a.
we'll as statements cfiticIsinI their
management, which have appeared
from Time TO time in print, or have
been circulated on the streets. l. j.
the first reply yer publicly made by
the firm to accusations against them.
The following - a summary: In 1874,
when the big bonanza was being de-
velOped, Squire =. Dewey became a
purchaser OF Con. Virginia stock to the
amount of about 1880 shares. The
purchase was made 10 that extent on
information obtained from j. &. Flood.
between whom and Dewey friendly
relations had been existing. TGeSe
relations existed until the tune of the
failure Of the Bank of California, in
August, 1875. II was then rumored
that Dewey would be offered "A seat in
the new directorate OF the Bank of Cal
i~foruia; and he, with "a view To that
end, and in conformity with the belief
which prevailed to "a considerable ex
tent, that The failure of the bank vas
largely due to the operations OF Flood
Il O'Brien, came out in denunciatiOu
OF that firm, and particularly of the
senior partner. This created the first
breach in the friendly relations be-
tween Flood and Dewey. Soon after
the great fire III Virginia City oc-
Cured. Dewey then sought Mr..
Flood, to obtain Information, u
was told that 1t was then impossible
to say how soon work on the mine
could be resumed, and that whether
the company would pay a dividend
that month was a question for the
trustees to decide at the next meeting.
On this Information Dewey sLorted
his dividend at s. per share, and as
the regular $40 dividend was paid,
he lost 100000 on the transaction
This has been the secret of all Dew
ey's subsequent campaign against the
Bonanza firm. He then commenced a
systematic course of detraction from
the credit of the firm as managers of
the mines. and avowed his intention
Of bounding Flood to his grave, to
force him to refund the money he
had been robbed Of. At the annual
.-a.f.,. &c ~. N,aAlS1afA Na....r..
in January of last year, he took adj
vantage of the bad feeling generated
by the falling market, and endeavored
t secure a change in the MANAGE
meEt; he also carried on his war
through the columns of the press.
About a month after the annual
meeting, Dewey waited upon Judge
Lake, counsel of the Bonanza firm,
suit against the firm, but said: 81
have 1000 shares of Consolidated
Virginia that stand me over $50 per
share; if Flood will take that off my
hands at that figure l will be his
friend, and stand in with him and
make a market; if he does not accept
these terms / will 90 for him all the
time" Lake reported this proposal
to Flood. who declined the proposal.
Dewey has since continued his oppo-
sition. A gentleman in this city
claims to have in his possession let
ters from Dewey, urging his Eastern
friends to sell their stock, and stating
that the mine is worked out, and
can henceforth be at best but a milf
ing proposition, and much more
to the same effect. At the annual
mating oftha Consolidated Nirpini in
January. he again entered his protest
against the proceedings, and did like
wise at the last meeting of the Caliior-
MIA. He also caused the publication of
articles in the Chronicle. signed by his
paid attorney, John Trehane. attacking
the management of the mines; falling
by these means to effect his purpose of
obtaining hush money, he next had an