The sun. [volume] (New York [N.Y.]) 1833-1916, 1878-05-26
A SUIT FOR 35,6Sf,SSs.
The History OF ohm ~. Burke's Claim Against
the Great Bonsuza Firm.

the Great Bonnusn Firm.
SAN FRANCISCO, May 25.-Last Saturday
complaint was filed in tho Twelfth Dstric
Court by John II. Burke against the members
OF the firm OF Flood h Oljrlen. trustees OF tho
Consolidated Virginia Mining Company, tho
Nevada Bank. and the mill. nume and water
companies under the control Of the Bonanza
firm. for the recovery OF t35 ga 33S. alleged TO
have been wrongfully diverted by the defendants
from the stockholders OF the Consolidated Vir-
ginia in their management OF the mine. To-
day tho Bulletin publishes a statement from tho
firm Of Flood h OBrien. three columns In
length. giving their version Of the causes which
have led to tho bringing OF the suit. as well as
statements criticslng their management. which
have appeared from time to time in print. or
have been circulated on the street 1t lie the
first reply ever publicly made by the firm to the
accusations against them. The following Is q
summary:
In 1874. when the Big Bonanza was being de-
veloped Squire p. Dewey became the purchaser
OF Consolidated Virginia stock to tho amount Of
about Is 900 shares. The purchase was made
to a great extent on information obtained from
J. G. Flood, between whom and Dewey friendly
relations then existed These relations CON
tinued until the time Of the failure OF the Bank
OF California; in August 1875. II was then ru-
the new directorate Of the Bank of California.
and he with view to that end and in con
fQrmity with belief which prevailed to con
bank was largely duo TO the operations
Of Flood 4 o Brien, came out in denunciat on
| OF that firm, and particularly OF the senior
partner. This created the first breach in the
| friendly relations between Flood and Dewey.
! Soon after the greut fire In Virginia City. Dewey
sought Flood for information. and was told
! that 1t was then impossible to say how soon
| work in the minc could pc resumed, ana
| whether the company would pay dividend
! that month was question for the trustees TO
decide at tho next meeting. On this iniorma-
ton Dewey shorted his dividends at - per
share and as the regular 80 dividend was
paid. he lost 100000 10y the transaction. This
campaign against the Bonanza firm. He then
| began u Systematic course OF deraNlon from
the credit 9f the firm, as the managers OF the
! Mines and avowrd his intention OF bounding
money he had been robbed of; At the annual
airy Of last year he took advantage Of the bad
feeling generated by falling market. and en-
dcuvored to secure "a change in the manage
ment. He also carried ON his war through the
columns OF the press
About a month aiter the annual meeting.
Dewey waited upon Judge Lake counsel OF the
Bonanza firm. and stated his intention ofbring-
ing suit against the firm, but said' " | have
1000 shares of Consolidated virginia. viii n
stands me in over So per share, II Flood viii
take them of my hands nj that figure. ! will hc
his friend. and stand in with him and nuke Q
market II he does not accept these .t"rms. |
ported this prop sal 10 Flood who declined to
accept IT, Dewey has since continued his oppo-
sition. A gentleman in this city claims to
have Il his posseSsion l,iters , ron D,rw,y
ing that the mine is worked out and can hence:
forth be at best but IL milling proposition. and
ing ofthe Consolidated Virginia last january he
again entered protest against the proceedings
fornia.. Tie, also caused the publication
Of articles in the clronicle sisnet ny his
psd a '9sn Se pes"nf fams KY 'ss
means to effect his purpose Of ohta ming hush
money. he next had an interyc.w with c. C.0'S!n;;
Virginia. and handed him written proposal
TO sell TO friends Of Flood one thousand shares
value. in consideration OF which he agreed to
renew friendly relations; this proposition was
On Feb. p Dcwcy's attorney. Mr.. .Trchqnc
wrote t. the directors OF the Consolidnied Nir-
gni@ threaten9f tn Gon II pew"gs sN rr3n-9n
the matter. on the ground that no cydcq q was
offered. Mr. Trehane was q stockholier, or
represented ono. and on Feb, Is, in company
with 5. W. Holiday, wrote 10 the trustees, re-
; ment. and demanding that the trustees
should bring spt 1Ians' thr ,nemnrr7 ,or ~.
recovery Of alleged misappropriaied moneys
profits ant pr9peri{ OF me c,3mrany Ih'
vestgnte the charges. and asked the al'nrn' "
and Dewey t. lr pr sent at the invest CATION
and bring evidence. This was declined ~
Dewey IN another l"li'r stating that, UNI th'
trustees began an acton on or before March ]
, no would himself institute suit on brhal
Of tho stockhol!ers. Some two months
ago Dewey prepared n comp. .aint which wa
} verified by notary public, hut, not nled u
court and handed II To Judge Heydenfclit %
counsel Tor tho Bopauza firm. with request &
! show il To his clients. No notice, was taken 40
H. and on the 10th inst; Dewey had one hundrect
shares of Consolidated Virginia transferred q
John II. Bu-Se. and substituting the latter IA
the plnintiff. the complaint was filed Ms hereto
; fore published
Tho above statement is made in view Of III,
doubt entertained MS 10 whether the SUIT vii
ever be- brought 20 Il trial to AFFORD an opp0rtu
nifty Of disproving tho allegations in the com
plant Meantime Dewey has gotten ~ pam
phlet attacking tue Bonanza iirn. to be m,.lle'
! and i'll feeling.