The Arizona sentinel., 1880-06-19
BaRRfYS B0NANzA.
INSIDE HISTORY OF THE SILVER KING MINE MAN.
 AGEMENT.
All the Dividends Pad from the
 Proceeds of a Lease fo the Primer
 pal Owners Arixena Eeokkeeper
tFrom ths 6. F. Chronicle. 1

Suit has been commenced in the Superior Court by William H. BoOthe, one Of the Directors Of the Silver King Mining Com pany, to recover the amount due on 10000 shares of the capital stock, on which dividends were declared in 1S77an 1878. amount ing to S4 50 per share. Tn gre are some interesting facts connected with the history of this company, which are a sealed book to most of the stockholders. The Silver King Mining Company's location, covering 1900 feet in length and 600 in width, in the Pinal moun- tains, Pioneer Mining District, about 35 miles from Florence, Arizona, was made in March, 1875, by Charles G. Mason, Ben iamin W. Reagan, William H. Long and Isaac Copeland. Cope iand sold out his interest to Ma son, and Long to Reagan, and subsequently, James M. Barney purchased Mason.s half of the property. The work of develop ment was not commenced in earn est until July, 1876. The mine was believed to be rich. It has all along paid the expense of it's working, it is said, and a large surplus, the cost of the location papers, recording. etc., being paid from silver picked up from the outcroppings. In May, 1877, the Silver King Mining Company was incorporated. with a capital stock of S10,000, 1000, divided into 100000 shares, Barney and Req gan deeding the property to the corporation, the formers half, however, being subject to a mort. gage of $50,000, recorded in Flor. ence, to Mason, from whom he purchased.
 THE FIRST DIRECTORY
 Consisted of Barney. Reagan, B. A. Barney, George l.. Woods and William H. Boothe, the three last named having been given ten shares each by the other two to qualify them for the Director ship. James M. Barney was chosen Treasurer and General Manager of the company's funds and business. He made a bargain with Reagan to purchase the lat ter's stock. so that he really own ed the whole property, with the exception of the thirty shares in the hands of the other three .Di- rectors. The terms of the pur- chase were easy, the Reagan stock being placed in the hands of trustee, to be delivered piece meal as Barney could take up his notes, with the profits of work ing the mines or otherwise. About the first act of the Board of Directors after organization and in the same month of incor. poratiOn was to execute a lease of the mines for two years and a half from May, 1877, to December 3l. 1879. This they did on the strength of letter from Barney to them stating that he had as business manager made a lease of the property for that term to a responsible person in Arizona. for S457,0G0. Who the responsible pa a~:y was Barney did not state, aod the Board did not inquire. He did not show them the lease. CT copy Of #, and they did not ask tc See it. They simply took his word for it that he had leased the mine for that sum, and con- firmed the act in the name of the company, the only entry of the transaction on the records of the company. being a minute setting forth that lease had been made on these terms. They probably thought as
 BARNEY WAS PRACTICALLY THE
 COMPANY,
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