Gold Hill daily news. [volume] (Gold Hill, N.T. [Nev.]) 1863-1882, 1881-03-31
WESTERN DISPATCHES
IMPORTANT MINING DECISION.
Burke vs.. the Bonanza Flrm-Heavy
Interests Involved-Burke Scores
y Winning for the Present.

DAN cRANClsCo, nlurcn ol'- ~ bsot'
day morning Judge Sullivan. Of the su.
psrior Court. decided n Of the numsr-
ous suits instituted by Burke against
the bonanza Arm. The suit decided ID
that Of Burke vs.. Flood ct al. The
complaint charged fraudulent conversion
Of only q few feet Of mining ground,
but the principles involved are very i'm.
portant. The Judge held that the rsso-
lutions Of ratification adopted at the
Consolidated Virginia s%tockholders'
meeting were Intellectual because not
adopted by the unanimous consent Of
the whole body Of stockholders. All
the transactions except o were held to
be such that the stockholders might
have had notice from the books ct any
time OF their character, or at least sui.
fcispt notice to put them upon inquiry.
Therefore the statute OF limitations was
held 10 have run against all except the
transaction In which Heydenfslt pur.
chased twelve and o halt feet OF ground
from George W. Kinney. The interest
OF the Flood party did not appear to
have been disclosed to the body OF the
stockhsldsrs, and the books conveyed no
notice to put stockholders upon inquiry;
10 that one transaction was held to be
exempt from tbs operation Of the statute
of limitations. The defendants, there
fore, were required to account for the
profits OF that transaction. "This 20.
counting must be-" said the Judge. ito
the body OF the stockholders constituting
the corporation. Holders OF stock ct this
date will be allowed sixty days after pub.
lie notice given by the master appointed
by the Court within which to elect 10
take the benefit Of the decree herein and
present the evidences Of ownership"
The Court will provide In its decree
that all parties failing to come In within
that time shall be foreolosed OF oil claim
against the defendants. or either Of them,
arising out Of the transaction considered
herein. On payment Of the several
amounts that may be determined to be
due to the parties eleoting to take the
benefit Of the decree herein, the defend.
ants will be released from oil claim
against them arising on the part OF said
corporation or its stockholders.
The 1927 shares Of stock issued In
this transaction became equivalent (by
reason Of several increases In the capital
stock OF the defendant corporation, and
dividends OF California stock issued to
the stockholders Of defendant corpora
tion) to 6125 shares OF stock OF the cor.
poration defendant. and 1918 shares Of
the California Mining Company. The
defendants, other than the corporation,
are to account for said shares Of stock,
or their value at this date. and for oil
dividends paid on said shares Of stock.
as shown by evidence In the trial, to-
Rsthsr with interest on such dividenda
from tho dates OF payment. Defendants
arc 70 be credited with $500 actually
psid for the ground, with interest thereon
from April ~. 1872.
II IL estimated that tho amount oil
money which Flood OF al. will be called
upon to pay over. should they conclude
mot 10 appeal. will be between $500, 600
and $500, 900. The decision will have
An important bearing on other suits now
pending. involving several millions Of
dollars. The news OF the decision had
no effect on the price Of stocks.
The decision Of Judge Sullivan has
been the general toploof conversation On
the street. The plaintiff and those inter
sstsd on his side Of the question In this
and other suits express great satisfao-
ton, and bold that although the re-
sovery Of the larger portion OF the
amount at issue In this suit-somsthine
over $40, 000. 000-is held BY the do
cision to bs barred BY the statute oy
limitations. the principle for which they
commended u fully established. Thee