, 1881-01-02
THE DYER MINE.
The Attorney General Believes It Has
Forfeited Its Charter.

Friday the Acknowledgement flied petit
tfon in the Criminal Court asking leave to file an
| information in the nature OF quo Warranto
against the Dyer Mining Company. 10 the afii"
davits annexed 10 the petition it is, among other
things, alleged that in February, 1873, tho nrm OF
Reed, Mcdonald g. Co., OF Chicago, made an
agreement with parties in Colorado to purchase
! the Dyer Mine for $50, ,000. Then Reed, McDonald
s. Co. called the mine worth 100000, divided 1t
into shares of 81 600 each, took contracts from
parties subscribing for shares to pay one-third
OF the subscriptions in cash by the 1st OF May,
1879 They obtained contracts Of this kind for
six -tenth5 Of the mine, nud realized tnefeifon
served for themselves: The $4,000 was Pald to
the parties from whom the mine mad oeon
bought, and the rest Of. the purchase money
By them fSr $4,000. The parties then, to place
the mine before the public, organized corpora-
tion under the laws of Illinois, called the Dyer
Mining Company, with
A CAPITAL STOCK OF S1.000000.
This stock was delivered to the holders y Of IT, the
contracts OF sale in the proportion OF $l0,oQ OF
stock 10 each share Of 1890, 50 that the parties
who had bought In with Heed, Mcdonald & CO.
paid in cash, and Reed. Mcdonald & Co. took
Of e ne was aer nGs 70
pany for the stock. and the latter put upon the
market full paid non assessable stook IS: go the
Company owned the mine for which $so'ooo had 6s
been pnid, subject to q mortgage for $40O00,
which The Company assumed and agreed to pay,
and for this $4,000 mine the Company had
sented to the public that its stock paid up
in full, when not dollar had been paid upon 1t
The af1idavits further allege that the parties
managing the concern then began to put tha
stock upon the market and sold tho same In
large quantities to persons who we're ignorant
all of which WIS an abuse OF the privileges and
franchises Of the corporation. In September, 1873,
the corporation had no money and no property
except the equity in the mine, the mortgage was
coming due. and payments had to he made, 50 a
call was made upon tho stockholders for loan
hour. About this time Reed, Mcdonald & Co.
and the persons who had been Instrumental in
getting up the scheme got control Of the mort
once. ....
The outside persons to whom stock had been
sold declining to COME down With the money to
pay up the mortgage, meeting WIS called to
REDUCE THE CAPITAL STOCK
Such meeting was held, and Reed, Mcdonald &
Co. and others in their interest, voted to reduce
and did reduce the stock to Sioo, o,oW,-a silent
Now having reduced the stock they called upon
the holders for money TO pay the mortgage, but
the stockholders did not respond: - So the mort o
Now another meeting was called to increase the:
crease to $l50,0O0, and the holders Of the mort
gage took the $5000v of new stock. -.
THE STATE WANTS TO KNOW
whether its citizens can be treated In this way
a man has purchased $1,000 Of tha stock fully
paid up Of % 1his mag9@SSs 1t so :: f9Eposa}} and
erty is wiped out Ut existence It wants to know
whether ono of its corporate bodies can. upon
incorrect Representations as to the character. Of
its capital place that stock On the market, sell
it at par, and then cut OF nine-tenths OF it. or
In other words, whether corporation shall be
It is also alleged in the affidavit thaC-the Dyer
Mining Company was organized In Illinois to do
business exclusively in Colorado, but 1t has no
State, and the inference is that such corpora
ton is mot authorized by the laws Of this State,
and
ITS ORGANIZATION: IS ILLEGAL AND VOID. e
Several circulars written in the office ot the
Company and sent out to its stockholders are at
methods BY which this Kind Of a corporation
= Mr. George re K. Clarke is the President of this
concern; Mr.. B. F. Clarke is the Secretary; Mr.
+. V. Reed. 7: 6. Warden, Samuel PHO. Fl; +
Penney, and G. 4. Knight are the Managing Di- |
rect0rs. =.
There is also attached to the petition an afl-
IN e
81. .00o, o,oool. be was in the office: Of the |
Rye9 iaioE & wen enona he . 1e wes
chase stock in the Company: BENJAMIN F.
Clarke. Georee R. Clarke, and H. = Reed were |
present: Jncobs represented, to him that the /
stock OF the Company was full-paid and non-as- |
sessable, that the Company owed no debts md !
that 1t was safe and first-class investment;
that the Clarkes and Reed indorsed the repre- !
sentauons made by Jacobs, and that, relying
upon these statements as true, deponent. for !
himself and friend H. D. McCulloch, Invested !
81, 600 In cash in the stock. Mr- Clarke is Of the
opinion now that the stock Is unstable and is
permanent Investment
It is understood that the object Of the present
petition is to test the legality Of Il CORPORATION
In Illinois to do business exclusively
In another State. and If such organization shall
be held to be valid, then whether it bus not for
fnftaC hF al
duct. |
The Court eutered IN erder to show cause On
The 18th of January why the prayer Of the Pc
hhoner should not be granted.