Vermont watchman and State journal. [volume] (Montpelier, Vt.) 1836-1883, 1883-05-23
The Ely Mines Litigation.

At the recent hearing In this suit before Chan
cellor Rowell at West Randolph 1t appeared
fromithe arguments that the Vermont Copper
Mining Company, owning and operating the min
ing property In Vershire, Corinth and vicinity,
the capital stock of which was largely owned by
Smith Ely Of West Fairlee, had been for nearly
twenty years prosecuting the business Of mining
and smelling copper ore successfully and at a
large profit, until about two years ago when the
veins carrying the ore began to narrow and be-
come pinched and instead Of being q profit there
was loss Of several thousand dollars per month.
In MAY, 1872, the company was encumbered with
floating debt Of about two hundred thousand
dollars, when they began to cast about for some
means whereby they could fund this debt and at
the same time, by change Of management or Of
process in working the mine and smelling the
ore, carry on the business at profit. About
this time Mr. Francis NJ. +. Cain, mining en-
gineer OF New York city, visited the mines and
made propositions to the company which were
accepted and the Vermont Copper Mining Com
pany sold its entire property to Ely Ely-Goddard
and Cain for five hundred thousand dollars and
agreed to take in pay ment that amount OF bonds
to he Issued by new company formed by God
dard and Cain, two hundred thousand dollars to
be preferred bonds with which the debts OF the
old company were to be paid. A few weeks after
the above transfer, the Vermont Copper Company
was organized under the laws OF New York
through the efforts of Goddard and Cain and
others, with Ely-Goddard as president and Cain
as one OF the directors, general agent and man
ager. Ey-GoddaId and Cain transferred the
greater portion OF the real property to this new
company and the bonds were issued, secured by
a trust deed to the Mutual Trust Company OF
New York, and the Vermont Copper Company
went into possession, with Mr.. Cain as general
agent and manager. Some changes were made
under the new management. compressed air
drilling was introduced in the mines, two power
full furnaces were erected and q concentration
mill was erected, or in process Of erection, when
In November the parties interested had become
dissatisfied and Mr. Cain resigned the position OF
general agent and manager and several suits were
brought. Itappears that during his administra-
tion the Vermont Copper Company and the firm
OF Ely-Goddard and Cain had contracted debts
amounting TO upwards of one hundred thousand
dollars. In November Ely-Goddard conveyed
the balance OF the property to the Vermont Cop
per Company, including the mines In VershTe
and the general merchandise business at Ely that
was owned by Ely-Goddard and Cain. In jan
last the Vermont Copper Company conveyed all OF
its property to the old Vermont Copper Company
and operating the business. The Vermont Cop
per Company brought suit against Cain in the
New York court Of common pleas for the CONVEX
sion Of seventy thousand dollars worth OF copper.
!. M. F. Cain brought suit versus New York
Mutual Trust Company, the Vermont Copper
Mining Company the Vermont Copper Company,
Smith Ely and +. Ely-Goddard, asking that a re-
ceiver be appointed and praying for the enjoin-
ing OF the suit in the New York court OF common
pleas, and for an injunction restraining the New
York Mutual Trust Company from issuing two
hundred and fifty thousand dollars worth OF
bonds. Both injunctions were granted, and the
hearing before Judge Rowell was on a motion for
a receiver by Cain and motion for dissolution
OF the aforesaid DjunctioDs by the other parties.
The injunction against the New York Mutual
Trust Company never became operative on ac-
count OF the failure of Cain, to file bond OF
three thousand dollars. The Injunction against
the Vermont Copper Company WAS dissolved, on
the ground that the equitable defense, which
Cain claims to have can be pleaded In bar OF
the suit In the New York court OF common pleas
ander the New York code. The decision as to a
receiver WAS reserved and, as far as we are in
formed. has not yet been given.