Burlington weekly free press. [volume] (Burlington, Vt.) 1866-1928, 1883-05-25
THE ELY MINES LITIGATION.
some Heavy Lawsuits and n General
Tanylc.


From the Montpelier watchman.l
AT the recent hearing in this suit before
Chancellor Rowcll at West Randolph it ap.
pearcd from the arguments that the Vernon
Copper Mining company, owning and oper.
atins the mining property in Eershirc, Cor.
nih and vicinity the capital stock of which
was largely owned by Smith Ely of West
FairlCc, had been for nearly twenty wears
prosecuting the business of mining and
smelling copper ore successfully and at u
large profit, until lately, when the veins car
| rylng the ore began to narrow and become
pnched and instead of being a profit there
was loss Of several thousand dollars per
month. In May, 1872, the company was
| encountered with a floating debt of about
| two hundred thousand dollars, when they be-
gan to cast about for somcs means whereby
they could fund this debt. and at the same
time, by change of management or of pro-
cess in working the mine and smelling the
ore, carry on the business at a profit.
About this times Mr.. Francis NJ. +. Cain.
a mining engineer OF New York city, visited
the mines and made propositions to the COM
pany which were acce pied, and the Vermont
Copper Mining company SO Id its entire prop
cry TO Ely Ely-Goddard and Cain for five
hundred thousand dollars and agreed to take
in payment that amount of bonds to be issued
bya new company formed by Goddard and
Cain, two hundred thousand dollars to be pre-
ferred 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 and manager Ey-God.
dard and CAIN transferred the greater pOr
ton Of the real property TO this new company
aud the bonds were issued, secured by a
trust deed to the Mutual Trust company of
New York, and the Vermont Copper COM
pany went into possession, with Mr.. Cain
as general agent and manager. Some
charges were made under the new manage
menl compressed air drilling was introduced
in the mines, two powerful furnaces were
erected and Il concentration mill was erected,
or in process of erection, when in November
the parties interested had become dissatisfied
and Mr.. Cazin resigned the position of gen
eral agent and manager aud several suits
were brought
1t appears that during his administration
the Vermont Copper company aud the firm
of Ely-Goddard and Cain had contracted
debts amounting to upwards of $780, 900 In
November Ely Goddard conveyed the bal
ancc of the property to the Vermont Cop
per company, including the mines in Yer
shire aud the general merchandise business
at Ely that was owned by Ey-Goddard and
Cain In January last the Vermont Cop
per company conveyed all of its prop
crty to the old Vermont Copper
company, which last named com
Iany is now in possession and operating
the business. The Vermont Copper com
pany brought suit against Cain in the
New York court of common pleas for the
conversion of seventy thousand dollars worth
of copper. +. NJ. F. Cain brought suit
versus New York Mutual Trust company,
the Vermont Copper Mining company, the
Vermont Copper company, Smith Ely and
Il. Ely-Goddard, asking that a receiver be
appointed and praying for the enjoining 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 aud fifty thousand dollars worth
of bonds. Both ipjunctions were granted,
and the hearing before Judge Rowell was on
a motion for "a receiver by Cain and mo-
ton for dissolution of the aforesaid injunc.
lions by the other parties. The injunction
against the New York Mutual Trust com
pany never became operative on account 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 defence, which
Cain claims to have, eau be pleaded in
bar of the suit in the New York court OF
common pleas under the New York code.
The decision as to receiver was reserved,