St. Paul daily globe. [volume] (Saint Paul, Minn.) 1884-1896, 1884-04-19
THE COLLAR NINE.
Michael Doran Buys Some Stock and
Brings Suit Against S. S. Eaton
o,,d ~ w Mad


The Collar Mine is, or has been, one OF
those silver bonanzas that every now and
then give promise of great wealth in very
short order. 1t is located at town called
Maiden in Montana, about thirty miles from
the line of the Northern Pacific road. Messrs.
S. S. Eaton, of st. Paul, and Gene W. Mead
Of Omaha, bought the mine and proceeding
to stocki it, disposed of considerable stock
among their st. Paul friends. Among the
purchasers was Hon NJ. Doran, who invest
ed in fifty shares, paying $4,000 therefor
The mine does not seem to have produced
the immediate fortune that was anticipated,
and Mr.. Doran has brought suit against
Messrs Eaton and Mead to recover the mon
ey invested. The salient portions of the
complaint are as follows: i.
''That heretofore to-wit, at st. Paul, MINI.
on and prior to the 18th day of September
1889 said defendants being then and there
officers and trustees of, and said defendant
Mead then being the president of and said
Eaton then being the secretary and treasurer
of certain mining company called the
Collar Mining and Improvement company,
they the said defendants and each Of
lIICll CAN'T W llllS DldllIln anu III
order to, and contriying and intending to
deceive and defraud this plaintiff, and wrong
fully, deceitfully and fraudulently to induce,
persuade and encourage said plaintiff to sub
scribe for and take, purchase and pay for,
from said company, certain, to-wit, fifty
shares of the capital stock of said company,
of the par value of 500 each, and to pay for
said shares 500 each, and 5000 in all, they
fta 11F, a,l,
of them, falsely, fraudulently and
deceitfully and with the interest aforesaid
asserted, stated and represented to said
plaintiff in substance that they, the said de-
PENDANTS, had prior to or at or about the
time of the organization of said company,
purchased mine in Montana of the then
proprietors of said mine, for the sum $50, 900
in cash and 500 shares of the par value at
800 each, and $50, 600 in all of the CAPT
tai stock of said company, and that
they the said defendants had turned said mine
over to said company and let said company
have the same. for the 500 shares of the
capital stock of said company paid to said
former proprietors by said defendants and
500 additional shares Of the capital stock of
said company of the par value of 800 each
Issued to said defendants to reimburse them
III iuC Sdlu s9OU,OOO paul ny
them in cash to said original projectors;
that said company still had
and owned said mine, and that there was in
sight in said mine of and belonging to said
company large body of rich and good pay
ing silver ore, and enough good rich paying
ore to keep the mill then proposed to be built
by said company, running for two years at
net profit above all possible expense in each
of al nf a. no l,a
stock holders of said corporation on the par
value of their entire stock that said corporation
was entirely free from debt and had 1000
shares of the par value of 800, 900 of the
stock still on hand, of which nearly all was
then subscribed for at par, and that the
money to be received by said company from
said stock was ample and sufficient to, and
would buy the mill then proposed to be
erected by said company, and all necessary
machned Band appliances of every kind and
pay all the expense of setting the same up
and of getting said mine into full and COM
plete and paying condition, fully equipped, out
of debt with surplus in the treasury, and in
a condition to at once commence paying div
iGends from the net profits Of the business"
The complaint further alleges that it was
represented that the stock was intrinsically
WOIGn Hucn iuoIe IHdH par, anu IildG tlc cap
ital stock was 100000. Plaintiff confding
in these false statements bought fifty shares
for $4,000.
The complaint declares That Messrs. Eaton
and Mead had not paid or agreed to pay but
so, 900 instead of $50, 900 for the mine in
cash and 500 shares of stock; that there was
no large body of rich ore in sight; that the
company was heavily in debt; that the money
to be received from the 1000 shares was not
enough to equip the mine by at least $780,,
600; that the mine is of no value whatever;
that the plaintiff has wholly lost his $4,000
and he asks judgment against the defendants
on the ground of fraudulent misrepresenta-
ton.
Mr.. Eaton demurs to the complaint on the
ground that the Collar Improvement com
pany is not made a party, and that he is
improperly joined with Mr.. Mead in the
suit