Eureka daily sentinel. [volume] (Eureka, Nev.) 1871-1887, 1885-06-13
A MINING DEAL.
Judge Tuley Extricates President
Billings from the Grasp of sharp

Judge Tuley E~xtRfcates President
Billings from the Grasp of sharp
ers.
Chicago Times, June 8.
In an opinion covering many pages OF
legal cap, and consuming over an hour in
delivery, Judge Tuley, yesterday. decided
the mining case of A. M. Billings, Presi-
dent OF the Home National Bank, against
William Whalen, q shrewd and inventive
Spectator, who, in 1881, succeeded in per-
suading Mr.. Billings to advance him some
$4,000, in different amounts, with which
to develop gold and silver mines in the An
telope District Of Nevada. Whalen secured
the loans by deeds of conveyance of the
several mines to Billings-at least the lat
ter claimed that they were given as securi-
ties for the money advanced. Whalen,
however, commended that they were convey
ances absolute, and that there was no con-
dition affixed. A corporation with $5,0OO,-
600 capital was organized, Of which Billings
was President, to develop the mines, but
1t progressed no further than its forma-
ton, when Billings discovered that the
0aASo SSh'0yOo " Aiu Wdb NhluOACbps L1O
then drew out of the deal, minus $4,000,
and filed a bill against Whalen to nave the
deeds OF conveyance declared to be security
for money loaned, for q decree for the
Sl3, 900 loaned Whalen, and to restrain the
prosecution by Whalen of a suit for $780,
900.
Judge Tuley decided that Mr.. Billings
was entitled to his money, and gave o
decree against Whalen for Sill 500. Bill
lings claimed SIS, 900. The Court said
there was some doubt about the 81 500,
but he could as we'll give q decree for the
whole amount as part Of IL II he did not
think that there was as much question
about collecting $11 500 as 5000. He
said there was no doubt from the evidence
that Billings had been victimized. He
loaned the money in an off-hand way, and
was not particularly anxious to ascertain
whether the mines, on which he advanced
it, we're valuable or not. After several
promises to accompany Whalen, he finally
went to Nevada, and calling to his aid an
English mining expert, made a careful
examination of the mines and found no
ore there at all. There could be no ques-
ton but that Whalen had either grossly
misrepresented the facts or had been car
ried away with the idea of immense gold
| and silver deposits in the land he con-
| trolled. The Judge said that he might
| possibly have been himself mistaken, but
/ he considered the theory that he misrepre-
sented the facts better borne out by the evil
dence. He could understand how Billings
had been persuaded to invest. The Court
himself, while listening to Whalen's testi-
mony, had felt as If he might have been
| induced to take stock, because Whalen,
though an ignorant man in some respects,
was a most glowing word-painter when it
came to a question OF mines. The evidence
was very strong, however, as to the false
representations, and it was q question
whether it was not q wilder scheme than
one exposed in England, where q man
protested to have a secret plan for extract
ing oil from radishes. The testimony be-
irg so conclusive, therefore, the judge
would enter a decree that S11 500 of the
money loaned by Billings to Whslen be
restored to the latter.
The filing OF a suit by the mar Pease to
recover $4,000 for negotiating the alleged
sale of the mines to Billings was g piece OF
assumption wholly unwarranted by the
facts as developed in this case, and Billings
was entitled to an injunction restrain
ing Pease from further prosecuting
his suit, as also against Whalen for an
Injunction in q similar suit. There could
have been no negotiation of a sale If one
were not effected, and the Court would
decide that none was, and that the con-
veyance Of deeds to the mines was under
stood-and made with that understanding
to be simply for security for money
loaned. As to the corporation formed
with 5 1000, 900 capital, the Court held
that to be void, inssmuch as it was made
under false representations. The evil
dence showed that everything was paid up,
go far as 1t was concerned, and there
would be no necessity therefore to pro-
vide for creditors. During the trial the
question came up as TO whether the name
Of Whalen on the stock certificates was
Whalen's own signature. He testified
that il was not. As an incidental fact the
Court declared that it was his signature.
Immediately after Judge Tuley had
rendered his decision Whalen was arrested
and taken before Justice Foote, where Mr..
John O. Dickerson, q gentleman intimately
associated with MIR. Billings, and thor
oughly conversant with every point in the
case, made afidavit charging the prisoner
with perjury, in that he swore falsely to
certain material points in the recent suit,
His bail was liked at SIS, 200, which, being
unable to furnish. he was sent to the
county jail. The preliminary hearing will
be had on Saturday morning next in JUS
tice Foote'S private room. The plaintiff
AYERS that Whalen perjured himself when
he denied his signature to a contract.
The Orphans Lot.