The Helena independent., 1892-02-05
No Truth in Recent Sensational
Reports on the Future Of tho
Elizabeth.
Operations Will Probably Be Re'
sumod After the Coquard Suit
Is Decided.
Stockholders Would Not Put Up tho Ten
Cent Assessment on an Uncertainty
- Deer Lodge Mines,

heGeuL T6pOfth Luht L1e IllNhDeLH HlHe
had been abandoned, aud that the BIZ
Metallic would work the property through
the latter's shaft, are entirely without
foundation. At Il meeting Of the directors
III ST. Louis on Friday last, it was decided TO
stop the pump and allow the shaft TO fill
up. This action was determined upon
after it was found that but small proper
tion Of the stockholders were willing to pay
an assessment of 10 cents share on their
stock. But the stopping of the pumps and
allowing the shaft to fill with water is not
very serious affair; in fact, is an econ
omical thing to do. just when the property
will be worked again it is hard to deter
termine. Even though it should be deter
mined to resume operations in ninety days
it will be much cheaper to let the shaft fill
up, and then pump it out, than to keep
three mon steadily employed and the pumps
going during that time.
II the truth were known, ii is probable
the suit OF l.. A. Coquard has great bear
ing upon the actions of the Elizabeth
trustees. While that is pending, it is i'm
possible to raise money on the property
and the st. Louis trustees do not care to
risk more than they have. When
the West Granite was merged into
the Elizabeth the st. Louis people
put in $l5O,O0O. taking as collateral Eliza
beth stock. The Montana men also put up
money, but they had large holdings of West
Granite which they exchanged for Eliza
beth. In case Coquard wins his suit, the
st. Louis people who put up money for
development and took Elizabeth stock for
it, will surely be out. The Montana men
are in better shape, because they will still
have an interest in the mine, owing to their
holdings in the West Granite Coquard
first entered suit to prevent the sale, but
this was dismissed. Then he brought a
new action to have the sale set aside. At
the time of the sale Mr.. Coquard made a
proposition which was not accepted. He
proposed to advance $5O,OOO TO liquidate
the indebtedness of the old company. his
security to be a mortgage on the property
at the usual rate of interest. He then pro-
posed to organize a new company the
stockholders to pay 3212 cents share fot
the new stock. II the stockholders did not
agree to this he would take the re-
naming shares at the stated price, thirty
days after the new company was formed.
I he sale WIS made, however, against Mr..
Coquard's s protests pursuant to this follow
ing resolution, "And said trustees are fur
ther authorized and directed to make said
sale at the earliest possible date to Charles
S. Iaussig for and in consideration of the
amount Of indebtedness Of the company
held BY Charles ). Taussig, providing he
shall agres with the said board of trustees
that, in case said property shall be con-
veyed to him, he shall receipt and deliver
said indebtedness and will dispose of saiG
property as follows: That the said Charlie:
S. Taussig and others who may associate
with him shall organize a corporation un
der the laws of Missouri and Montana un
der the name of the Elizabeth Mining com
pany with Il capital stock of S5,000,O00
divided into 500 900 shares at $40 each pal
value, and by virtue of this conveyance will
transfer SlO0,0 COO cash into the treasury o
the now CORPORATION to be used for operat
ing expenses; said Taussig and others tt
receive 25O.OOO shares in consideration O
the sum of $15O0O0 SO paid as aforesaid
the remaining shares to be transferred t.
A. b. Ewing, of S.. Louis, Mo-, and Mas
soma Bullnrd, of Helena, Mont, in trust t.
be disbursed as followg: 10 exchange tw'
shares of West Granite for one i'll the ney
corporation. stock not exchanged withl
sixty days to be deposited with the secre
tary, subject to the call of the owner
thereof.'' Mr.. Coquard says this trunsfe
was illegal.
This case will probably come up in tn
spring, and until that time tho St. Loui
brokers will hnvo q merry time with th
stock now quoted at 81 cents, despite tn
shut down. There is every confidence ex
pressed in the property by the Montan
stockholders.