The Seattle post-intelligencer. [volume] (Seattle, Wash. Terr. [Wash.]) 1888-1914, 1892-05-27
HALE 3 NORCRoss swINDLED.
By Excessive Milling Charges and Steal
ings From Refuse Ore.


SAN Francisco, May 26.-The suit Of NJ.
w. Fox, a stakeholder, against the Hale a.
Norcross Silver Mining Company and the
Nevada Mill and Mining Company for an
accounting and for Judgment against each
of defendants in the sum of 100000
alleged to be due by reason of certain
frauds and breaches OF trust resulting from
unlawful combinations on the part Of de-
PENDANTS, was ended today by a decision
from Superior Judge Hebbard against de-
PENDANTS in the sum of $l,0i2,OOO and ap-
pointing J. J. Groom, clerk of the court, as
receiver for the properties until the amount
of the judgment has been recovered. The
suit was the most important mining case
in this city since the celebrated bonanza
suits against Fair. Mackay, Flood and
the Consolidated Virginia company.
During the trial, which lasted several
months, the constant endeavor of Fox was
to show that the directors of the Hale Il
Norcross company were mere dummies
installed in office by Hayward and Hobart
as owners of the Nevada Mill and Mining
Company. and that the latter corporation
charged exorbitant rates for milling Hale
d Norcross ore, besides unlawfully retain
ing shines" and ''tailings" that had been
enriched by a defective mode of milling.
1t was charged that H. NJ. Levy, president
of the mining company, was in collision
with Hayward and Hobart and received a
subsidy from them. Plaintiff further con-
tended that these transactions extended
over long period of time, and that the
stockholders had been robbed of millions
of dollars. The question submitted to
Judge Hebbard was whether defendants
had been guilty of either frau or negli-
gence to such an extent as to entitle
plaintiff to an accounting. Judge Heb
bard, after thoroughly reviewing the case,
announced:
l find the total amour. of the damages caused
to the Hale & Norcross Silver Mining Company
and its stockholders by reason of said unlawful
combination and conspiracy of defendants
herein to DO the sum OF sl,0l2.000. I find that
defendants Alvinza Hayward, W. S. Hobart. the
Nevada Mill and Mining Company and II. NJ.
Levy were members OF Il conspiracy during all
of the time covered by the complaint, ana that
they are and each of them is Liable in the full
amount stated. OF the other defendants. who
We're directors of the Hale & Norcross corpora
ton at different times during these years, / fix
the amount OF each in proportion to the period
during which ne was director by the number of
tons of ore milled during that period, multi
piled by profit of $50 PEI ton, and find each
one to be liable in the following amounts, re-
spectively: C. T. Bridge, $4,000: W. Z. Sell,
$4,000; Joseph W. Souther, $4,000; W. C. Wat
son. $4,000; Charles 2. Egan A. h. P. Harmon,
Joseph Marks and Charles $. Wheeler, $4,000
each: E. B. Holmes, 100000. and J. B. Low,
$4,000.
In conclusion Judge Hebbard orders
that the Hale & Noreross company re-
cover for the benefit of all its stockholders
the respective amounts from all the de-
PENDANTS: that Fox have judgment for his
costs against all defendants; that re-
ceiver be appointed to collect the judg-
ment; that the receivers bond be fixed at
$4,000, and that J. J. Groom, clerk of this
court, be appointed such receiver.