The morning call., 1893-03-04
YIELDS A POINT.
The Litigation for Control
of West Consolidated.
sTEEL's CONTRACT CANCELLED
Plaintiff Gives Some Interesting Tes-
timony-Why James L. Flood Was
Hostile to the Andes People.

The first genuine surprise In the West
Consolidated Virginia and California min
ing suit, now on trial before Judge Slack,
came yesterday in the shape of the consent
of the defendant, NJ. w. Fox, through his
counsel. William T. Baggett, to the rescnd-
ing of the contract with Oscar c. Steel, tn e
plaintiff, by which the latter tied up all his
stock In the corporation in bliud pool TO
be manipulated by Fox and Brown.
During the morning Attorney Joseph NJ.
Nougues had called as witnesses to the sale
and market value of West ConsolI dated
stock John NJ. Mccarthy, f. ellison and B.
Hernghi.
Mccarthy testified that he stlll owned
portion of the stock and had bought be-
tween five and six hundred shares at prices
ranging from 81 to So so a sbare.
ellison testified that ne thought his fortune
was made when he bought four or five
hundred shares at 81 a share. He was
formerly employed as a clerk by j. b. L.
Brandt. who had been at one time secretary
of the West Consolidated, and the pointers
he received before he speculated were of
such roseate character as to justify his
anticipatiOns of wealth.
HeInghi testified that as a broker no had
handled between five and six thousand
shares, which he. had bought and sold at
prices ranging from So to 50 80
Nj. w. Fox, the defendant, was called as
witness for the plaintiff. His testimony
related to his correspondence with Sam
Curtis. through which he had obtained the
idea that the mining claim owned by Steel
would prove very valuable. He believed
Brown to be a wealthy man at the time he
formed combination with him to incor-
pOrate The West Consolidated Virginia and
California Mining Company and TO control
the Andes mine, adjoining Steel's claim.
At the time Brown resigned from the
presidency of the Andes Company, witness
dlstrusted him and called on him to deliver
mp the stock in the West Consolidated pool.
Brown told witness he had no faith in the
representations of Steel and Curtis that
there was any ore body in the mine, and
that Fox could have the stock for what it
owed Brown. They had an angry alterca-
tion over the matter, ard finally Fox and
Brown went together to the Safe Deposit
Company, where Fox gave Brown receipt
for the stock, at the same time paying
Brown his claims. When Fox examined
tile certificates ailerward, he discovered
they represented less stock than that for
which he had gwen receipt. At this time
witness had better opinion of the mine
than had Brown. He had not communica-
ted to Steel, who was also a director in the
company the fact of Brown being short of
the stock. Brown also informed witness that
he intended to 20 into bankruptcy, where
upon witness said: "All right, Brown, but
I'd ike to have Judgment for $4,000
against you"
Mr.. Fox said he was not particular as to
the number of shares he recovered from
Brown, so long as he got majority, or
enough TO control. The amount that was
turned over to him was 1880 shares. He
could not remember tho amount for which
he had Tecepted; neither had he investi-
gated what had become of the missing stock
Mr. NouRues endeavored TO secure a
statement from Fox of the reason why
Brown had resigned the presidency of the
Andes. Counsel said be proposed to show
that Brown was removed because there
were irregularities. The testimony on this
line was, however, excluded.
Subsequently Mr.. Fox testified that j. l..
Flood, who was one Of the enemies of the
Andes board of directors had put Brown
| out and put Nat Messer in his place. Brown
| had twice withdrawn his resignation at the
| solicitation OF witness, and once the enc
| mics of Andes had locked Brown up in a
room TO prevent his attending meeting of
| the board OF directors.
Asked for his reasons for Floods hos
! tility, Mr.. Fox replied that lie understood it
was because tie Consolidated Virginia had
: extracted ore from the West solIdated
ground by drlft from the $50 level. which
would be equal to an 100 level in the West
| Consolidated. Witness had held no CONVEX
| satlon with Flood IN regard to his being an
| enemy TO the Andes people. He had, how
ever. spoken to Flood il Eemonstrance to
| his forcing Brown out.
| Mr. Nougues began questioning Mr.. Fox
| Ii regard TO his sOiVeDcy, but Mr.. Baggett
| very strenucusly objected. Tie course of
| the sparring between counsel was finally
| Interrupted by an offer on Mr.. BaggetCs )
| part to consent 10 the dissolution of the
| contract, which was one Of the principal
| objects for which the suit was brought.
| Mr. Baggett said that his client, Mr. Fox,
| had offered to and been willing from the
start to give Mr.. Steel back his stock and
! dissolve the pool. He was also willing to
| let Steel have all that Fox had lost.
Mr.. Nougues laughed al the idea of Fox
losing anything. and denied that any such
| offers had ever been made by Fox.
Proceeding with the examination, Mr..
| Nougues ELECTED from witness the fact that
| the directors of the West Consolidated Com
pany had removed the Office of the company
| from 500 to 324 Pine street without causing
| a record of the change TO be entered on the
| minutes, and from The new Office mad levied
an assessment on the stock.
The contest between the parties to the
suit will be continued for the accounting.
The c0nsenttO surrender stock to Steele in
wolves only %, 100 shares, but Mr.. NOugues
is fighting Tor the recovery OF 5000 shares
| allotted jointly to Fox and Brown when they
entered into the contract with Steel 20 in
corporate and make a deal in West Con-
solidated stock in conjunction with some
heavy capitalists whose names were with
held.
Mr.. Nougues also seeks the recovery of
Il, $50 shares delivered TO Fox out of the
pool on Steeps order, and which Steel
claims was procured under The false repre-
sentation that these capitalists really had
an existence. This order was produced in
evidence and reads as follows:
January II, 1885,
J. " Br0Jgn, Treasurer Vest Can. "a aud
Cal. Iii ming COmpdHy-Please deliver 10 ~. W
Fox or otder twelve thousand five hundred and
sixty az, 500 shares of the West Con. Va. and
Cal Mining Company stock for my account for
value received. Said S ock TO be carried by a
party named j. W. Brown, TO assist in the
manipulation OF said stock. o. c. STEEL.
The battle for the control of the alleged
BONANZA will be resumed on Monday before