The morning call. [volume] (San Francisco [Calif.]) 1878-1895, 1893-02-22

tsSSIk4 kkBakz25 ComstOck mines mas
&Sl6sASSTs' been going on in that
eourt for the last few days and rivals the
great Hale & Norcross controversy lnVolVlne
over million recently decided by Judge
Hebbsrd.
The issues involved 10 the new contest
are as sensational in character. as Tar as the
charges are concerned, and the wealth ana
position Of the parties interested.
To mining men In general, The habitues OIL
the Nevada block aud the holders Of seats In
the Stock Exchange the present suit is vastly
more interesting and important because OF
certain testimony Swallowed forth In the
papers and dispositions already on file In
the court
These indicate, If what is alleged will be
proved to be true, that there has been dis
covered in the Comstock the apex OF
ledge back Of the west wall in virgin ground
which gives to the experts glimpse OF an
immense store of gold treasured up In the
hills for mans use.
p. The alleged ledge was discovered after
penetrating the west wall for $50 feet in a
mine known as the West Consolidated Vir-
GINA and California Gold and Silver Mining
Company, which is very near the famous
Iowa mine of which Jim Fair was superin-
tendent as far back a. 1860.
According TO the statement Of one Of the
.-.-...-............ witnesses who was ex-
Millions Now amined yesterday, at is
case of millions in sight"
III o'gn' Should the alleged dis
''''''''''''-'''''.' coYery prove true, and II be
fact that In the virgin soil back of the
h. hoar nod m,
account of the hardness Of the rock, there
are large stores OF the golden metal which
makes man kiRg IN the modern world, then
a repetition of the old Comstoek excitement
may be expected when the lead IS followed.
The new case Is also interesting from the
fact that one of the principal defendants is
NJ. W. Fox, the mining manipulation, who
was one of the principal plaintiffs and
prosecutors Of the famous Hale & NOrcross
suit, one of the most memorable and most
closely contested mining actions In the
State
In the Hale & Norcross suit Fox posed
and was auded by his counsel as the per-
sonifcation of honesty and purity in his
mining transactions and manipulatiOus.
In the new case in which he is defendant
he is charged with conspiracy, fraud and
misrer resentatons. Of course. in justice to
Mr.. Fox. it must be stated that these
charges have not yet been proved, but they
are very specifically and definitely set forth
in the complaint
Charges of fraud and malfeasance are not
alone brought against Mr.. Fox, but are also
alleged against other officers and directors
of the company.
The new suit mentioned now going on IN
Judge Slac7.'s court is entitled the case Of
F Oscar c. Steele against the West CoDsoli-
dated Virginia and California Gold aud
Silver Mining Company, 81. W. Fox and j.
w. Brown. the president and vice president
: Of the corporation. The other defendants
mentioned IN the complaint are William T.
Baggetf, a. D. Carril, directors; and Porter
q. Andross, secretary.
BaageH was one OF the attorneys for Fox
in tie Halea& NoIeross suit. and represents
him also in the present contest
= The plain tiff. Steele. in his complaint
alleges that he was at one time the owner
of the West CONSOLIDATED Virginia mine
The ground was located under the title of
the William Penn claim in March, 1860,
prior 10 the time when the Comstock mines
had obtained: their world wide reputation
for fabulous wealth. It had been located
: by 4 rfferenr parties prior to the discovery
OF The BONANZA ore bodies, and had been
; paieHtel about the same time as the Gov
etnmeht tile was obtained for the Cali
fofnia. mine.
>: Mr.. Steele AYERS that he entered into
:. negotiations with Brown and Fox in 1887.
@for. the purpose OF developing the ground,
= and*that. they represented that they we're
: financially responsible; that J. w. Brown
: was Ile*possessor Of great wealth and an
s. active member:of the Stock Exchange
-: Bro WI. and Fox, it is claimed, agreed to
adganc e;the necessary OBSERVATION-DISCLOSURES.
:: money for working
and developing the Steeie's Charges
nllihingc lain untilthe Against Fox.
sale. of the. working
eapfalst0ck, and that '.'':''''''''''''.-.'''''
= no: assessneIits should be levied by said
c0rp0Tatioii during the existence of pool
WHICH: should lie formed to control the
stock. and. tiat.the defendants, J.W. Brown
:. and N: w. Fox: would make the plaintiff a
& laIge.s nm % money by the manipulation oil
-.the.st0ck. -: r.
- I'll plaintiff states that fully believing
!. in the representations Of the two de-
::fendants> mentioned, he entered into az
agreement with them by which he trans
:.ferredthe title of the property to the com.
: pany. receiving as his proportion of the
: capital stock 5000 shares. For a working
Z. capital 20000 shares had to be set aside,
which the defendants Cox and Brown
= agreed 10 dispose OF at such prices as could
be obtained for the best advantage of all
Interested in the mine. 1t was agreed that
D 8 Il, 4
! should be handled by Brown until divided
or disbursed. He was to give an account
every thirty days. and when the balance on
=. hand. exceeded $1,000 the excess was 10 be
divided, Steele to get one-ffth and the de.
:, PENDANTS the remaining four-ffths. When
2 5000 shares Of the pooled stock had been
sold and disposed OF. the pool was to be de.
elared dissolved and the remaining 3,75(
shares were to be transferred to Steele.
According to the complaint the sum oil
: S20670 was realized from the sales OF the
capital working stock, but the claim is made
that the sales were not the result OF the
efforts Of either Brown or Fox.
:. The statement Is made that there Is now
remaining in the treasury OF the CORPORA
tien 5515 shares of the work ing capital stock.
The defendants Brown and Fox are said 10
have repeatedly and continuously repre-
scented to the plaintiff that on account OF
the dizziness prevailing in the stock market
1t was net advisable to list the shares on
the exchange board, aud that to do so would
hurt the market value OF the shares.
Steele's next asseveration is that in De-
cember of the same year Fox and Brown
Informed him that they had obtained con-
troll of the Andes Company by an election,
that they intended to have him elected
superintendent of that mine. and that they
had concluded arrangements with the CON-
pany whereby joint work would be carried
on and conducted by the West Consolida-
ted Virginia and Andes Mining Company
that the prosecution Of this work was to bf
reported by the plaintiff. who had also been
made superintendent of the corporation
defendant; that be should not report the
cost of the joint work 20 the West CONSOLE
s.oa Uir0fnia Crmpany but that IL shoui Id