The Helena independent. [volume] (Helena, Mont.) 1875-1943, 1893-04-11
he DENIES THE CHARGES
Col. E. D. Bannister Says There Wa
No Fraud in the Valley
Deal.
He Did Not Appropriate Any OF
the Company's Money to
His Own Use.
The Boom In tho Kmslo unit is OF tho
Did Characteristic
Rich GambettA.

The case of Walter g. Gerry and about
fifty other stockholders Of the Bannlster
Mining company against the Bismarck Ma
tional bank, Col. T.. D.. Bannister ana
Others, in which the compliments made
charges of fraud, was to have come up Tor
argument Ill Judge MoHatton's court, ut
Butte, Saturday. Attorneys from Boston,
Helena and Butte were on hand but, owing
to the absence of MIR. Bannister, the prin-
cipal defendant, the matter was allowed to
20 over indefinitely. Both sides. however,
fled q lot of afidavits. the PLAINTIFF atfi-
davits being in support OF the charges or
conspiracy and fraud on the part of some
of the STOCKHOLDERS with intent to freeze
out all the eastern stockholders. Mi. Ban
mister himself made an atlldavit denying
that in the month of October, 1891. or at
n time, he conspired with w. Z. Chila
or with any other person to cheat or de-
fraud the Bannister Mining company
or any Of its stockholders. lie says
that he became the sole owner ana
purchaser Of the Valley lode, part OF the
property in controversy, some time IN july
1891. and purchased it with his own money
and for his own use. In September he ac-
companied W. G. Child to Boston. not for
the purpose of selling the Valley, but TO
meet the eastern stockholders and discuss
the development of the Bannister COM
pany's property. He told the stockholders
that he owned the Valley and that he be-
lieyed that it would be for the best interests
of the company that the .claim should be
owned by some persons who had the inter-
ests of the company at heart and would not
allow litigation to arise with reference to
the two properties-the Tecumseh and Val
lev, He told the plaintiffs that he would
sell a half interest in the Valley and that
they would hold it jointly. He denied that
he ever told the plaintiffs that he paid
$4,000 for the claim. The plaintiffs
could not buy. but they agreed
that the Bannister company should
become the purchaser and Bannlsser
ngreed to sell to the company for $4,000.
The company had no money and he finally
agreed to take first mortgage hve year bonds
Of the company, bearing 10 per cent IN
terest, payable semi annually, but AFTER
wards, on his own motion. made it eight per
cent. At this time Child had no interest in
the Valley claim. Bannister denies that he
made fraudulent representations TO the
plaintiffs concerning the value, condition
or situation Of the two lodes. and he yet be-
lisves that there is danger that future de-
velopment OF the lode on the Iecumseh WILL
demonstrate that it is but a chute or spur OF
= mother vein, the apex of which Is within
the boundary lines of the Valley, and that
is was for the interests Of the company
either to own the Valley or that the title
thereof should be vested in some one not
in open hostility to the company, for the
purpose of avoiding litigation concerning
the right to follow the vein on its dip.
The affidavit says he never made any
false or fraudulent representations to the
plaintiffs and never intended to fraudu-
lently induce them to purchase the valley
or mortgage the Valley and Tecumseb. HE
admits that there was q meeting In Helena
November 3, 1891, but denies that II was
held in pursuance OF any fraud or conspir.
Acy. 1t Is admitted that he then submitted
a proposition for the sale OF the Valley. but
every proposition made was true and there
was no collision among the trustees to
cheat and defraud the company. and tbs
sale was made in good faith and for the
best interest of the COMPANY. The prop
e,ty was we'll worth $4,000, and Bannistei
denies that he only paid $4,000 for 1t. The
meeting was regular and more than three
:ourths of the stock was represented. anc
zone Of the atlantis stock was voted. Ht
denies that his stock was fraudulentil
transferred to George p. Reeves for ths
purpose Of voting it. The mortgage wa
not voted in the sole interest of the defend
ants but for the benefit Of the company
The earnings of the company was not sutli,
cient to have paid the installment Of SO.
600 into the sinking fund provided 10
by the mortgage, for there was NJ
more money on hand than just t.
pay the Legitimate running expenses
OF the company, and Bannlste
says he was not eager to hasten a defaul
under the mortgage and to foreclose tn
sale. and denies that the earnings OF til
company were in any way mlsapplled o
misappropriated by Bannister or the trus
tees. The default continued for six month
and At no time within that period wer
there sufficient funds to pay the first in
stallment, and the trustees were even IN
able to pay the 81, 400 interest due on tn
mortgage. Bannister says he believes tina
each stakeholder Of the company wa
notified of the company's %fnaucial cond
tion and Of the default of the mortgage
and an opportunity was given to make an
other loan. but nothing was lone and a
owner of the mortgage bonds he demanded
their foreclosure aud the sale of the ptop
erty. None of the trustees are aiding hin
or the bank in she foreclosure, AMI he de
MES that the sale is being made with th
expectation or intent that the defendant
shall directly or indirectly bid off the prop
erty for their own benefit or to acquire tn
Iecumseh claim at no cost to them
bnt alleges the Truth to he tha
there is no. ag cement or arrangemen
of any kind whereby any bid is to /
made in behalf of Bannister or Child an
Benttie, the other defendants. Banniste
has instructed his representatives to bid Z
the sale to $4,000 for the property covere
by the mortgage, but the Did was to /
made in his own interest and for no OF
else. 1t is denied that the property can NJ
be sold to a bona tide purchaser for Sl10
600. The charge that the defendants ha
appropriated to their use the sum of $500
of tho company's earnings or to cause II
company to appear insolvent, SO that tho
might receive large dividends in preferent
to the other stockholders ID also denied.
conclusion Bannlster states in his nfiidGy
that he is still ready to accept tho paymel
of the mortgage held by him, but asser
that there is a conspiracy among the plail
tlts to def aud him of his tights and !
effort is being made 10 settle with him.
Beattie and Childs. who a @ alleged to
in the conspiracy with I5annistef also ma,
htlidavits denying therein any frauuule.
interest III the deal.
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