The morning call., 1894-09-07
MILLIONS IN 1T.
Fox Coming to the Front
With His Suit.
The Deposition of Charles ii. Fish
Taken Before Notary-fijs Big
Vote by Proxy.

The deposition Of Charles III. Fish in the suit
of Theodore Fox VS.. John w. Maekay and the
Consolidated Virginia and California Mining
Company was taken yesterday before Notary
j. P. Poole, IN the office Of the plaintiffs aItor-
ney, Ii. q. SebeTt.
fish has been president OF the defendant cor
poration for number OF years, and on account
OF his old age il was deemed advisable TO per-
retuate his testimony so that II could be used
IN case Of his death.
The suit in question was first taken into
court in 1876, Its object being TO secure an ac-
counting OF the affairs OF the corporations man
aged by the defendants.
Last July Fox filed an amended complaint In
which he seeks to recover for himself and
other stockholders OF the Consolidated CalifOr-
MIA and Virginia something like S5,000,O00.
In this suit the defendants are John Mackay,
Senator John c. Jones of Nevada. Charles III.
Fish, George II. Wells and Cornelius OCoHnor,
members of the board OF directors, aud the
COmstOck Mill and Mining Company.
The allegations IN the complaint are similar
TO those which formed The basis OF the famous
S1OOO.0O0 judgment awarded NJ. w. Fox by
Judge HebbaTd IN his suit against The Hale &
Norcross Mining Company, which Is now on
appeal 10 the Supreme Court.
The conspiracy IN this case, by which the
mine Is alleged TO have been manipulated
wholly in the interest OF the defendants, who
formed the board Of directors, consist ed, IL is
charged, OF awarding fraudulent contracts,
watering stock and other more or less serious
acts. designed for the purpose of personal gain.
The matter touched upon yesterday morning
was principally with regard TO a contract which
the directors awarded Senator Jones on May 8,
1885, giving him The exclusive right TO work
certain levels OF the mine for period OF three
years.
Fish testified that such contract had been
awarded at the suggestion of Jones, who
claimed that he could place the mine again on
paying basis, while al that time the losses
were great.
The terms upon which the agreement was
effected were found TO be far from beneficial TO
the company, which PAID Jones $4,000 al the
end OF the first year TO secure a lease OF the
contract and thus put an end 10 bad job
This being DONE the directors entered into
new agreement with the ComstOck Mill and
Mining Company, which was owned aud con-
trolled by Jones. Mackay & Flood. to mill the
ore OF the California and Virginia mine.
The company was paid 81 ton for crushing
the ore, while the average charge for crushing
was 81 ton. This OyeTcharPe amounted 10
something like 81 1927, 046.
Another charge which seemed to cause the
witness some uneasiness In clearing up was
in reference TO the $1,000 shares OF stock
which was sold by the company for 81 per
share.
The stock in question was bought in by
the company In default OF the payment OF as
sessments thereon. and by order OF the direct.
ors it was disposed of at the price named.
The stock was bought In lump aud placed
In the name OF George Grant.
Shortly afterward the market suddenly rose
and the same paper was disposed Of fox
S5S7, ,916 45.
Fish admitted that OF the 1872, ,691 shares rem.
resented at the meeting when the sale was
authorized he voted by proxy 172,499. He ad-
mlted having repeaed tEis at various meet
ings when he desired 10 carry point.
The examination OF the witness will continue
at any time the prosecution may deem il neces-
sary before notary, while The case Itself
may come on for hearing by the end of this
wear.