Hot Springs weekly star. (Hot Springs, S.D.) 1892-1917, 1894-07-13
HARNeY PEAK

III Atbn SOk11O
pany Think They We're Swindled.
The complaint carrying the applica-
ton for a re%ceiverfor the Harvey Peak
Tin Mining, Milling and Manufacture
ing Company charges fraud against
the trustees of the defendant company,
Lewis May, James Flanagan, William
NJ. Dean, William Romsen, George
Ehret. Charles ID. Despler. Herman
Knubel, Louis ID. Weber, w. l.. Flan-
nagan, the estate of Frederick w.
Foote, the estate of Henry Clausen,
jr., the estate of Daniel S. Appleton,
Samuel Untermyer and the Farmers
Loan and Trust Company. Complain.
ants in the suit are Charles Fletcher,
Henry L. Maud, Charles L. Denny,
Edward NJ. Denny and John S. Sellon.
The history of the case, as told by
the documents, is briefly as follows:
The Harvey Peak Tin Mining, Milling
and Manufacturing Company was in
corporated under the laws of this state
on April l6. 1884, to do business in the
Black Hills region of Dakota. The
vas james Wilson, and the trustees
we're William NJ. Dean, Charles Des.
pier, Herman Knubel. o. F. Berry, w.
j. Russell, James Wilson and c. NJ.
Field. An issue of $4,000 stock
was made ut once to purchase, as it is
claimed. property worth only ST. 600.
On January 81 a second issue of So
600. OO0 was made to Oliver F. Berry as
trustee. and the following year a third
issue OF a like amount to Henry Clau-
sen. jr. The English compliments
afterwards took part of the stock,
which they now say was issued to the
trustees as a blind. and that the books
were so juggled as to make it difficult
to discover the fraudulent conspiracy
and gains. which they allege were d.
vided among a syndicate of stock
holders.
In 1890 an agreement was entered
into between Samuel Untermyer and
Edward Sabing Barlng-Gould, Rt.
Hon. Lord Thurlov and John Taylor
of England, and the Harvey Peak Tin
Mining. Milling and Manufacturing
Company by which the Englishmen
obtained 10000 shares of stock of 500
par value for 81, $4,000. Only q small
sum of money was paid, but two subse-
quent agreements werc made by which
the Englishmen were to issue El.OOO.-
900 in bonds of an English company.
giving security for the rest. which
they failed to do. but 1000, 900 in
bonds were put on the Black Hills
property, which were issued to the
English Company in part pay and
partly as security. Another sl, OoO,-
600 mortgage was afterward placed,
over 400 mining claims were pur-
chased. but an attempt was made to
work only twenty OF Them. and the
only thing mined, according to an atfi-
davit of George N. Hamilton, was
1000 tons of ore which has never been
treated. The Englishmen. who had
invested between 49, 900, 900 and ST.
100000, becoming suspicious, sent
over agents to investigate, and it is al
legged found that the American mem-
bers had put up only $500. 600 in cash
for all the property. Samuel Inter
myer. it is charged. while on a salary
of $1,000. actually represented $780,
600 in cash and stock, and others have
received sums more or less exorbitant.
Not more than 5000, 600. it is said,
has been expended in working the
mines and building the mills, and the
Englishmen want to know where their
millions went to. The books of the
company we're seized at 33 Wall Street
and subpHnas served on the defend.
ants.