The morning call. [volume] (San Francisco [Calif.]) 1878-1895, 1894-09-19

A. Hobson. The mill site and first south
extension were in Winters name. Z Large
sums of money lad been expended in per-
TO rming the necessary annual labor on the
mines and In developing them and pro-
tecting the right of possession. In the
aggregate the Sterretts claim that the
properly is worth S250,000.
In 1892 the Sterretts were advanced in
years and without means OF subsistence.
nor had they strength to earn a livelihood.
Rev. Samuel Sterrett was a friend of
George S. Montgomery. in whose in egrity
and good faith he trusted implicitly
on account OF the relations of both TO
the church and professions of friendship
which he had expressed frequently to the
Sterretts. Prior to August 1892, they in
formed Montgomery of their financial
condition and circumstances and of their
immediate necessities. Rev. Samuel Ster-
rett called his attention to the mining
properly and stated his brothers willing
ness TO sell il, asking him TO fully inyesti-
gate its character and value, and in the
event he should be satisfied regarding the
property requested that he either pur-
chase the mine or help them to dispose of
it. They told him it was worth $25O,000.
Montgomery visi ed the mines and made
a thorough inspection. Then he told the
Sterretts how he owned large number of
shares of the Montezuma Tunnel Com
pany, which owned and operated drift
placer mine in Tuolumne County knCwn
as the Montezuma mine. which was repre-
sented as being Of great value, and with
developments upon it by a bedrock tunnel
had demonstrated that the mine was won
deIfully rich in gold. Montgomery in
formed Thomas Sterrett he had been told
by a man who had worked In the Monte
yuma that gold had been actually shov-
eled up under the water. and that there
was enough gold in it to pay the national
debt of the United States. But the mine
was not then producing large amounts of
gold because the bedrock, upon which the
rich gravel lay. had pitched downward
into the water; but if a short tunnel was
excavaied into the gravel to act as a drain
the mine would yield a large return.
Montgomery also spoke of his valuable
town lots In Beulah.
Presently he waited on the Sterrett
brothers, whom he offered $4,000, they 10
receive three-fourths of all the net pro-
ceeds of the Sterrett mine until that
amount was paid, without STIMULATING a
time for payment to end. Until the reduc-
tion of ore should commence he agreed to
pay Thomas and John Sterrett $25 each a
month as gift He also agreed 10 begin
work upon tue mine within ten DAYS after
the transfer, and by October, 1898, they
would receive an income from proceeds OF
the ore. Further. he agreed to deed three
choice lots in Beuah and transfer 10000
shares of the capital stock of the Monte
yuma Tunnel Company, but required the
Sterretts to obtain the one-fiith interest of
Mary a. HObson 10 the Sterreit mine.
For the reason they we're in straitened
circumstances and they had unqualified
confidence in the integrity and good faith
of George Montgomery, believing he
would pay as promised, and that his
statements regarding the value of the
Montezuma mine. were true, they ac-
copied his offer.
Immediately Montgomery employed an
attorney to prepare a contract which, he