The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1894-06-30
LOOKING AFTER THEIR CASH.
How EngIisbmen Were Taken in in
the Black Hills.

How EngIisbmen Were Taken in in
the Black Hills.
New York, June 29-Judge La Combe
has appointed Albert R. Latoux tenn
porary receiver of the Harvey Peak
Tin Mining, Milling and Manufacture
ing company. The complaint accom-
panying the application for receiver
charges fraud against the trustees of
the defendant company, Lewis May,
James Flanagan, William M. Dean,
William Nelson, George Ehret, Charles
D. Desper, Herman Knubel, Louis D..
Weber, w. l.. Flanagan, the estate of
frederick w. Foote, the estate Of
Henry Clausen, jr., the estate of Daniel
s. Appleton, Samuel Undermeyer and
the Farmers Loan and Trust company.
Complainants in the suit are Charles
FIe1sner, Henry l.. Maud, Charles
Fletcher, e. Denny, Edward M. Denny
and John S. FalloAI
The history of the case as told by
the documents is briefly as follows:
The Harvey Peak Tin Mining. Mill
ing and Manufacturing company was
Incorporated under the laws of this
state on April 16. 1884. to do business
IN THE Black Hills region of Dakota
The principal organizer of the comz
pany was James Wilson and the trus-
tees were William M. Dean, Charles
Casper, Herman Knubel, D. r. Berry,
w. j. Russell, James Wilson and c.
M. Field. An issue of s5,000,000 was
made at once to purchase, as it is
claimed, property worth only $17,G00
On January 81, a second issue OF s5,O00,-
600 was made to Oliver F. Berry, as
trustee, and THE following year a
third issue of a like amouht TO Henry
Clausen, of the English complainants,
who afterward took part of the stock
which they NOW say was issued to the
trustees as blind, and that the
books were so juggled as to make it
difficult to discover the fraudulent con-
spiracy and gains, which they allege
We're divided among a syndicate of
stockholders. In 1880 an agreement
was entered into by Samuel Under
meyer and Edward Sabine Barring
Gould, the Right Hon. Lord Thurlow
and John Taylor, of England,
and the Harvey Tin Mining,
Milling & Manufacturing compa-
ny, by which the Englishmen obtained
SO 900 shares of stock, at 800 par value
in addition to $685. 900, only a small
sum of money was paid up, but two
subsequent agreements were made by
which the Englishmen were issued FL
900 in bonds of an English company
giving security for the rest, which
they failed to do, but Fl, O00,0 600 were put
on the Black Hills property, which were
issued to the English company in part
pay and partly as security.
Another f1O00,0O0 mortgage was aft
terward placed, and about 400 mining
claims were purchased, but an attempt
was made to work only twenty of them
and the only thing mined, according to
an affidavit of George n. Hamilton, was
1000 tons of ore which has never been
treateda The Englishman, who had in
vested over S5,000,000 becoming suspic-
ious. sent over agents to investigate,
and it is alleged found that the Amert-
can owners had put up only $4,000 in
cash for all the property. Not more
than 100000, it is said, had been ex-
pended in working the mines, and bull
ding the mills. and the English want to
know where their millions went to.
The books of the company We're seiz-
ed at SO Wall street this Afternoon, and
subpoenas served on the defendants.