The record-union., 1894-09-20

month as gift. He also agreed to be-
gin work upon the mine within ten days
aIter the transfer. and by October, 1898,
they would receive an income from pro-
ceeds Oh the ore. Further, he agreed to
deed three choice lots in Beuiah and
transfer lO.00O shares of the capital stock
OF the MonteZuma Tunnel Company, but
required the Sterretts TO obtain the one
MIN interest of Mary a. Hobson in the
Sterrett mine.
FOR the reason they were IN straitened
circumstances and they had unqualified
confidence in the integrity and good faith
Oh George Montgomery, believing ne
would pay as promised, and that his
statements regarding the value of the
N1onteZuma mine were true, they ac-
cepted his offer.
Immediately Montgomery employed an
attorney 10 prepare contract which, ne
SAD, contained the terms and provisions
as Included in his offer. They signed the
contract without reading it, relying on
MS statements and believing it embraced
all he had promised, no more and no less.
"A clause was inserted giving Montgom-
cry the right to purchase on nis own ac-
count outstanding interests in the mine
and 10 perfect title in case the Sterretts
Jailed to do so in one year. lie also re-
served the right TO reScind the contract at
any time by giving notice of thirty days.
Then all money advanced, including the
600 month TO John and Thomas SteTrett
should be paid back
Three lots in Beulah and the 10000
Montezuma shares were given the Ster-
retts, and in return, in August, 1892, they
executed a deed to part of their mine
They procured a quit-claim deed from
Theodore Winters in the following Octo-
Der to Montgomery CT all right and title
TO his interest III the mine. AS SubSti-
tute for conveyance, the deed to one
extension being lost. II. G. Sterrett To-
Gated that branch in Mrs. NJ ontgomery's
name. a similar procedure took place
regarding the Sailor Canyon placer claim,
which was located i'll the name of Philip
hyle, which name was given Sterrett by
Montgomery as the name in which he
desired the claim relocated for purposes of
his own. The fifth interest OF Mary Hob
son was secured III the name of q. w.
Martin, in July last, when about to sell it
to the Sterretts, but Montgomery paid the
purchase money. 1t is claimed that Mar
tin appeared in this transaction solely to
help Montgomery, and to prevent the
SterrettS from acquiring her interest by
which they could live up TO the contract.
But this act is regarded as a deliberate
breach of the contract.
In December, 1892, an undivided one
half interest in the property was sold to
A. w. bennett by Montgomery for the
nominal consideration of 80, without the
SterrettS' knowledge.
In June, 1898, Mr.. and Mrs Montgom-
cry jointly made their deed of conveyance
OF an undivided one-third interest for a
nominal consideration of So, likewise
without Sterretts' knowledge, to Charles
Ii. Crittenton.
Then the La Trinidad Mining Company
was incorporated year ago with a capi-
tai stock of 5000, 900. divided into 30, 900
shares, value 500 each. All the stock
has been subscribed for, Montgomery,
bennett and Crittenton taking the sum of
$685. the balance going to the incor-
poratorS.
The Sterretts were accordingly left out
in the cold.
Now they claim that the Montezuma
mine and the Montezuma tunnel shares
are and were wholly valueless; that the
mine was not operated when Montgomery
made representations about it, and had
practically been abandoned. The stock
was not on the market and could not he
sold. The Beulah lots are worth only
SoO. The Sterrett mine has not been
opened, and it yields no returns in conse-
quence. The Sterretts pray that the con-
tract be rescinded on various technical
grounds and ask for damages in the sum
OF 100000 against Montgomery, if Den
nett and Crittenton were honest pur-
chaserS In good faith.