The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1895-08-22

As was foreshadowed by The Her
aid would probably be the case, iere
was no sale yesterday of the 5000
Shares of stock in the Geyser Mining
company, held in the treasury of the
company subject to he orders of the
board of directors. The cause of this
was the planting of a suit against the
company and Messrs. Miner and Both
we'll by NJ. T. Osborn, vice-president
and owner of nearly one-haf OF the
stock of the company. Mr.. Osborn
holds that there is no necessity for the
sale of the treasury stock, the com
-&aany being comparatively free from
" ebt. and he further claims that the
7Groposed sale was to be made IN oroer
Shat the control OF the company might
be forever wrested from him. An ad-
VertiSement of the sale has been run
ming in the Deseret News for some
time, and Osborn evidently does not
consider that paper Journal OF gem
eral circulation, for he says IN ms
complaint that the defendants knew he
would be less likely to see the notice
of the sale if published in the News
rather than in any other paper
The order for the sale of stock was
made at regular meeting of the
board of directors, SO say the defend
ants, and there was no intention of
6efrauding Osborn out OF any of his
rights. On the other hand, it was
proposed to reject any and all bids
that did not reach a certain good
figure, in order that the company
might be amply protected. The rev.
enUes from the sale were to be APP
Piled upon the payment of any of the
c6fnpany's debts, all balances to go il
to the treasury. Three bids were re-
ceived prior to the hour named in the
advertisement and the award was to
have been made yesterday morning,
but for the filing of the suit. Attorney
Burton made an offer to take the en-
tire 5000 shares at 40 cents per share,
while Mrs. s. B. Miner proposed TAX
ing 5000 shares of the block at so cents.
These were the highest bids made.
Before ahy action was taken by the
board Of directors the notice of the
suit was served upon the defendants
named and the proposed sale went
over Indefinitely. The papers in the
case make the following formal show
ing:
Matthew T. Osborn has begun suit
against the Geyser Mining Company,
s. B. Miner, Robert Z. McConaughy
ana Glen r. Boutwell,. 1t is alleged in
the complaint that the capital stock
Of fhe Geyser Mining company is di-
Vided into 100000 shares, of which the
plaintiff owns $4,000 shares, and the
defendants Miner, Boutwell, McCon-
INghy and others own $4,000 shares, all
~ which Miner, Boutwell, and Me-
Wonaughy control. The remaining
10000 shares are treasury stock and
subject to the orders of the corpora
ton. The property of the company is
made up of mining claims situated in
. the Camp Floyd mining district. which
I'M only lately being extensively de-
'Sssloped and to all appearances will
IN a short time be demonstrated to be
worth large amount Of money, but at
the present time the stock if placed
on the market would not bring near
&x proper value.
Plaintiff then goes on to state that
the debts of the company are insight
ficant. but that the defendants, Mil
ner. Boutwell, and McConaughy, who
form a majority of the board of di-
rectors, conspired together for the pur-
pose of obtaining control of the man
agement of the company, passed a
resolution on August 13 1895, that
5000 shares of the treasury stock
Should be sold, and advertised the
s%1ne. Plaintiff says he is now the
lessee Of the property belonging to t2e
company and has erected a mill there
on and is engaged in the reduction of
ores under the lease and has invested
all his means in the same Such being
the case. he would be unable TO COM
pete with the defendants for the pur-
chase of the 5000 shares of stock. Gis-
dorm alleges that the sale of the 5000
shares of stock is proposed to be made
for the sole purpose Of enabling the
defendants to obtain control of the
property. 1t is. therefore. prayed that
the defendants be enjoined from sell
ing or disposing of the said treasury
stock
Judge Bartch issued a temporary
restraining order returna'ble September
4. and the AMOUNT Of the bond was
fixed at 81 500.