The San Francisco call. [volume] (San Francisco [Calif.]) 1895-1913, 1895-08-09
STOCKHOLDERS AROUSED.
Scandal in the Consolidated
California and Virginia
Mine.
The Superintendent Accused of
Withholding Information for
the Chosen Few.

Many stockholders of the Consolidated
California and Virginia Mining Company
are dissatisfied with the conduct of Super
intendent Lyman. They assert that i'm
portant information is often concealed
from the large body of stockholders and
impaired only to a favored few at head
quarters. The grievance of the complaints
is set forth in the following communities
ton from Edward l.. Spring, who speaks
for himself and others:
SAN FRANCISCO, Cal, August g. 1895.
To the President and Directors Of the CONSOLE
dated California and Virginia Mining Company,
Nevada block San Francisco, CAL: GENTLEMEN-
In April and May, 1894, we were informed by
ID. B. Lyman, our superintendent at Virginia
City, in Storey County, Nevada. where the
mine of this company is situated, that large
body of ore had been cut, lying upon the west
wall on the 1850 level of the mine, from which
it was expected that many dividends would be
paid. At that time we read in the reports OF
our Superintendent that he was cutting the
body of the ore into 14foot levels, running these
levels from the outside of the body of ore q
considerable distance through barren materlal
thereby wasting the money of the company in
improbable and useless work, whereas we
believe it would have been the correct way of
working to have sunk wlnze through the
body of ore to ascertain its depth and by so
doing saved the money of the company for the
benefit of the shareholders.
We have since been informed upon good au-
thority that our superintendent at that time
and since was actively in the stock market
buying and selling the shares of the company,
and from the policy pursued we have been
fearful that the working OF the mine mlgh
have been carried on in such way as to affect
the value of the shares of the company for
stock Exchange purposes.
We have been further informed that brokers
and other parties living in San Francisco and
elsewhere have been given private information
by our superintendent, which information did
not appear in his official reports, or if it did ap
pear in the official reports of the company it
did not appear for some days after it had been
given TO the private individuals, and that the
official information at times given by our su-
perintendent has been ambiguous ard mis-
leading. We therefore respectfully request of
you:
First = That you ask our superintendent
whether or not he has been an active operator
in the buying and selling of the shares of this
company since April L. 1894, and to what ex-
tent he has been buyer and seller of such
shares, and to. II possible, ascertain from him
the dates of his transactions in the shares of
this company.
Seeond-That you ascertain whether or not
the slicing up OF the body of ore referred to
was done at such times as might have in
creased the value OF the shares in the market
or at time when it would have had ten
dency to destroy the value of the same: and,
failing to ascertain this, that you give us an
opportunity to present before you evidence
which might tend to show that Mr.. Lyman, our
superintendent, has not been q competent man
for that position and that he has done injury
TO the property which you represent, as truS-
tees, and which property is really the property
of the shareholders, and ought TO be protected
and worked for their benefit.
Third-That In the event of it being ascer-
tanned by you that our superintendent is in
competent, or that he has been using the
knowledge of the mine for the purposes of
bearing or bulling the market, that he will then
be discharged from his position OF superin-
tendent and that some competent mining man
will be placed in charge of the mine of this
company at Virginia City.
We beg to give you notice that in the event
of our present superintendent remaining in
charge of the mine at Virginia City and infor-
nation being continued TO be given to private
parties and withheld or kept back from the
official reports, we then Will hold you respon-
sible for all damages which may come to us by
reason of the acts of our superintendent.
In conclusion we wish to say that we believe
that you have not a full knowledge of the acts
of our superintendent at the mine and his
speculations in the stock, and we therefore
take this means of bringing it to your knowl-
thing done at an early date, and give to the
shareholders of the mine such relief as the
merits of their case may warrant. Very re-
spectfully yours, EDWARD s. SPRING.
Representing for himself the stock upon
record upon the books of the company, and
also that of the stockholders who are in
favor of what Mr. Spring says and does.
The foregoing communication was trans
mitted to the company's Office yesterday.
Under the law the stockholders are enti-
tied to the information desired. Mr..
Spring says that if the president and dl-
rectors refuse to comply with the request
made the law will be invoked to assist the
stockholders.