The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1895-07-23

The complaint, the fling Of which
has been foreshadowed in The Herald,
sr the matter of the squabble among
the stockholders of the Began Silver
Mining company was yesterday
planted in the Third district court.
The suit is brought by the minority
stockholders against the Began fac
ton which controls the company. The
plaintiffs ask that the defendants be
restrained from proceeding to collect
the recent assessment of 10 cents
share, and that a receiver be ap-
pointed to take charge of the COM
pany.
Frank Andrews, NJ. S. Ascheim and
about fifty others are the plaintiffs
and John Began, W. j. Began. John
IT. Began, ]. S. Farrell and the Began
Silver Mining company defendants.
The Complaint
The complaint sets forth that the
Began Silver Mining company was
organized on November Is, 1892, with
capital stock of 125,000 shares, of the
par value of so a share; that the CAPT
tai stock of the company consisted OF
the Cumberland, Electric Light and
the Urai mining claims near Park City.
1t was provided in the articles of in
corporation that $4,000 shares should
be and the same was contributed TO
the corporation for a working capital
to be disposed of under the order of
the board of directors. 1t was also
provided that no assessment should be
levied upon the stock until the working
capital provided for as above should be
exhausted.
Tt is then alleged that on June IS,
1895. and while there were 1888 shares
Of no iTa1 cfi1
disposed of, John Began, W. j. Bo-
ban and J. T. Began, constituting
majority of the directors, held a meet
ing and resolved to levy an assessment
of 10 cents per share and proceeded to
collect same.
The plaintiffs, who are stockholders
in the company to the extent of q 900
shares, allege that the defendants, the
Bogans, VINO own about ZOO
shares, have unlawfully and fraud
ulenuy conspired with James P.
and J. E. Quinn for the purpose
of compelling the minority stock
holders to bear the entire expense
Of carrying on the work on the mines
and TO compel them to contribute large
sums of money to be expended by
the Bogans in the extravagant sal
aries to themselves for pretended SER
vices to the corporation.
Manipulation Alleged.
That the Bogans have so manipu-
lated the affairs of the corporation
that their holdings of stock will es-
cape assessments, and that the as
sessments will fall entirely on the
minority stockholders.
That Michael c. Scully was illegally
made secretary Of the company in VIC
lation of the terms of the articles of
incorporation, which provides that any
officer must be the owner of not less
ho vcl 0p 81 l. -,
pany Scully was voted by the Ro-
gans salary of $50 a month, John
Began was voted a salary of $500 a
month as manager, James Began was
voted $25 a month as treasurer, and
w. j. Began, vice-president, $40 per
day for every day he was required
on company business.
1t is alleged that these remunera-
lions are at least double the value of
the services rendered. It is also al
legged that John Began presented
claims amounting TO s10.24425, a large
proportion of which are fictitious; that
the Began faction being in the ma
jority allowed the same, and that in
addition to the claim Of $10,2 pa % an ac- |
count of S2,335 IS shown on the books |
as a credit to John Began
A Family Affair.
Tt is also alleged that most of
the defendants are related to |
each other, either brothers or
brJthers-in-law. and that the Ouinns |
are also related to the Bogans |
and that on June IS, 1895. in pursuance |
of the fraudulent conspiracy the board |
of directors transferred the remaining
working stock, to wit, 9,33S shares, to |
John Began at 80 cents a share and |
that Scully, as secretary, and John
Began, as president, issued to Annie |
Scully, wife Of NJ. c. Scully. 3.1O0 |
shares of the capital stock in excess of |
the $4,000 shares for which the com
pany was Incorporated, and on one of |
the minority stockholders discovering
The fictitious issue, John Began placed /
in the hands of the secretary 900 |
shares Of his own to Offset any claim
thsat might be made on account of said
fictitious stock against the company.
Many other irregularities are alleged
and the plaintiffs pray that defendants
be restrained from collecting the as
sessment levied; that a receiver be ap-
pointed no take charge of t1le property
and for an accounting.
A temporary restraining order was
issued and also an order TO show cause
why same should not be made perma-
nedt and the hearing set for August 81
before Chief Justice ATe1.rit+