The San Francisco call. [volume] (San Francisco [Calif.]) 1895-1913, 1895-08-04
NEW TRIAL MAY FOLLOW
Hayward, Hobart and Levy
Found Guilty of Conspiracy
as Charged.
ALLEGATIONS OF FRAUD TRUE.
Three Defendants Must Pay Over
$2oo,Ooo-The others to
Be Retired.

The famous Hale & Norcross mining suit,
by which NJ. w. Fox for the stockholders
of the company sought to recover millions
from the directors and managers of the
concern, was decided by the Supreme
Court yesterday. The findings are partly
favorable to the plaintiff and partly to the
defendants.
The main point of the decision is that
the court finds the accusations of fraud
against the efendants-Hayward, Hobart
and Levy-sustained, and they are denied
a new trial and ordered to pay $210, 1877 so
to the plaintiff.
Just as important is the granting of a
new trial to the other defendants except
the Nevada Mill and Milling Company,
and the decision that the further claim for
$7S9, 618 cannot be determined to be correct
from the testimony taken.
Six or seven years ago a number of
stockholders of the Hale & Norcross mine
began to suspect, from rumors that f1oated
down from the mine from time to time,
that all was not going as it should and an
investigation was set on foot. The
stockholders were soon convinced
that a systematic plan to rob
in order to make a determined effort to
gain what they considered their rights an
association was formed and money raised
for the purpose. Agents were sent to the
mine and a mass of evidence regarding the
manner in which car sample and pulp
assays had been juggled was gathered.
In August, $780, NJ, W. Fox having been
chosen by the association to begin suit
wrote to the directors stating that he was
in possession of information that proved
conclusively that for three years prior to
that time the stockholders had been sys-
tematically robbed by ring composed of
men in control of the mines and those in
the management of the mills where the
ores were reduced.
He said that over 100000 had been
taken from the mine from which the stock
holders had derived no benefit. He de-
manded restitution in that amount, and
threatened suit if an accounting was not
given at once.
AS was expected the directors refused to
give up the funds, and some time later the
great suit was filed. To say that it created
sensation in the mining stock world of
Pine and Leidesdorff streets would be put
ting it mildly. A furry in the market was
the immediate result, the stock of the Hale
d Norcross gaining more strength than it
had for some time previous. AS the case
dragged along through the courts, how
ever, the excitement died out, and Nor
cross took its old place in the line of de-
pressed shares.
W. T. Baggett, an attorney who was a
member of the association, was chosen to
fight the case. He began a stubborn legal
battle with the talent employed by the de-
PENDANTS. The case was contested point
by point in the Superior Court and every
effort made by the defense to have the
case thrown out of court on technical
grounds. The plans of the association at
torney had been well laid, however, and
verdict was finally secured in Judge Heb
bard's court for the full amount asked.
On a new trial being denied by the
lower court the matter was carried into
the Supreme Court. Owing to the magni-
tude and Importance of the case and the
immense volume of technical testimony
to be gone through the case rested with
the higher court for some time, though
the decision has been expected for many
weeks.
The decision throws the bulk of the case
back into the lower court, where the
larger portion of the battle will be waged
over again.
The defendants who are denied new
trial are expected to carry their case to the
l. ~ Ill