The San Francisco call. [volume] (San Francisco [Calif.]) 1895-1913, 1895-10-26

cases and by information that has otherwise
come to my knowledge that neither Mackay,
Flood nor Jones own any considerable portion
OF the stock of the Consolidated California and
Virginia Mining Company, yet, through the
cooperation of a number of brokers who have
the custody of stock for customers, they are
their tools as directors, and thus secure con-
troll of property in which they have invested
at best but trif1ing amount
This would be impossible were the brokers
not to "stand in on the deal, but they dare
not refuse to loan this triumvirate the stock
which really belongs to their customers be-
ing off in their business, and their customers
on their part are Indifferent or else are in debt
to the brokers and dare not interpose any OBJ
lection to their rights being ignored or bartered
away.
But did ell the bona-fide stockholders know
the real situation they could and undoubtedly
would prevent these unlawful and unjust pro-
ceedings. Were each stakeholder determined
to vote his shares there would be few for the
brokers to loan to the manipulators. The re-
suit would be that set of trustees would be
elected, who would honestly protect the stock
holders, or the manipulators would have to go
into the market and buy enough shares to give
them a majority, in this particular case
los, DOL.
What this would mean to the bona-fde holder
of stock was shown when the contest in the
Ophir Company some years ago was fought.
Just before the election the stock was quoted
at $50, to which figure it had risen from about
81, and from 81 to 81 share was paid for the
K.
The day after the election the stock had
dropped back to S2
To get back to Mackay Flood and Jones'
They own the Comstock Mill and Mining Com
pany, and through the dummy trustees they
succeed in electing for the Consolidated Cali
fornia and Virginia Mining Company they
make contracts for milling the ore of the mine
at So to 81 a ton, when it is actually worth no
more than 81. In this way they are sure of
from So to So profit every ton of ore ex-
tracted from the mine, while the real stock
holders of the mine must be satisfied with
what is left for dividends after the milling bills
are paid.
To show what the three millionaires
have been making from this deal Mr..
Sieberst quoted figures from the reports of
the Consolidated California and Virginia
Mining Company, giving the output of the
mines for six years ending October 1, 1891.
These show that about 715, 800 tons were
taken out during that period, valued at
about Sic, 900, goo. and that the mill COM
pany was paid nearly 5000, 600 out of this
amount.
In concluding the interview Mr.. Sieberst
said he did not see how the case could be
decided otherwise than in favor of his
client, and cited the decision of the Su-
preme Court in the case of Stewart ct al.
VS.. Mahoney Mining Company ct al. In
this case Hyman P. Bush voted 1000 shares
in which he had no interest, nor was he
the owner of any shares of the company
In rendering the decision the court stated
as follows:
Bush was not the proxy or representative of
either OF the owners of the stock, nor was he
mem Der of the corporation, nor was he bona
fide stakeholder, therefore he had no legal
right TO vote the stock.
with our victory in this suit" he
added, twill come an end of the present
pernlclous system of proxy voting"