The San Francisco call. [volume] (San Francisco [Calif.]) 1895-1913, 1895-11-08
They DEMAND A RECEIVER
Bondholders of the Cherokee Butte
County, Mine Make Grave
Charges.
ATTORNEY CROSS UNDER FIRE.
He Is Accused of Unprofessional Con.
duct in Big Mining Foreclosure
Case.
ATTORNEY CROSS UNDER FIRE.

The productive Cherokee gravel mine of
Butte County, one of the oldest and larg
est hydraulic mines in the State, may
pass into the hands Of a receiver to-day.
Judge Prewett of Placer County, who is
holding a brief session OF court in San
Francisco, viii this morning pass upon
the application of the bondholders to have
the property placed under his Honor's
care, pending the foreclosure OF their lien.
The demand for a receiver made by the
bondholders came I'D before Judge Prewett
IN the form OF an emergency affidavit, in
which gross negligence, if nothing worse,
was charged against the agents OF the Bank
OF California, which for seven years past
has been in possession of the mine.
Graver accusations were also made
against c. W. Cross, the attorney for the
mining corporation, charging that he has
taken advantage of his position as legal
adviser of the corporation TO betray them
for his own or the Bank OF California;
gain.
In the affidavit made by Attorney Blake
man, acting for the bondholders it is
charged that Cross, while acting as the
attorney for the mine, has relocated, or,
| in mining parlance, Jumped" in his
| own name and in that OF his two sons the
| entire unworked portion OF the lead to the
| mine. 1t appears that the mining COM
pany fifteen wears ago purchased some 500
| acres of mining land adjolnlng its prop
| erty from a man named Charles Waldo
yer, now deceased. Attorney Brakeman
| less than month ago learned for the first
| time that Waldeyer never had a valid title
| to the land he sold the company. As the
! land is where the lead of gold now runs
the peril of the situation alarmed him.
| IJa tont- q yI-i+ him 70 ha
of the property at Cherokee, twelve miles
north OF OroviIIe, IN Butte County, for the
! object OF locating the land for the benefit
| of all parties concerned, but when he ar
rived on the ground he discovered that
Cross had been there few days before and
| taken up almost the entire lead.
II his action stands it will deprive the
company, of which he has been adviser for
years. of one of its most valuable assets
! Mr.. Cross is known as mining lawyer of
repute.
| For seven long tedious years the bond
| holders have been vaialy seeking to fore
| close their lien on the mine, but their at
tempt has so far been successfully opposed
by the Bank OF California and \. d. Ride
| out, the Northern California banker, both
| being unsecured creditors against the mine
| The contest has been conducted on purely
! technical grounds, the points OF dispute
| being fine and intricate.
| w men the DOAOIIO4ueIS DTOugnL IQSlT
! foreclosure proceedings in 1888 the Bank
OF California and Rideout were owed ap-
| .proximateiy $4,000 by the mine.
They obtained possession of the prop
! erty through a Judgment, bidding it in at
| Sheriff's sale. Then they began their tech
nical fight to have the bonds declared IL
| legal and void. The case has already been
before the Supreme Court. and on that oc-
| casion the bonds were held to be valid,
Judge Prewett, who had decided that the
bonds were illegal for informalities in
their execution, being reversed by the Su-
preme Court.
The reversal occurred few months ago,
and now the bondholders are anxious to
have receiver appointed TO supersede the
agent OF the bank.
The application was made last week. but
owing TO a technicality it could not be
| heard for ten days. Attorney F. c. Lusk
OF Chico, who is Rideout's adviser in the
| case, was served with the notice as at
! torney.
1t appears that he is only counsellor in
| the case and as such could not be aware
OF the proposed application in his capacity
as attorney. In his address before Judge
Prewett Attorney Brakeman said:
II call upon you TO protect the bond
holders from any further loss. The Bank
OF California has been in possession of the
mine since 1888 and this is the first time
we have ever asked for receiver. We DO
so now believing that the situation i'm
peratiyely demands it. The fumes of the
mine have all been ripped out, many of the
''chiefs" sold and now Attorney c. w.
Cross suddenly, and in his own name,
Jumps" one of the most valuable assets
we have been fighting for. He does not
say whether it is for the benefit OF all par
ties concerned and his silence is ominous,
Unjust say. In many ways the mine has
been despoiled OF its assets and we ask that
you take it into your own care pending this
litigation"