The Seattle post-intelligencer. [volume] (Seattle, Wash. Terr. [Wash.]) 1888-1914, 1895-11-28
qgEY ENJ0N SYKES.
.usriean Mining Stockholders
After the En%glishman.
w..r NO PREFERRED STOCK.
.,,.0uarnfsh and Sultan Property Gets
rrso Lstfgation-Sotary Contempt
Case to Be a Test.

- II Morrison and James Shse-
--.~t%Ttay obtained frcm Judge Lang
s,nporzry restraining order TO pre-
- .s4 etIIsggam ish and Sultan Mining
-~na.w from issuing preferred stock.
- s@wsnutug che OF the most important
- safflez ever fought IN the courts OF
80 SUMNER % 1852 James sheehan. OF
- 49,. through friends IN ST Paul. IN
80 Al English syndicate to examine a
- Of mining claims f. Snohonish
- zffh a giew &c advancing tirs capt.
@.sn~arv FOR their development These
-. vhgch.ars regarded as among the
..fwable In the state. comprise the
-. chief. gfeptoe, Silver Peak, Silver
- Mamie. Tenderfo0t. HoodO0. Nor
! tale View. Peacock. AIarysviile and
-. jefferson. which Afessrs. Sheehan
i ferrssoH had purchased from George
ne--oe. Fred Harrington. James Bed
.-~hgbald Williams and others. who
- .osatsd them, but who were unable %
$50 funds necessary for their deyeI-
ssmsri
.--.Asafer. England and +. 2. Groat, OF
!. p.ni general immigration agent OF the
s.<,h.rr Pacific. came 10 Seattle and
- "a ~saohomish county. where they
- thorough investigation Of ths
-.rns-sv. On their return 20 this city, 70
.rssea. they entered into a. agreement
- ~ gheehan and his associates 10 ad-
- 4.69 for the development Of the
~~s.rty. IN return for which they were 10
- ~ themselves absolutely 80 per cent.
80 ean,taI stock OF & company TO be
mmnsssd. while another ~ per cent. was
- rvan to them al an equivalent for
z = a. aFafrs~aH that EhaGENr and
s..zaesates were 10 have - per cent. OF
49, fs.lv maid I'D az their price for con-
..-s~ The Mines 20 the new corporation.
szsk~hsr II. 1899, Sheehan and his assoc
ss.sx an one side entered into a written
.~ssrsrt with Sykes and Groat on the
go arganizlng the St5llaguamish and
s-tsn Mining Company, with a capital
,.sk os 100000. Of which Sykes was TO
Ave ! legal title 20 sl.450.g0. Groat $50
e. sasshan $4,000, and Morrison $500 600.
sxkss was the head Of the English syndi-
"a xnt-s was 20 furnish the capital and
~ holdings we're supposed to represent
al os ths English investors. He has AL
,sasy pa, ss0.os into the development OF
tas little Chief, which IS considered the
hest Of the group, apd which from rs out
aide Indications is a oiid mountain of
copper ore.
n = NaHEFt tlAA tAAA10Ef - FEEAtkNttAAN
A. lands and toxnsites in iowa and North
rnSota which have turned out badly, he
las become embarrassed financially. and
las failed % keep his agreement with the
American end OF the corporation. Last
,9umsr. II Is claimed, he defaulted In his
advances for the Development Of the MN
hg properties, and proposed and insisted
upon the issue OF preferred stock TO the
sm-.nt OF 80 shares, 10 be delivered to
hin. and which he said would enable him
IA ra.ss the money for further develop
msat He also insisted that this stock
saeaia be made preferential. both in re-
safa % interest and principal and IN the
tgsz. u liquidation Of the company and
entnbaisa o. assets. his preferred stock
trisug.sn o. assets, this preferred stock
vas q receive al Interest due and accrued,
sB4 81 principal al the price Of Issue. in
rrsoriy 70 the ordinary shares Of the COM
pay. sheehan and his associates opposed
Is proposition and protested against the
aaaaee o. any preferrent stock. on No
smeer Is, 1855, a special meeting OF
sesaolders was held to pass upon Mr..
sizes proposition, n the proxy votes
faa England. which Sykes had secured.
MiaHmhered the votes OF the American
nd q the deal. and the proposition was
fsrgtsd. II - said % have then been dis
ssYsrei that Mr.. Groat had transferred
hs stock 20 Mr. Sykes.
FEARING that such an issue Of stock
rsaa destroy the value OF the common
t'ek held BY them. and allow them 70 he
ffassn oat without a dollar from the prop
.'y they had conveyed - the company.
fatsaaa and Morrison. representing the
american stockholders. Instituted a suit
y restrain the company from issuing any
Preferred stock. Yesterday they filed their
complaint setting forth their grievances
AGAINST Sykes for tho violation Of his
Agreement. and asking for a restraining
sEaes against the company 20 prevent the
ssaance OF preferred stock. From the
enpaint It would appear that sykes is
te PARTY against whom the complaint IS
Nssisd, Sykes. q Is alleged. Is ins0lyent
aa nt responsible IN damages. and he
Fsfs'ns who ara now acting as the trus-
- q The company are his nominees and
salfeiy subject 70 his dIctat,on and con-
Wy and have not considered the inter
- % the American stockholders. Judge
iAsley granted a restraining order. re-
.fn&ole December G. and fixed a bond Of
- which Mr., Sheehan furnished. with
-
ne Haiaes % the company are very well
- % pTospectors and mining men gem
saly. aad the Little Chief and Hoo-doo
.sfe een regarded as great properties.
- would have gone we'll. ( IS claimed,
- SYKES not become j|nsolvent. and Il Is
~ ! Hsht between the original owners
. re ml2es and the English syndicate,
'IfesenSSi by Sykes.
ArA van ID