The San Francisco call. [volume] (San Francisco [Calif.]) 1895-1913, 1895-10-05
JOHN ". MACKAY IS SUED,
Made a Defendant in e.
Dorado County Mining
Litigation.
A CONSPIRACY IS CHARGED.
Joel T. Smith, John D. Bancroft
and Robert M. Green Ask Heavy
Damages.

John W. Mackay was made defendant
in 100000 mining suit, involving a valu-
able group of mines in FL Dorado County,
that was filed in the United States Circuit
Court Yesterday. No service OF the papers
in the case has been had and the complaint
has not as yet been made part of the
record of the court
The plaintiffs are Joel T. Smith, min
ing man from Montana, John D. Bancroft
and Robert M. Green, and the defendants
Edward Bind, Leonard Reg, A. Head,
John W. Mackay, John Doe and Richard
Roe.
The complaint sets forth that on May
20, 1895, Smith made an agreement with
the defendants Bind and Reg to buy a
number of mines for 100000. The proper
ties included were the Blue Gouge, Elem
ing Extension, Procop, Rocky Point, West
and Park, all in the Pleasant Valley min
ing district. A half interest in the b.
nanza mine and the water rights belonging
to the entire group were included in the
purchase. Smith was to pay $1,000 on July
5, 1895, S11 800 on August I, 1895, $500 on
September l, 1895, $4,000 on October /,
1895, $4,000 on November 1, 1895, and
900 on January 1, 1896, and to take pos
session at once, all proceeds from the
operation of the properties to be applied
to the purchase price.
1t was also stipulated that the agreement
to sell should be dependent upon bond
executed on May 6, 1895, by defendants
Reg and Bind agreeing to sell the prop
critics to plaintiff Bancroft for $50, 200,
$4,000 of which was to be paid before July
l, 1895. and $25, 600 on or before September
L, 1898. Later the original agreement was
modified to allow Smith to pay $1,000 down,
$4,000 on September l, $50, coo on December
l and $50 600 on March 1, 1896.
Then Smith took Bancroft and Green
into the deal as equal partners and a pur-
chaser for the entire group was looked for.
In the meantime verbal extension of the
time for making the payments was OBJ
tanned from Bind ana Reg.
Negotiations were opened with a num-
Der of capitalists looking for investments,
and John w. Mackay was finally APP
preached and offered the group for $3.50 600
cash. He employed experts to go over the
property, including the defendant, Head.
The complaint goes on to say that on
September Is the experts visited the claims
on which the plaintiffs had already ex-
pended a large amount of money in de-
velopments, and spent several days IN ex-
aiming them.
While there, the plaintiffs claim, the de-
PENDANTS conspired to negotiate a sale of
the mines, Ignoring those who had bonded
| them, and entered into an agreement by
which the properties were to be transferred
to Mackay, through his agents, for sum
several thousand dollars less than the price
| originally asked Mackay by the plaintiffs.
This arrangement is said to be on the
eve of contamination, and the court is
| asked to grant an injunction preventing
Reg and Bind from selling the mines to
Mackay and compelling the latter to cease
negotiations.
| The plaintiffs claim that through the &C.
| tons of the defendants in refusing 10 keep
! to the original agreement they have been
| injured in the sum of 100000 and judg-
| ment is asked for that amount.
| Defendant Mackay is said to be at the
mines, which are considered among the
most promising in Ell Dorado County.
| w. S. Scott is attorney for the plaintiffs
| and will be assisted by II. n. and R. P
| Clement as counsel.