The San Francisco call. [volume] (San Francisco [Calif.]) 1895-1913, 1896-02-07
Defendants Argument in the
Hale and Norcross Min.
ing Case.
THE GRADING OF THE SAMPLES
Attorney Wood Reviews the Expert
Testimony of the Witnesses
of Plaintiff.

III tue haie 81 NorcroSS SILVER mining
case yesterday, on its second trial in De-
partment of the Superior Court, Attorney
w. 3. Wood, for the defendants, made ali
exhaustive argument on the sampling of
ores and their relative value.
1t VIII be remem bered that M. w. Fox,
stakeholder in the Hale g. Norcross Min
Ing Company. began suit against the COM
pany, charging that its directors, by means
OF fraudulent conspiracy between them
and the owners of the mills where the ore
was crushed, had defrauded and robbed
the stockholders of the mine OF over
S2,o0O,o0o. He alleged that among the
devices resorted to was tampering with the
ore after 1t left the mine, where car sam pies
had been assayed. One of the. devices re-
sorted to was the mixture of worthless rock
with hlgh-grade ores, so as to obscure their
value and at the same time increase the
quantity of material to be put through
the mills. The concealment from the
stockholders OF the average vaIue of the
ores as thus reduced; fraudulent system
OF milling by which only small portion
OF the precious metals contained in the
ores was returned to the stockholders,
and the disposition of the stolen bullion
In manner Intended conceal the theft,
were alleged.
On June II, 1892, the Superior Court
entered its decree in favor of the plaintiff
for the benefit of the corporation and
against the other defendants, Levy Eek
presldent), Hobart, Hayward, Nevada and
Mexican mills and mining companies and
others ssverally for various sums.
The defendants appealed, and the Supreme
Court found that Hayward, Hobart and
Levy had by fraudulent agreement with
Max ~ l. L.
company as charged; that they had
caused quantity.of inferior and worth
less ores to be extracted from the mine
and 10 be milled after being mixed with
ores OF higher grade; that 81 per ton
had been paid for milling said ores, which
was fraudulent, as the defendants were
entitled to only 81 so, the actual cost of
milling; and by reason of this fraud the
Hale d Norcross Company had sustained
damages In the amount of $780, 80. But
the Supreme Court remanded the case to
the Superior Court for rehearing upon the
value OF ore delivered to the mills, the
value and amount of bullion that should
have been returned therefor, and what
amount of this value delivered to the mills
was necessarily lost in the working; also
the amount of money, if any, received
from the tallings or residue of the ores.
Consequently the object of the defend
ants IN the case now being rehearsed is to
prove that the car or mine sample ASSAYS,
which are evidence against them, We're
too high and wholly unreliable to deter
mine the true value of the ores; and to
prove the battery or mill assays practically
correct, notwithstanding the figures were
in the hands OF the defendants and subject
TO whatever ''doetonng' they might elect.
Attorney Wood stated yesterday that the
plaintiff and defendants agree that the
amount of one was 81. 06S tons aud 100
nnunHS Tho ua1no of Ha+
assay was s., DE, 800, and this value should
be adopted by the court.
The percentage of moisture in this ore,
according to the testimony OF witnesses,
runs all the way from to II per cent. At
an average OF S per cent, deducting this
moisture would leave the value of battery
assay at 81, 047,276. This, Mr. Wood held,
was the only criterion by which the court
could determine the actual value OF the
ore. No faith should be put in the car
sample assays, and they should be re-
jected.
He reviewed at length the testimony of
witnesses relative TO the two different as
says ana the methods OF making each,
whether line ore, which is known to be the
richer, because mineralized rock will
crumble easily. was used, or the coarser
taken Tor the test. The testimony OF n
w. Tangermann, the expert, who said the
ore should have milled 70 or So per cent of
the eaI-Sample assays, counsel considered
unsupported by further evidence.
The court was also told that Witness
Maxweil's testimony that the Oyerman
mine returns were 60 ard 10 per cent of the
car-sample assays was not to be con-
sidered.
Assayer Prices testimony for the de-
PENDANTS was taken up and the story of
that witness persistent adherence to his
assertion that car-sample assays were
wholly worthless was repeated. Mr.. Wood
held that no evidence had been given by
which car-sampIe assays could be used as
basis Of judgm ent as only the assays
crushed and properly mixed.
He will conclude the reading of his ar
gument to-day.