The San Francisco call., 1896-03-28

involved the possession of the famous
Spring Valley mine at Cherokee Flat. He
has decided in favor of the bondholders
and against the Bank of California and
Rideout & Smith. He orders the fore
closure of the bonds, representing $685.
in principal, with $4,000 of interest that
has accumulated since the suit was begun
eight years ago, and directs that Receiver
Whitcomb, who is in charge of the prop
erty, shall proceed to advertise the sale of
the mine in accordance with the foreclos-
ure proceedings.
In the opinion filed to-day Judge Prev
lit holds that the defendants are estopped
from questioning the validity of the mort
gage; that the plaintiffs are entitled to
have and recover a judgment against the
defendants, the Spring Valley Gold Com
pany, for the sum of $151, 900 principal and
$129, 759 33 interest due to February 1, 1896,
and interest on said principal sum from
February 1, 1896, until judgment; that the
property rights ana easements are subject
to the lien of the mortgage; that the plain
tiffs are entitled to a judgment and decree
of sale of the mortgaged property, rights
and easements according to law and to
sale and of the receiver, both before and
after judgment, and the compensation of
themselves and their attorney and to the
payment of the principal and interest due
on the mortgaged debt; that the defend
ants and intervenors and all persons
claiming or to claim under them subse-
quent to the execution of the mortgage be
barred and foreclosed of all right, claim or
equity of red emption; that the Spring
Valley Gold Company pay any deficiency
which may remain after applying all the
proceeds of the sale of the mortgaged
premises; that the plaintiffs are entitled
to an order continuing in Office the re-
ceiver: that his bond be fixed at $10,0 ,0G0,
and that it be executed to the State of
California. with at least two sufficient
sureties; that his powers continue the
same as heretofore; that he be authorized
and directed to sell the mortgaged pop
erty in the manner provided by law; that
the plaintiffs submit to the court at least
once each year detailed statement under
oath showing the disposition made by
them of the tiust funds received under
these findings, and that they do not re-
move from the jurisdiction of this court
any fund or funds held by them in trust,
and that all payment of bonds be only
upon the actual surrender of them and
physical cancellation of the bonds and
coupons at point within this State, un-
less upon supplemental motion or petition
the court shall otherwise order.
The litigation over the well-known
Cherokee mine. which has produced ov er
$13.0000 900 in gold, has been going on for
more than eight years and has become
one of the notable mining suits In the
State. A number of prominent attorneys
in San Francisco and Butte County, where
the property is located. have been con-
nected with the case. The counsel for the
bondholders has been T. q. Brakeman of
San Francisco. Arrayed on the size of
the two banks has been G. W. Cross, ]. M.
Allen, F. c. Lusk of Chico and Major A.
F. Jones of Oroville. The decision is
decisive victory for Attorney Brakeman,
who alone has fought the case from the
start. Every possible point has been Bit
terly contested by both sides.
The principal holders of the bonds are