Arizona republican., 1897-10-12
D.. 1892. {aid Warner or

Industrial M1nlE1S and Gudrdnty company, the exhct nature and pur- pose for which this company was or ganized does 4to appear, except as disclosed by it's charter, and the man. ner in which fit dealt with this prop erty and thd other defendants here in. To thi9 corporation. said Cow land did, shortly after it's organiza- tion, make, execute and deliver a deed for /all the mines and mining properties described in said deed of said La1vler and Wells. and which also c3mtained the usual covenants of titld and warranty, and in which the consideration named was Four Hundfed Thousand dollars.
 Thiat immediately thereafter said Ind dpstrial Mining and Guaranty com paRy went into possession of all the said mines, mining properties and ap- performances and continued in the open, notorious and exclusive pos jsessicn thereof, using, occupying, working and operating the same un- til on or about the first day of Octo- Der, 1892.
 That on or about the ninth day of August, 1892, said Warmer organized or caused to be organized, under the laws of the state of New Jersey a corporation known as the Seven Stars Gold Mining company, with a capital stock of Three Million dollars, divid- ed into six hundred thousand shares at five dollars each, and that shortly thereafter said Warmer and his assoc iates caused the said Industrial com pany and said Seven Stars company to enter into an arrangement where by the former agreed ito convey the aforesaid mines and mining properties and appurtenanceS to the latter free and clear of any and all incumb- rances, upon the condition: that said Seven Stars company should provide itself with Two Hundred Thousand dollars working capital, and in addi- tion thereto, pay to said Industrial company the sum of Two Million Eight Hundred Thousand dollars, either in cash, or in it's stock at the face value thereof This arrange ment was never carried out, but some time about the first of October, 1892, said Industrial company delivered to said Seven Stars company the pos session of all the mines and mining properties heretofore referred to and described in said deed and contract of May 12th, 1892. That thereupon, said Seven Stars company entered in- to possession of all and singular the said mines and mining properties, and all the appurtenamces thereto; and thereafter remained in such pos session and used and occupied the same and worked the said mines and the mill situated thereon and expend- oI low r-11, nf fy, ,o11f for new and additional machinery and appliances, for use and necessary for use in the operation thereof, and in the payment for labor and SUD- plies necessary in the use, operation and development of said mines con- templated and provided for in said agreement of May 12th, 1892. And said Seven Stars company continued so to do with the full knowledge, ac- ouiesence and consent of said Lawle1 and Wells until dispossessed by said Lawler in the manner and under the circumstances and conditions here l matter set out.
 | SEVENTH.
 That at or about the time Of the 1 organization of said Seven Stars i company, said Warmer and his assoc iates other than the plaintiffs here 1 in, undertook the preparation of ar elaborate prospectus of said Sever Stars company, which it was his in tention to extensively circulate by mail and otherwise, throughout tht United States of America, and one O.
 similar mature and import for circu
 lation throughout Great Britain, an( still another which had been trans1at
 ed into the French language, whicf
 it was his intention to use in tha
 country as were the ones for use il
 America and Great Britain, for tn,
 purpose of inducing the public tt purchase or subscribe for shares il this company; and during the month.
 of September and October, 1892,
 vast number of these prospectuses
 together with a map showing the rel
 ative location of the various mine
 and mining properties above referred
 to, as we'll as the location and exten
 of the ore veins and the amount o
 development work already dom
 thereon, were circulated throughou
 the United States amounting in tn
 eseeaggregate to over two hundre,
 thousand, and in Great Britain to up
 wards of eighty thousand; whethe
 the French prospectus was ever sen
 out or any of them, the evidence fail
 to disclose.
 EIGHTH.
 This prospectus contained, amon'
 other things, the statement that sai,
 Seven Stars company was organize for the purpose of acquiring on Oc ) tober. 1st, 1892, as a going concern the mines and mining prODe1TtieS an appurtenhmces fully described an
 set out therein, and without furthe expense to the stockholders of sai , company; it also contained assertion l in regard to the title, reciting tha , certain of the properties describe in the prospectus and the accompany ing map were held under Unite l States patents, also that said com
 pany, or said property, was provide
 in a very extensive manner with nee l essany buildings, such as compan
 trading store, offices, blacksmith an = ,tr,, eI,, ro6I io