Arizona republican., 1897-10-12

pectus for said company, I am un-
 able to state; that during the time that this prospectus was in the course of
 preparation, the defendant Lawler was
 in the city of New York, wherein was situated the principal office of said
 Warmer, said Industrial company, and
 the eastern office and business and
 financial headquarters of the Seven Stars company; that said Lawler re-
 mained there five days, and while
 there spent most of his time at the office of said Warner and said con- panies which were all closely connect
 ed together, or in the company of
 Warmer and his associates; and was
 aware that this prospectus or some
 prospectus, was being prepared, which had reference to these mines and min ing properties.
 While MT. Lawler denies this, I think the preponderance of the evil
 dence clearly shows that such was
 the case, and the attendant facts and circumstances aside from such pre- ponderance, strongly corroborate this
 view. The fact is admitted that there
 was some talk at this time in regard
 to certain or original ore and smelter
 receipts, which Warner, presumably,
 and as some of the evidence shows.
 desired and requested of I1awler for the purpose of incorporating them
 into and making them a part thereof:
 these facts and circumstances all tend
 to outweigh the uncorroborated state
 menlt of Lawler.
 Furthermore, it is almost incon-
 ceivable that these parties, who, all
 the fadts show, were so full of this
 enterprise, should not have been
 anxious to make known and that Law
 Ter and Wells, who had such a very large financial interest at stake,
 should not have been anxious to know
 all that they were doing and expected to do in order to further Ithe scheme
 and ensure it's success. And it seems
 almost equally incredible that Lawler and Wells should never have com municated together in regard to what
 occurred and what inrormation was
 received by them at the time of their respective visits to New York. That a large number of these prospectuses
 were sent by express, addressed to
 defendant Lawler at the Burke hotel
 in Prescott; but whether they ever
 came into his possession or his mo-
 tice at the time or at all, I am unable
 to state; but some time early in the
 fall of 1892, he was shown a copy
 thereof in a New York paper. That a
 copy of said prospectus was also re- ceived by defendant Wells about the
 same time, but whether or not said
 Wells ever read said prospectus or
 was aware of its contents, am unable
 to state. There was also @ large num- Der of these prOspectuses sent to the
 Bank of Arizona about the same time,
 of VI h nI1 xyl1,,
 by the parties in New York, while
 others were sent afterwards, upon the
 written request of one Haze'tine, who
 acted under instructions from the
 cashier of said bank; how said cashier
 knew that said prospectus was in eX-
 istence, unless the bank had pre-
 viously received others of the same
 kind. 1 am unable to state And
 while the defendant Wells was
 heavy stOckhOlder in said bank dur ing the time, and said bank was the financial agent of both Lawler and Wells, I am unable to find whether said Lawler and Wells or either of
 them, knew eff their being sent, or saw
 them after they were sent, or ever
 had any personal knowledge of their , existence.
 TENTH.
 That during all the time from the
 18th day of May, 1892, up to and in- l cluding the first day of September, l 1893, said Bank of Arizona was the : agent and depositary Tn trust of this 7 deed and escrow agreement, and was 3 likewise for the purposes of these transactions the financial agent for : Warmer and the Industrial company and the Seven Stars company 1n Pres : colt, as we'll as the financial agent for l Lawler and Wells, and received and t paid out all moneys which were paid l to Lawler and Wells, either from the g gross receipts or ore or bullion from 3 the operation of these mines under I the Cowland agreement, as we'll as s all moneys neceived for their account 3 from any source on account of any of ], these transactions except the fifty-one = thousand dollars paid by Warmer as s hereinbefore set out; and they also l received and paid out upon check, or t otherwise, large part of all the funds f received and expended by the Indus e trial company or the Seven Stars t company in payment for material e machinery, labor, supplies and other expenditures made for and used in the l. improvement of this prop erty, and r the operation and development there t of, and in the production of ore and S bullion therefrom in accordance with and as contemplated by said agree
 ment of May 12, 1892; but I am un- g able to say from the evidence whether d Iawler and Wells, or either of them d had knowledge in regard thereto. > ELEVENTH
 1, That by the use and circulation o1 d the prospectuses, as and in the man. d ner hetreinbefore set out, a large r amount of the stock of said Seven Stars d company was sold to the plaintiffs S and other parties throughout the t United States and Great Britain, the d exact amount is immaterial for the '- purposes of any decree that will be d entered at this time but which aggre- l. gates two hundred and fifty thousand