Santa Fe daily New Mexican. [volume] (Santa Fe, N.M.) 1885-1897, 1897-04-23
Suit in the New York Court of General
Sessions, Which Had It's Inception
in This City During Oc-
tOber, 1894.
HENRY W. ARMSTEAD A PRINCIPAL
He Organized Company to Work the
Placer Claims at Golden, and Taylor
AS Stakeholder Alleges That
He Bought Stock in the
Concern Under False
Representation.

| On the 14th of this month, in the New
York court of general sessions, Judge
Fitzgerald dismissed an Indictment
against one Henry H. Arm.Esad' yshich
charged him with grand larceny. The
complainant in this action was Thomas
Taylor, capitalist of Midway, Pa, who
has had dealings for some years with the
defendant, in mining property, and who
claimed that he had been swindled. The
property, over which the conteDding
parties are at war, is located in this ter
ritory, where the principals in the action
above mentioned are we'll known. The
allegations made in this indictment are
substantially similar to those contained
in the complaint in civil action brought
by Mr.. Taylor against Mr.. Armstead in
Santa Fe during October, 1894. Mayor
| Chas. Spiess acted as attorney for Taylor
In this action, the specific contention be-
| ing that Armstead had induced the com.
| plainant to purchase stock in company
owning extensive placer claims at Col
| den, upon the representation that the
company held clear title to the prop
erty. Soon after becoming interested in
| the scheme Taylor learned that the CON-
pany had no title at all, but had simply
located the claims, then organized cor
poraton and disposed of stock to the
extent of about $l,OOO,O00. The suit was
finally compromised out OF court. full
release was signed and filed, after which
Attorney Spiess had the suit dismissed.
Taylor and Armstead went east soon
after the case was compromised, and have
been heard of in Santa Fe only through
newspaper accounts of litigation in the
| New York courts from time to time.
1t was in 1884 that Mr.. Armstead first
appeared in New Mexico as a mining in
vester. At this time, in company with
several Chicago men he organized the
Golden City Placer Mining company.
Armstead's interest in the concern
amounted to $4,000 A year or 30 later
the mpany failed. Three years later
Mr.. Armstead with DR.. N. w. Kingsley OF
New York City, and others, organized the
Golden Hydraulic Mining company, TAX
ing the claims of the old concern. A
pipe line was purchased from the San
Pedro Mining company. This line
failed to supply the necessary volume
of water, the company failed to do the
necessary amount of assessment work to
hold the property, and finally succumbed.
Two years later in 1889 new locations
we're made by eight men, who ssgned to
H. s. Farley who assigned to the Rio
Grande Valley Water company, which in
turn made conveyances to the Irrigation
q Hydraulic company.
On account of statute which prohibits
corporations from holding more than
5000 acres in the territory, part of the
property was held by Lyman Brown, OF
New York, and leased to the company at
nominal rental. Armstead was the
leading spirit, and one of his circulars
calling attention to the advantages of in
vestment fell into the lands OF Mr.. Tay-
lor, who was known throughout the east
as wealthy coal operator. He wrote to
| Armstead that would he like to visit and ex-
anime the placer mines in New Mexico.
He was of course encouraged in this, and
after trip to New Mexico called upon
Mr.. Armstead in New York, expressing
the greatest satisfaction with what he
had seen. He said he would like to invest
$4,000 in the company's stock if he
could get it at rs. Armstead sold him
batch at that price.
Taylor's enthusiasm in the enterprise
continued to increase and soon after his
first purchase he put in another $4,000