Herald and news. [volume] (West Randolph, Vt.) 1878-1943, 1897-09-23
THE ELY MINES.
Complicated Litigation - Prominent
Vermonters INCONSISTENCIES suit
kaonu

per mines Of fragrant memory Is the
center.
Robert f. Straine of Boston, pro-
fessional promoter, has caused the ar
rest of Vice President Leonard of
the bradford bank on the charge of
SANDER. Pres. Leonard was released
Oh $40, 900 bail. The real estate of the
Bradford bank has been attached in
the sum Of So, 600 on a writ of seques-
tration granted by Judge Wheeler of
the Z. ). circuit court. In addition
10 this Judge Wheeler granted an in
junction last Thursday restraining
the Bradford bank from selling some
bonds and stock OF the United Tele-
gram company, which the bank held
as collateral in certain transactions
with Robert f. Straine.
1t appears that the Bradford bank
held mortgages on the Ely property,
and more than year ago Mr.. Leon
ard of the bank called on Mr.. Stralne,
who has long been known as "pro-
moter, land proposed a scheme to form
a company and exploit the mines
once more.
So the Ely copper mining company
was formed with a capital stock Of
81 100000 and 100000 worth of
bonds. The bank conveyed its inter-
est in the mines free and clear 10 this
company, by discharging the mort
cages, and the company gave the bank
a 2 months note for SOL 600 which
was backed by deposit Of SlO0, GOO
Of the bonds. The note was made
July %, 1896, and expired this present
year, and suit is pending on this
note.
The mine was reOponed but in a
short time il was shut down owing in
the matter Of labor some 81, 800.
Straine's counsel claim that he had !
expended some $4,000 in the mine
and in forming the company and in
other ways in work connected with
the company up to that time.
Last March, Leonard bought up the |
claim OF 5000 Of an engineer named |
Bibikoy, who had worked for the
company. Bibikoy soon after brought
suit against the company and service
was made on Mr.. Watson, the clerk OF
the Ely mining company and attor-
ney for the Bradford bank.
1t is claimed by the counsel for
Straine that Watson gave no notice of
this suit to the Boston officers Of the
company. There was no defence TO
the suit, and Bibikoy got judgment
and attachad the property of the COM
pany.
lie next petitioncd the company in
to insolvency on April Is, and no no
tice of this petition was sent TO Boston
by either the presidents, ex- Gov Farm
ham or Clerk Waston. Farnham APP
peared before the Vermont insolvency
court and said the company might be
discharged as insolvent.
On the 4th of last May Representa-
tives of Robert f. Snaine went to at
tend the annual meeting of the min
ing company. Ex-Goy. Farnham re
fused to preside at the meeting, say
ing that stockholders had no right to
elect officers when the company was
insOlvent But officers Were elected
in spite of protest. Messrs. Davis &
who went up from Bos-
ton at the time, took with them the
stock ledger book and a copy of the
record book, both of which were forci-
bly, seized by sheriff under warrant !
from the court of insolvency.
Then were started other suits /
against Straine tying up all of his c
,.n,,nrt,- l., tha pco1fn kaply orI q
he effect of all these suits, was il is
claimed by counsel for Straine, to de- I
,troy the market value of the Ely min I
ng company bonds; and they further !
lain that Leonard violated his agree /
nent 10 do everything in his power to !
lelp the sale of bonds.
Straine took steps to have the in :
olvency proceedings vacated on the d
ground of conspiracy, and this matter q
zones up for trial Sept. u. !
AS soon as the note for S5l 600 D
which the bank held against the cou- I
,any fell due last July the bank :
'rought suit against the company for =
he recovery of the amount. That suit :
5 still pending. In August the bank
lotilied Mr. Straine that his private d
ollateral-which he had put up 10
btain the money he claims 20 begin !
york on the would be fore
losed. This collateral consisted large
J of United Telegram company bonds
nd stocks.
To make long story short, Robert
:. Straine got sick of the manner in A
yhich he was being used, his counsel "a
laims, and they brought bill in
guilty last Thursday through the
Tnited States circuit court and Judge
Wheeler restrained the sale of the
ollateral which was to have taken z
lace Saturday. AT the same time "
ne Judge gave the writ of sequestra-
on attaching the real estate of the
ank for SOL, 900. 4
Pres. Leonard was arrested on y
nit brought by Straine. 1t is said T
nat other arrests are likely to be
lade. II
Travellers are frequently troubled with \