The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1897-04-04
Litigation Growing Out of a Bond
and Lease.
R. G. SMITH BRINGS THE SUIT
ALLEGING HE WAS A VICTIM OF
FRAUD AND CONSPIRACY.
Claims to Own one-Fourth Interest
in Bond and Lease in the Prop
erty, Which Is Valued at $780,
0OO-Venires Issued From the
Federal Court For Grand and
Petit Jurors Returnable May 3.

| William Kahn, as attorney for Rob
ert G. Smith, yesterday entered suit In
the Third district court against the
Ben Hur Gold Mining company, John
p. Darling, II. H. Mears, Otto Letter,
p j. Conway, S. V. Shelp, n. A. Ken
nedy and A. Hansen, to recover a one
| fourth interest in a bond and lease on
the Ben Hur mine, in White Pine
county, New, out of which the plaintiff
alleges he was defrauded.
1t is set up in the complaint that on
Sept. l, 1886, the plaintiff and the de-
PENDANTS, John p. Darling and H. H.
MearS, entered into a co-partnerShlp
for the purpose of bonding, purchasing,
developing and selling the Ben Hur
mine. In pursuance of the agreement
plaintiff and Mears each paid Sl6O Tor
the purpose of defraying the expenses
of the undertaking, and Darling con-
tributed his time and services in going
to Nevada to see and arrange for the
bond and lease with the owners, w. ID.
Campbell and his wife. The bond and
Lease were obtained on Oct. 2, 1896, and
soon after Darling and Mears repre-
sented to the plaintiff that they had
man who was willing to put in $1,000 to
obtain an extension of the lease and
bond.
1t is then alleged that on Nov. l, 1886,
the defendants Darling and Mears un-
lawfully and fraudulently consplre1
with P. J. Conway, S. V. Shelp and otto
Letter for the purpose of defraudlng
the plaintiff out of his interest in the
bond and partnership, and in further
ance of their scheme Darling and
Mears, although able to bring about
and consummate the deal by which
Letter was to put in $1,000 to obtain an
extension Of the lease and bond, did not
do so, but falsely informed the plaintiff
that they had been unable to put the
deal through.
1t is further alleged that Darling and
Mears, with the knowledge and con-
nivance of Conway. Shelp and Letter.
saw w. D. Campbell and his wife. the |
owners of the property, and after pur-
posely allowing the first payment on
the bond to go by default and the bond |
to be forfeited. entered into an agree
ment with them for the making OK !
new bond to Otto Letter for $3.50, who |
had only one-fourth interest in the new /
bond, but held the other three-fourths
in secret trust for Darling, Mears, Shelp |
and Conway, all for the purpose OF de-
frauding this plaintiff out of his one
fourth interest in the first bond.
Then Darling, Mears, Conway, Shelp
and Letter, it is alleged, in further pur-
suance of the conspiracy against the
plaintiff, organized and incorporated the
Rem Hur Gold Mining company, with
zoo 900 shares of stock Of the par value
Of 81 each, of which $4,000 shares were
subscribed b. Letter, .99S shares by
Conway, $4,000 shares by Shelp, and
me share each by Kennedy and Han
sen, and Letter transferred his right,
title and interest in the second bond to
he corporation.
The property, it is said. is worth be-
ween 500, 900 and $500. 900, and Darling
md Mears, it is claimed. are about to
make ARRANGEMENTS with Conway and
;help for the sale and disposition OF
heir DOE, 600 shares of the stock to vari ]
JUS persons outside the state of Utah
With the intention of appropriating the
roceeds to their own use and of de-
rauding the plaintiff. {
Plaintiff prays Cor a decree of the
curt that he be entitled to a quarter s
interest in the second bond, and that
he transfer of the bond from Letter to J
he corporation. in so far as the plain I
ifs one-fourth interest is concerned, {
e declared null and void, and set aside s
nd that the said one-fourth interest {
e conveyed to the plaintiff by Letter {
nd the corporation, or that $4,000 (
fares of stock of the company be con- {
eyed to him. The plaintiff also prays c
hat a. temporary injunction issue re- 7
training the defendants from assign V
lg, transferring or issuing any stock
in the names of Darling {
Iears, Conway or Shelp, and that the Z
efendants be required to show cause t
by the injunction should not be made t
ornament