Fergus County argus. [volume] (Lewistown, Mont.) 1886-1946, 1897-07-21
Gilt Edge Troubles.

l.. S. Woodbury., receiver for Mosh-
ner & Butts Bros. at Gilt Edge, came
in from the Falls Saturday and went
to the mine Sunday. While i'm Lew
istOwn Mr.. Woodbury. talked freely
with an ARGUS representative con-
corning the latest litigation into
which the Gilt Edge company has
become involved. Mr.. Woodbury.
says, and an examination of the
records substantiates his statements,
that Moshner & Butts secured from
William Netting a bond on the Look
out mining claim for $4,000 which
will terminate August LIST, 1897, and
that for all ore taken out Of this
mine the lessees were to pay Mr..
Netting so cents per ton, this amount
to apply on the purchase price. This
Is further reinforced by q lease Sc
cured by Mr.. Woodbury. from Mr..
Netting last February for six months,
providing for the same payments
on the ore as stated in the bond.
When Mr.. Woodbury. took hold of
the affairs as receiver MOshner &
Butts were in arrears ON these roy
~alities, but since that time all has
been paid up, the arrearages and the
current payments, the whole amount
paid amounting to $500 and that
he, as receiver for Moshner & Butts
is prepared to pay the balance OF
$500 August first, when, in accordance
with the bond, Netting must give
the deed.
The Lookout claim was located
by Netting, H. Schmitz, CT. Loosen
and H. A. Johnson, but Johnson's
claim has been assigned to Netting
and Netting claimed to have power
of attorney from Schmitz. Schmitz
now claims that the bond was illegal
out was $Sl 900, he sueing for one
fourth interest of that amount and
for an injunction restraining the re-.
ceiver from further operating the
mine. MI. Woodbury. is of the be.
lief that Schmitz has been offered q
larger amount for his interest in the
mine that he would realize from the
present bond and that he therefOrt
brings this action to annul the pro
ceedings and reclaim the property
The receiver feels that a great injus
tice has been done him, for not only
is he sued as receiver but personally
it being the desire of Schmitz to holC
Mr.. Woodbury. for such proportion
of the amount, $N,250, as exceedl
the amount of money in Mr.. Wood
bury's hands as receiver, although
he took hold of the property believ
ing the bond to be all right and Ii IN
no way responsible for the bond be
ing illegal, if 1t Is.
The mine and mill were shut dOwI
Tuesday last. but on Sunday Mr.
Woodbury. gave orders to have tn
ore then on the dump hauled to tn
mill and all cleaned up. after which
proceedings will depend upon tn
action of the court, Judge DuBos
having set the case for hearing tn
oath inst.
Tuesday the receiver paid all re
~ceiver's bills for June. He was aI
pointed receiver February 18th an
since has managed the property well
not only paying current obligation
but so per cent on all back labO
claims and contracts, and all liens
His administration has been a we
, come change from tine cOntinuOu
= mis-management of those who pr
: ceeded him and If allowed a mont
, or SO without litigation would
: he says, have paid all back claim
and put the firm of MOshner & Butt
\ Bros. on their feet Now all is vi
b. certainty. The old Gilt Edge mir
is in litigation and cannot be worke
by the receiver and II the LookOu
mine is taken from him, where OF
will be taken from to supply the mi
I is a matter of doubt.
The result Of the trial at Gres
Falls Saturday next will be closel
watched and the decision mean Il
Strengthening out or the further e.
tangling of Gilt Edge affairs.