The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1898-06-02


Nephi. Burke is suing the company
for some stock alleged to be due him
| and Mcintyre interviewed, as one OF
the defendants, with a cross complaint
i'll which he alleged more things than
one could count in a minute. Some OF
| the allegations were made so strong
that the Ajax company, by William u
! Nebeker. had him arrested for perjury
! The complaint upon which he was ar
| rt sted was a very lively document, but
now comes the company with an an
/ Swer and a cross complaint to the
cross-complaint made by Mcintyre,
| which IS equally warm in tenor and
tone. 1t is, perhaps, as lively legal
document as will be filed in court for
many days, and alleges that not only
was Mcintyre an Incompetent man. but
! he was falsifier and a crooked indl-
vidual The document is a very vol
luminous one, and covers some 80 pages
of typewriter matter.
The answer and cross-complaint OF
the company admits all the allegations
as to the statement of Incorporation,
but denies that the cross-complainant
Samuel Mcintyre, is now the owner OF
115,000 shares of the stock, as he AYERS,
and asserts that he has in his came
but lib, S9S shares, and also alleges that
of this amount 10000 are not in his
name, and that 72,000 in equity belong
to the corporation. Denies that the de-
PENDANT and Mcintyre had any contract
by which the Ajax company agreed 10
sell Mcintyre $4,000 shares of the stock,
except as hereinafter set forth. 1t
is also alleged that a certain sum OF
s., 900 was paid Mcintyre in pursuance
of certain agreements, but that at the
time of payment the company was not
advised of the Misrepresentation and
fraudulent inducements of Mcintyre,
and that the agreement to pay money
was modified by mutual agreement,
ard for valuable consideration.
The answer asserts that on or about
the 22nd day of January, 1896, IL was
agreed between Mcintyre and the min
ing company that a deferred payment
of $4,000 TO Mcintyre should be with
held until the sum of $4,000 had been
repaid to the stockholders and the pay
ment of two assessments of cents
each, the conditions being that the re-
payment of The last OF these assess
ments should be beneficial to the said
Mcintyre, and it is alleged the earn
ings since that time have not been suf-
ficient to enable the money, and there
fore the money claimed by McIntyre
is not yet due, and cannot become due
until the $30,000 has been paid in ac-
cordance with McIntyre's agreement.
ACKNOWLEDGMENT ALLEGED.
An allegation by Mcintyre that it was
agreed he should be elected on the
board of directors is denied, and the
company alleges that while he was
general manager of the mine he grossly
mismanaged the affairs and ran the
company in debt by the employment of
large numbers of miners for unneces-
ssry work.
Then follows a number of denials of
allegations in the complaint, after
which the crosS-complaint alleges that
Mcintyre obtained the insertion of a
clause enga ging him for general man
ager as a practical miner by false rep
reservations, and charges him with
managing the mine in manner detr1-
mental to all concerned, and for his
own purposes, instead of the general
interests of his employers, and that
during his career as manager, ana part
because of his unskillfulness as man
ager, and because of his reck-essness'
it became necessary to levy two assess
ments, amounting to the sum of $780,
600. and in this behalf defendant COM
pany alleges that if Mcintyre considers
himself injured by any breach of con-
tract, he has an ample remedy at law,
and his grievances alleged in the COM
plant filed by him are made with
view to cloud the real issues between
himself and the company, and have no
place in his cross complaint. The an
swer denies that the company is insol-
vent, and has no liabilities of serious
nature, except those which are, by
agreement to be paid out of the earn
ings and profits of the mines.
The answer then sets up that the
mines of the Ajax company adjoin the
properties of the Mammoth Mining
and that they constitute q
of the same veins and ore
zones of the Mammoth company mines. /
That Mcintyre had been and was at
the time this matter arose, a stock
holder in the Mammoth, and knew OF
its great values, and the value of the
of this defendant; that the
had paid to its shareholders !
dividends amounting to more than ST. .
600. 900. and the property of the Ajax /
had also paid dividends That the !
camp is known as a dry camp and
that it was well known by McIntyre
that water could be used to great adj
vantage on low grade ores by milling |
and concentrating, and that Mcintyre
he owned a good portion of /
certain water rights and privileges in
Death Creek water, which the Mann |
roth company had beea using for a
year. That he alleged the water was |
sll owned by him, and that it was all |
The Mammoth mine had, and that the |
same was worth, by reason of this /
and other facts. the sum of between |
$4,000 and $4,000. He also asserted |
rat when piped, the said water !
would rise 100 feet higher than
he fire tank of the Mammoth |
company, that the lowest flow was so |
gallons per minute, and that there was |
not only enough to run the Ajax, but |
would be plenty to sell the town of
Mammoth and other consumers, includ-
ng the mines and mills. He also rep
resented that he was competent to
manage the mine cheaper than any
Jther person; that by reason of his
OF the veins he could do the
work better; and that as he was a
nan of large resources, he would as
list in paying up, as they matured,
certain notes. aggregating $4,000.
BOUGHT A WATER RIGHT.
Believing such to be the case, as con-
,erns the water and the ability of Nc
ntyre, the company agreed to buy the
lights of him for 1900 shares of the
itock, conditionaliy, Mcintyre agree
ng to sell water and water rights as set
,ut to the corporation for $4,000, and
o make other engagements and agree
nents as therein contained
The company AYERS that It had no
means of knowing McIntyre's repre-
were false, but that he well
Knew all the time they were untrue;
hat he made them with intent 10 de-
raud and to obtain the treasury stock
# the corporation at a nominal price,
md by so managing the mine. depress
he stock and obtain control of the
nine; also to so work the same as to
evelop other mining properties in the
-icinity IN which he expected to acquire
interests; that he did not own all of
he water rights, as he represented and
lleged, and that the water was not