Daily inter mountain. [volume] (Butte, Mont.) 1881-1901, 1899-07-28
POINTS OF LAW TO COME
F. A. Heinze Says He Has Expended
100000 In Development Work
In 10 Months.

~~V
several days, was taken up again on sche-
dule time this morning. 1t is probably
the most important and interesting mat
ter of the kind that has ever been be-
fore a court in this county, not because
of the amount Of money involved, but by
reason of the popularity of the points
at issue. Before adjournment yesterday
afternoon John j. Mediation, one of the
attorneys for the defense, and F. A.
Heinze testified to matters concerning the
verbal assignment of the lease and bond
Mr.. Mediation testified that Heinze and
Finlen, in the office of the former, had
come to an explicit understanding in re-
gard to the assignment of the lease and
bond. The understanding was to the eff
feet that Heinze was to take the Minnie
Healey n work it, and if he desired TO
lift the bond he could do so and pay Fin
len $54. 900 in installments of S27, 900 each.
This amount was agreed Upon because
Finlen had said he had expended it in
work on the property. but did not care
to do any more work. 1T was thought"
said the witness, that the Boston & Mon
tana was working a vein hav-
ing it's apex in Minnie Healey ground,
and it might be possible to recover dam
ages from that company and prevent the
further extraction Of ore. Finlen was
made acquainted with this fact, agreed to
remain in nominal possession of the
property until the suit was brought, and
allow it to be brought in his name, but it
was also agreed that Heinze should di-
rect the suit and have control of it: and
that any time he desired to enter into
actual control Of the property he could
do so"
Continuing. the witness spoke Of other
matters in connection with the first real
meeting Of negotiation. and then told
what Finlen said to him after return
ing from the east. He said Finlen had
told him he had concluded to not make
the transfer, as Mr.. DAILY had suggested
that he sink the shaft 300 feet deeper, and
he would put up 500, 900 for it.
Mr.. Heinze corroborated the principal
points in Mr.. McHatton's testimony.
Mr.. Heinze resumed his testimony this
morning on cross-examination. He stated
the relation that existed between the
Montana Ore Purchasing company and
himself. saying among other things that
while he was not the company he had
some influence with it. He further said
the portion of the contract embodying the
conditions of the agreement between Fin
len and himself in regard to the working
of the mine had been made, and finally
agreed upon in his office, in the Silver
Bow block.
Mr.. Heinze was asked to define the
term nominal possession" as applied
by him in regard to the operation of the
property in the name Of Finlen, and his
answer was to the effect that while he
was operating the mine it was understood
that the impression that Finlen vas OPP
Grating it was to be conveyed to inquisi-
tive persons. He explained why this
agreement had heen made. 1--WE were
having a great deal Of trouble with the
Boston & Montana and Butte & Boston,
said he, "and knowing that Mr.. Daily was
in sympathy with some of our affairs, and
that Finlen was close to him in business
matters, 1t was a natural conclusion of
ours that it would be beneficial to us to
have Finlen act as the aggressOr in the
proposed suit against the Boston & Mon
lana company. The payment of my en-
carrying out this idea"
do you consider Finlen in possession
now?" asked Mr.. Dixon.
mo. sir; and ! cannot say Just when
ceased to exercise the functional pre-
extended him, but I should say
that the conditions which we agreed to
create ceased some time about February
~ az III pcIlou Liz course or me nav
roll was changed"
The witness also spoke Of the work he
had done in the Minnie Healey and other
mines here. He had in the last IS months
he said, spent over 81, 900. 900 in the devel-
opment of properties tina had no par
ticular showing to begin with, and had
carried out fully the provisions of the
lease and bono on the Minnie Healey.
Certified copies of deeds transferring
nprt in infarocfc IN tho rro~ou@, c.a-. -
owners to F. A. Heinze and others in his
employ We're offered in evidence. but an
objection was made to them on the
ground that they did not bear revenue
as required by law. This matter
was explained by counse for the defense
stating that the documents We're only GER
titled copies of the deeds. The court
the objections. The original
deed conveying an eighth interest in the
Minnie Healey from Ellis P. Passmore to
the Johnstown Mining was then
placed in evidence. This was the inter-
est previously bought by Passmore from
John Devlin. Passmore was called upon
10 give rebuttal testimony regarding the
manner n purpose for which he pro-
cured the deed, but the defense admitted
thai which the other side desired to show
and the witness was excused.
Miles Finlen then told in rebuttal how
ne came to go to Mr.. McHatton's office or
the 21st of November. He said he had
met Mr.. Heinze in front of the Butte no.
TEL, and the latter had asked him to call
at Mr.. McHatton's office, so they could
talk over matters pertaining to the pro-
posed suit against the Boston & Montana
company. Asked what he did at
the office, the witness said he had seen
only Judge Mediation. Mr.. Mediation had
a document drawn up and asked him to
Sign 1t, but he answered that he would
BOT sign anything Of that kind without