Arizona republican., 1899-09-22
CoBRr 0RANDE AFFAIRS
The costello Faction OesrIne the
packs for Fight.

NJ. Cen O'Keefe. one Of the heavy
Stockholders of ths CObre Gr2nde COM
many. came up from Bisb-e yesterday
on business and returned last night.
Mr. O'Keefe presents another phase OF
The Ci9Dre Grande complication. He
sfvs that a ml5jority cf the stockh0,d-
ers are satisfied with J. H. Costello as
president Of tie company. 1t has
/ been the general unde- 3 .andtlg that
! Mr. Costello made an agreement with
certain stockholders who put stock
amounting to mere than a controlling
interest in the nine in the PhO-nix
N 0nal bank in escrow, to be taken
cut by Mr.. Costello in three install
ments upon the payment of $3.50 per
share, the par value, and Mr. Costello
took out $4,000 worth of stock and
sold it in the east for enough money
to- pay eff the Indebtedness Of the
mine, about $4,000 CT which ne had
assumed, according to agreement, and
had money enough lectc to pay for the
balance of the stock in escrow
Not only is this rumor without
foundation" said Mr. O'Keefe yester-
day, "but, the figures are wrong. 1t
is true that the controlling stock was
put in escrow. MIR. Costello took out
$4,000 worth of stock and altogether
he has row taken out 1000 shares of
stock amounting to $4,000. This was
all treasury stock and was used in
paying debts. J. Edward Addicks CT
New Jersey took out 5000 shares CT
stock after Mr.. Costello had taken out
his first ilstaHment, which cost him
$4,000. This was treasury stock also,
and the money didn't last long when
1t came to paying debts: The debts of
the company when Mr.. Costello was
made president amounted to 200,
and others which accumulated in a
short time, afforded an Easy means Of
disposing of the $92, 900, cash in the
treasury.
The original option on the mine
was held by James Shirley of Denver.
He was not ready to- buy the mine and
turned the option over to George
Mitchell with an agreement that he
should retain one-fourth CT the prop
e1ty. Mr.. Mitchell then formed the
Cobre Grande company.
when Costello was made presi-
dent, Mitchell, w. c. Green, Prof.
George A. Treadwell acd j. Edward Ad-
dicks Joined hands, but the controlling
stock of the mine was in esc1Cw and
they could not obtain a c3rner on 1t.
James Shirley who owned One-fOurth
of the mine, did not understand the
proceedings which were then going On,
and to be on the safe side served pa
pers on Mitchell. Mitchell's stock Is
the only stock whfch has ever been
garnishesd. It's in such shape that
Costello may take it cut according to
the agreement, but the money he pays
fer it must lie in the bank until the
Shirley-Mitchell matter is settled
There is liable to be litigation in this
matter and if Shirley wins the case his
interest in the mine will be protected
by the money accruing frcm the sale
CT Mitchell's stock new in escrow.
'The cause Of the whole complica-
ton was an effort On the part of the
Addicks' people, Including Mitchell
and his associates, to prevent Costello |
from redeerning the stock in esor-w.
This will undoubtedly feSl, as Costello |
man of money and he is firm in /
his intention of taking out the stock. |
[ got a telegram from him two hours I
ago, which said, Close all avenues |
We will fight them to a finish As I
long as Costello talks that way I |
don't think there Is danger Of getting
the Cobre Grande company into HUt
cation, although the Mitchell stock
may be drawn in"
Mr.. O'Keefe says things have been
systematized at the mine so it will
commence to- turn out money. I'm
have been made in the !,
smelter. The mine operators have
5aen handicapped on account Of a
scarcity of water This has prevented
he shipment Of a great quantity CT
bullion, although six cars were shipped
asst month. About 100 900 tons of ore
AVE been shipped in ths last two
months to pay running expenses.
Work commenced three days ago en-
pipe line and when it is built there
will be an abundance CT water. The
Jobre Grande has been proved to be
mine. Five shafts have reached sui
hides and large bodies of the veins
Iave been uncovered. 1t has been
hown that the zinc and lead which
re found all through the formation in
Tt alter or less quantities, will not af-
est the smelling Ct the ere. One !
edge CT zine, carrying more than fifty +
er cent valua, has been uncovered, 9,
5hich in itself is big thing.