The Philipsburg mail., 1899-03-03

the attachment suits were made, Pres.
ident Durfee had to be placated. 1t
would not do to 60 to trial with the
cases. because it would expose the
workings of the syndicate. SO the
screws we're put upon the president by
his own assignee and the president Of
the bank to which he was heavily in.
debted, and he was brought to terms.
A Mr.. Franklin A. Smith of Chi
cago now takes hand in the business.
He saw chance to make money out OF
the property if he could get possession
Of it. He visited Mr.. Durfee and told
him that if an arrangement could be
made by which he could get control Of
the mine and mill and the right to
work the failing dump that he would
erect cyanide plant and pay Durfee
out of debt to the banks. He wanted,
the assignee (265, 600 shares) for which
he agreed to pay ten cents a share.
Mr.. Durfee sought Mr.. Harper and
Mr.. Mcdonald, but found that no such
arrangements would be made unless
Durfee withdrew his opposition to the
suits entered by Mrs. Harper and
others. but agreed that if such with
drawal was made and judgments con-
fessed. that the contract desired by
Smith would be given.
In pursuance of an intention to set
tie these matters in the interest Of all
| concerned, meeting of the trustees
was held at DrummOnd, in the Wind
sor hotel in November, 1897, there
being present upon the occasion Presi
dent f. M. Durfee, Secretary D. M.
Durfee, Joseph H. Harper trustee and
assignee. and A. A. Mcdonald. 1t
was here noted upon the minutes of
that meeting that the President should
confess Judgment in the cases then in
court. and that all debts created by the
syndicate should be assessed against
the company and be a lawful lien upon
its property. It was also noted on the
minutes that Messrs. F. Nj. Durfee,
Harper and Mcdonald should act as a
committee to enter into contract
with some one to operate the Sunrise
property. This committee at once
made the desired arrangements with
Mr.. Smith, and Mr. Durfee was led to
believe that he was in fair way to
get out of debt and again get his COM
pany upon profitable basis. Nearly
three quarters of the stock in the com.
pany was escrowed to Mr.. Smith and,
apparently, everything was moving
along nicely. No one knew anything
about the matter except those inter
ested.
But while Smith got the contract
and option, upon investigation he
found himself in a strange predica-
ment. He found that the Protection
lode, upon which was situated the i'm
mense failing deposit of the company,
hs, been located by one William
Campbell, at that time a sheriff S
watchman in charge of the property,
it being alleged by the locator that the
ground was not represented in 1896.
It appears that in 1895 Mr.. Sherman,
as manager of the company, made ap-
plicatlon for a patent for the Pine and
Protection lodes and the same went
into publication. In due time re-
ceiver's receipt was issued by the
President Durfee that the patent
would surely follow In the meantime,
the department ascertaining that the
Protection was in conflict with an ad-
itining claim, rescinded it's previous
action and notified the company that
if the area in conflict was not adjusted
that a patent for the Pine would be
issued and the Protection dropped from
the application. This was not brought
to the attention Of the president The
, ground was not represented in 1896,
, and therefore was properly subject to
location at the time Campbell entered
upon it. AS the claim was surveyed
by Mr.. Harper, he was advised OF its
status and had knowledge of how
matters stood This location of Camp
, bells was properly made out and duly
sworn to before Fred W. Sherman. no.
) tary public, also manager and trustee
/ Mr. Smith at once demanded the
3 conveyance of this property to the
) company, stating that if it was not
5 done he would enter suit agains
/ Harper and others for violation OF
contract. No attention was paid tt
? his demand. Nothing was done al
Sunrise, and on the I'd of July, 1898
, the date upon which Smiths option
: expired, the property was sold under
2 an execution and purchased by William
/ Thompson of Butte for the sum o.
3 $l2, 500. On the same day of sale VIM
0 Campbell and Lizzie Sherman. wife OF
. Fred w. Sherman, manager and trus
4 tee, decided back to the company th'
g Protection claim.
3 OF all of the impudent and auda
f cious acts ever perpetrated by an office
: of company charged with the custod.
k of valuable trust, there is none upoi
D record to equal this.
: On the 29th of November last, ther
g was an assignee's sale of the interest
k of Durfee and Sherman in the stock o
, the Sunrise company and the variou
/ property interests of F. M. Durfee-
Q about the only thing left to the latte
}, gentleman being his homestead nea
g town. At this sale were present Jos
J. H. Harper. the assignee E. B. How
: ell, attorney for the assignee; A. A
:. Mcdonald, president of the M. and M
II bank; Franklin A. Smith, the Chica
j. go capitalist; Attorney W. E. Moore
}. and Under Sheriff Gallagher. MI
% Moore inquired Of the assignee If h
u intended to sell and deliver the entir
If 265, 900 shares of stock. and he state
h that he did. His reason for maxim
!, this inquiry was this: He had bee
g instructed to make bid upon eithe
s. block of stock-that of the 1873. GO
n shares held by the assignee, or tn
Lx-< ko hou hnt