The border vidette. (Nogales, Ariz.) 1894-1934, 1899-09-30
CO3RE GRANDE IN COURT.
Green and HIS Friends Try to Down
Costello. History of the Deal.

trict court in Phoenix in favor of Presi-
dent J. K. Costello of the Cobre Grande
mining company to refrain W. G.
Greene, George Mitchell and others
from holding a directors meeting and
deposing petitioners from Office, the
meeting was held at Bisbee last Satur-
day. At this meeting w. G. Greene
was elected president; George Mitchell,
general manager in place of Con
O'Keefe; Sheriff Scott White of Cochise
county, secretary. The directory in
cludes these officers, Prof. George A.
Treadwell and other friends of Greene
aud Mitchell Ex-senator Norton
Chase of New York and Jerry Millay OF
Phoenix, were present at the meeting.
In the app location for the preliminary
injunction by Mr.. Costello, he cites
certain details respecting his deal with
Messrs. Greene and Mitchell that are
interesting to the mining world:
The organization of the Cobre Grande
company was completed early this year
with J. H. Costello, president; George
A Treadwell. vice president; J. Henry
Wood, secretary and treasurer. Direc-
tors-the above named and w. C.
Greene and George Mitchell. In July
of this year the company had incurred
an indebtedness of $38, 447.2S. AT a
meeting of the directors held in Poe
nix it was agreed to sell Costello 81 900
shares of stock at 81. so per share; tie
stock to be contributed by the stock
. holders to the treasury; 10000 shares to
be applied to the discharge OF the in
debtedness, and Is, 900 to the purchase
of machinery and the Improvement of
the property. Greene and Mitchell
were present at this meeting and were
active participants in the agreement.
1t is stated that at the same time
Greene, who had another mine in Sono-
ra, the Elisa, offered to sell it to the
company for 800, coo in four equal
due in fiye years from the date of sale.
The directors then contracted with
Greene for the Elisa, basing tn: accept
ance upon the condition that Costello
should acquire a controlling interest in
the company. Certain stockholders
thereupon entered into an agreement
with Costello to place l19, 600 shares at
30. so in escrow in the Phoenix National
bank, to oe taken out by him, one-half
on October Is and one-fourth Novem-
ber Is and balance on December Is.
1t is stated that Greene and Mitchell
were also parties to this agreement and
a copy of the agreement is made an ex-
hibit in the complaint.
Costello, the complaint continues, pro-
ceeded to carry out his part of the
agreement and took part of the proper
ty. Since then the plaintiffs say they
believe that Mitchell and Green have
become dissatisfied for both gentlemen
have publicly expressed dissatisfaction.
They refuse to recognize Wood and
Costello and claim that the latter's
purchase of the first 1000 shares of
stock was fraudul and illegal. 1t is
alleged that the defendants have joined
to break mp the deal and have said that
they would ratber bankrupt the COM
pany than to allow it to so through.
Greene was to receive 1921. 500 for his
property, S37, 500 payable on November
26 of this year, and $4,000 on Novem-
Der 90 of each succeeding year to and
including 1903. Upon the failure of
any payment, the property was to re-
vert to Greene and all previous pay
ments, if any, forfeited to him. A re-
suit of this proposed Bisbee meeting,
it is limited, would be the destruction
of the value of the company's stock and
and the stripping it Of all its rights in
the property under tho Greene Mitchell
contract
Also reverting to an agreement pro-
viously referred to, tho complaint al
leges that Mitchell and Greene solicited
Costello to loan the company $4,000 to
to meet an overdue payroll
According to the Phoenix Herald
Prof. Treadwell is authority for the
statement that d mining company has
just been organized which will control
the entire interests of W. @. Green in
the Cananea mining district of Sonora.
Mr.. Green has turned over LOO per-
tenencias to what will in the future be
known as the Green Consolidated Min
ing company. He retains the control
ling 2terest in the company.
These claims are in the vicinity of
the Cobre Grande mine. The new COM
pany has been capitalized at $4,000, 900
and half million dollars has been
paid in to start the development of the
claims. The copper deposit is of such
character in the Cananea mountain
that there is value in tho outcropplngs
and the surface of the zone carries min
eral enough to keep a smelter running
for long time without sinking on the !