The Philipsburg mail., 1899-03-03
THESUNRISE EMBR0GLI0
Some Light Thrown on the Inner Workings Of
the Past Management.
VALUABLE PROPERTY WRECKED
Many Years of Endless Litigation Re-
sponsible for the COmpany's Down
fall - Interesting Facts and
Transactions Disclosed.

LII T0C6uC ISSUE OI Liz MAIL UrleI
reference was made to the various diff
ficulties which seem to have blocked
operations of the Sunrise Mill and
Mining company. Some directors of
the company are charged with having
deliberately conspired to defraud GER
tain stockholders, and a motion has
now been filed with the clerk of the
district court asking the judge to ill.,
struct the receiver Of the Sunrise COM
pany to fully investigate the charges of
fraud. In justice to all concerned, we
have endeavored to ascertain for publi-
cation the cause of the cOmpany's un-
fortunate condition, and while we
have been in measure successful, yet
there is apparently much hidden upon
which our information is not as accur-
ate as might be desired.
In all interview with Mr.. W. E.
Moore of this city, attorney for the
Sunrise company, who is also it's Sec
retary, and consequently in position
to know all the facts in the case, a
representative of The Mail obtained
the following information
It will be remembered that in the
fall of 1897 certain actions were en-
tered against the Sunrise company by
Mrs. Helen c. Harper, wife of Joseph
H. Harper, trustee of the company,
and Mr.. Woods, the father-i law of
f. w. Sherman, also a trustee and su-
perintendent, associated with others,
and that the property was attached for
some $4,000 Hereunder. Answers
were made to the complaints by Presi-
dent Frank M. Durfee, he denying un-
der oath that the company owed any
such amount, and any amount in eX-
cess of $4,000; but that the object of
the suit was to place upon the COM
pany debts incurred by syndicate Of
Butte people who had an option on
nearly three -fourths of the stock Of the
company. and who from March to the
10Th of August, 1897, had, by the con-
nivance Of few trustees, been work
ing the property as private enter
prise under an agreement entered into
whereby they were to eXpend certain
amount of money monthly in develop
ment, and should, under such develop
ment, the mine prove Of value, they
had only to take up their option on the
stock and walk in as the practical
owners of the property. 1t was also a
condition Of this contract that during
the working Of the syndicate the inter-
est falling due to the amount OF
$2OS3. rs upon a personal Indebtedness
of President Frank M. Durfee and Su-
perintendent Fred w. Sherman. should
be paid, the date of payment to be
July II, 1897. On this date this money
was paid into the bank by Mr.. Joseph
H. Harper, one of the trustees and one
Of the syndicate. When the company
closed down in April, 1898, its actual
Indebtedness upon the books. as before
stated, diu not exceed $4,000. The
books are in evidence of that fact, all
entries ending April 1st Of that year.
The property of the corporation is Sc
cretly passed away from its stock
holders into the possession of syndi-
cate of Butte capitalists, who at once
proceed to develop, for their own per
sonal advantage, the property Of the
company, and continue in possession
until the 10th of August. of the same
stopped by attachment then asses!
upon the company all debts created
by them during their term of occu
pancy, aggregating, with costs, nearly
$4,000.
IIcSluouU DuIAOC CAoAIuCu oV uAS
time that these actions were fraudu
lent and made answer to them as being
so. He could have prevented this ha(
he so desired, but he did not for tn,
following reason: Three years agt
Mr.. Durfee was safely worth $50. 900
} He was prosperous rancher and al
owner of more than one quarter of tn
stock of the Sunrise company. At th'
| <;,roo of tho p,1rOboco 0f tho ctOok n
Robinson and others in 1895, not hav
ing the money to pay for that stool
about $40, OOO-he and Sherman (wh'
was associated with him in the pur
chase) borrowed some $40, 600 from tn
Merchants and Miners National barl
of Philipsburg and 5000 from Hoge
Brownlee & Go. of Butte. A part o
: this Indebtedness was secured by tn
\ endorsement of Mr.. Joseph H. Harper
trustee, who was on the notes to tn
amount of some $40, 600 in both banks
J When the company suspended oper
ations in 1896, Mr.. Durfee and MI
= Sherman made an assignment of a.
their stock interests, ranch land, cat
tie and city real estate, under an absC
lutte and irrevocable assignment
Mr.. Harper Mr.. Sherman, aside froI
his interest in the 800, 900 shares c
? Sunrise stock, owned in common wit
) Mr.. Durfea, had nothing to assign
!. while Durfee's holdings were valuabl
and important. At the date Of the az
signment, the assignees received fror
Messrs. Durfee and Sherman some
= thing over 1880 shares of Sunris
stock, and they also gave the assignt
=. the right to dispose Of the equity j
the 1877, 200 shares of stock which wa
in the Merchants and Miners NJ
tional bank of this place as collaters
= security for the money borrowed of
at the time Of the stock purchase, pr'
! viously referred to.
After the shutdown Of the synd