Arizona republican., 1899-09-23

was tC be contributed by the stock
holders to the treasury. When de-
livered to Costello 10000 shares were
to be applied to the discharge Of the
Indebtedness, and $1,000 to the pur-
chase Of machinery and the improve
ment of the property. The surplus, if
any, alter the payment Of the indebt-
edness, was to be returned to the treas
ury. 1t is stated in the complaint that
Gresne and Mitchell were present at
this meeting and were active particI-
pants in the agreement.
1t is stated that at the same tim
Greene, who owned another mine in
| Sonora, the Elisa, offered to SILL i ID
I the company for $1,000,000 in four
equal annual payments, the last enc
to fall due in five years from the date
Of sale. The directors thel. contracted
with Greene fer the Elisa, basing the
acceptance upon the condition that
Costello should ,Icquire a controlling
; Interest in the company. Certain
/ stockholders thereupGn eri5ered into
an agreemUlt wish Costello to place
! 119 coo shares at $3.50 in escrow in the
Phoenix National bank, to be taken
cut by him, one-half on October Is, and
one-fourth on November Is and the
balance on December Is. 1t is stated
that Greene and Mitchell w5re also
parties to this agreement and a copy
of the agreement is made an exhibit CT
in the complaint
4 Greene, the complaint proceeds to
say, and the fact appears in the agree
ment, did not have all the stock he in
tended to- contribute present, but
agreed to put it in escrow in fifteen
days. This contract was dated July
22nd
Costello, the complaint continues,
proceeded to carry out his part cf the
agreement and took charge of the
property. Sinca then the plaintiffs
say they believe that Mitchell and
Creme have become dissatisfied, which
| is a mild way Of putting it, for both
gentleman have publicly expressed dis
satisfaction. They refuse to recognize
Wood and Costello and claim that the
! latter's purchase Cf the first $1,000
shares Of stock was fraudulent and
Illegal 1t is alleged that the defen-
G-i-its have Joined to break up the deal
and have said that they would rather
bankrupt the company than to allow
it ~ go through.
The plaintiffs state that they have
heard that a m5eting CT the dissatisfied
cir ectors is to be held at Bisbee today
September %. for the purpose of de-
Ec5ing Costello and Wood, taking
charge Of the property and involving
the company in chCas. 1t is alleged
that this meeting has net only been
called by unauthorized persons, but
that proper notice of it has MT been
given.
The complaint goes on TO show ether
reasons why the proposed meeting
should be interfersd. with. Under the
terms of the original contract between
Greene and Mitchell, afterward trans
feTTed to th6 company and previously
alluded to. Greene was to receive
$237, SOC for his property $37, 800 pay
able on November 26 CT this y5ar. and
$4,000 on November Is Of each sue
ceeding year to and including 1903
Upon the failure of any payment, the
property was tcl revert to Greene and
all previous payments, if any, forfeited
tc him. A result .of this proposed Bis
pee meeting, it is limited, would be
the destruction of the value of the
company's stock ard the stripping it
of all its rights in the property under
the Greene-Mitchell contract.
Also reve-ting to an agreement pre-
viously referred to, the complaint al
lsges that Mi5Ihell ard Greene s5licit-
ed Costello to lean the company $4,000
to meet an overdue pay roll They
agreed to sell him 81 900 shares of
stock at $3.50 and give him an Cpt:on
On 100000 or more shares, and put him
in control Of the property, So that he
Guild investigate it and develop it for
the purpose Of asceTtaining whether
he wanted tO exercise his option. Cos
tellO advanced the $4,000 asked for,
agreed to purchase the $1,000 shares
ciid tock an option on 10000 shares,
as has already been described in an
ether form. A further result c5 the
proposed Bisbee conference. it is
cCEtelded. would BE- tie permanent
less of that $4,000 and the last of the
option.
Then follows the prayer. In the alb
S-'ace OF any ether remedy against the
disasters of 3he meeting t'oday the
court is '-lsked to restrain thu defen- /
Giants from assembling at Bisbee or
sny ether place fey the purpose of de-
posing Costello and Wood and for de-
SEATING Costello's option.
Judge STREET directed the restrain
ing order to issue upon the filing
by the plaintiffs OF a bond CT $4,000, |
and the defendants are e1jOined from |
meeting at iBisbee or elsewhere for the |
purposes alleged in the complaint I'M /
til a furthr order of the court.
Although an early movement
by the Costello people was an
nounced by The Republican yes
telday morning it was evidently |
net expected so soon, and Mr. Cos |
telbo's Telegram TO his friends en- |
Thursday: ''Close all avenues; we
will fight it to a finish was net quite /
understood The restraining order
closes all avenues for the present and |
tha Costello felix's are given a chance |
to put their clothes en-.
Mr. Ncrtcn Chase Of the law firm Of /
Lcgnn, DemCnd and Hardy OF New
York, who is in the territory reprcsenc-
ing various mining parties, also rep /
ressnts interests adverse to Costello. |
He was seen last night regarding the
injunction suit, but said NO papers |
had yet. been serYkd on him, he had |
not seen a copy the complaint and