The Seattle post-intelligencer. [volume] (Seattle, Wash. Terr. [Wash.]) 1888-1914, 1899-12-13
MANIPULATION Of 4 MINE.
Messrs. MoAuley and Chamber
lain Capture Evening Star.
SENSATIONAL FACTION FIGHT.
Il II Enaed W the Purshass From
Banker N. II. Cowley Of : Large
B1ock OF shares Said TO Have 1seen
sold to Him wronGfully and IT .
False Aprraisement-Ar. Drum-
Aeller's Defense Against Charges.

0OAO ~ Hbm WkUm8kWAhy AA0 - y
Raise Aprraisement-Mr Drum-
AelIer's Defense Against Charges.
special dispatch to the Post-Intelligencer.
SPOKANE Dec. 10.-Through the pur-
chase OF large block of stock from M. N.
Cowley, MesEs. George b. McAuley ana
Charles Chamberlain. Of this city. have
acquired controlling interest in the
Evening Star mine, at Roslyn, b. c. The
new management has already taken steps
to reorganixe the Evening Star company
under the laws OF British Columbia. and will
proceed At once to develop the mine on an
intelligent and extensive scale.
This deal terminates what has been q
long chapter Of, strife for mastery OF the
property between two contending factions
among the stockholders of the company,
and which has furnished to the local min
ing world d series OF sensational incidents.
1t II now nearly two years since the strug-
Gle illuminated in coup executed by the
faction headed by d. M. Drumheller,
which obtained for them absolute control
Of the mine. THIS stroke was. however, ac-
companied with charges Of most serious
nature against the yictors, who were ac-
cused Of having accomplished their ends
by methods that would not bear the hight
Of day
The Evening Star IL a Monte Cristo
mountain property. and up to the summer
OF 1897 had been developed at an expense
or about $4,000 The company was orig
inally Incorporated for Il. 0o0, 900, but 1t was
found at the time that the treasury stock
had all been sold, and there was need OF
more money. The stock was therefore In
creased to $16o0.0o0 and . Toronto syndi-
cate agreed to proceed with the develop
ment Of the mine, taking the now stock
at s cents share in return for all cash
expended. Under this arrangement they
had six months option on the whole adj
dittonal issue Of 100000 shares. This OPP
ton expired on December II, 1897, up to
which time the syndicate had paid for
10000 shares
sharp Practice.
The annual meeting OF the company for
that year should have been held on De-
ccmber a. but the Drumheller faction,
finding that they did not control enough
votes to elect directors, stayed away, thus
preventing quorum. The result was that
the faction headed by H. b. Nichols who
had been managing the mine for the To-
ronto syndicate, was unable to elect q
new board, although they could have voted
majority of the stock represented II q
meeting had been held. Therefore the old
board Of directors held over. This board
.
heller. J. N. Glover. DR.. D. @. Russell, H.
b. Nichols. s. 8. Bailey and W. e. Black
mer.
On January % following. the Drumheller
faction Of the board, consisting Of the first
four named. called q meeting OF the direct
0rs for February !. taking advantage Of
the situation, as the Nichols faction con-
tends-when Nichols was III in bed, with
Blackmer gone East and Bailey having
previously rendered his reslgnation--to Sc
cure control of the property. The charge
was made that taking advantage of these
conditions, the other directors called
meeting without sufficient notice, and then
and there proceeded to sell to M. NJ Cow
ley, president OF the Traders National
bank, all the remaining shares Of the addi-
tonal issue OF treasury stock. amounting
approximately to 100000 shares, at ~ cents
Per share. This, Mr.. Nichols and his
friends claim, was sacrifice of the prop
erty Of the company, and was done for the
express purpose OF placing the control of
the mine in the hands of the Drumheller
faction, regardless of the interests of the
small stockholders
The announcement of the transaction
was the occasion of numerous kicks by
stockholders outside OF the controlling fac
ton, and was the reigning sensation for
time In the local mining world
WINS the Stock Sacrificeds
Mr.. Nichols contended that at the time
this stock was sold to Mr.. Cowley for 2la
cents a share the Eastern syndicate had on
deposit In local bank the sum of s45oo,
which they offered for $4,000 shares of the
stock, rate of cents share. He also
stated that the stock was being quoted on
the local and Rossland mining stock ex-
changes at from 5 to cents share. Mr.
Nichols further contended that there was
no pressing need for this sacrifice sale of
stock, as the company was only In debt to
q small amount. and could easily have paid
all outstanding accounts.
u. M. Drumheller, president OF the COM
pany, upon being shown Mr.. Nichols state
ment, said:
1T Is not true that the stock was sacri-
feed. 1t is difficult to say what is the
true market value OF any mining stock
Quotations count for nothing. The brokers
prices are only for small lots, and when
big block is offered the price Is always
less. Before selling this stock to Mr.. Cow
ley, we went to number of well-known
mining men and endeavored to sell block
of the stock, but were unable to do so. IT
was only after convincing ourselves that
no better price could be secured that we
sold to Mr.. Cowley. This stock was not
treasury stock"
"Had you not an offer from an eastern
syndicate at s cents, accompanied by a ten
der OF $500 for $1,000 shares?"
1.-THE syndicate had an obtion on 100000
shares extra issue of stock at cents. They
took about 100000 shares and let the option
expire. 1t is true they wanted to renew
the option. but 1t is not true that they
had any tender OF $500. We could not
accept their proposition for an extension
of the option for the reason that the COM
pany had pressing debts, and under the
agreement with the syndicate not dollar
OF the money paid by them could be used
TO pay these bills. 1t must all go for de-
velopment purposes. That should prove