Daily inter mountain. [volume] (Butte, Mont.) 1881-1901, 1900-02-09
CLAIM
FOR SERVICES
Alleged That He Acted on His
Own Behalf.
THE NIXON BANKRUPTCY
Motion for Increase of the Bond Of
Custodian of Property is
Granted.
THE NIXON BANKRUPTCY

An echo of the financial troubles which
involved the old Butte & Boston company
a few years ago was heard in the United
States court today when the matter of the
Globe National bank VS.. the Butte & Bos-
ton was called up on exceptions to the re-
port of the master-in-chancery in the
matter of the claim Of Henry A. Root for
SIS, 900 for services alleged to have been
performed.
Early in January 1896, the old Butte &
Boston company was largely indebted to
eastern creditors. Mr.. Root who was in
| terested in the Davis estate litigation and
who IS very well known here, claims that
]. A. Coram one Of the directors, after q
consultation with A. s. Bigelow, then
president Of the corporation, telegraphed
him to come to Montana for the purpose
of assisting in the negotiation Of a loan to
tide the company over it's troubles. Mr..
Root closed up a deal whereby the First
National bank agreed to discount some
800, 600 worth Of drafts, and give new
drafts Of $1,000 each month. A deal was
also effected by which the Butte & Boston
smelter was to be employed in treating
an enormous quantity Of tailings from the
old Boston & Montana smelter. It was
expected that the profits from the work.
ing Of the tailings would be sufficient to
p~y ~ OAAtA ~ ~AV,VVO LUZ luC
scheme proved a failure and the deal was
not perfected.
The Butte & Boston company commended
that Mr.. Coram had no authority what
ever to engage the services Of Mr.. Root
and that he performed no services for the
company. Attorney Evans who appeared
I for the mpan today stated that Root
was acting on his own behalf. He held
an interest in the Davis estate, and the
estate owned co. 900 shares Of the Butte &
Boston company. This stock was 50 tied
up that no disposition could be made Of
the property. Mr.. Bigelow requested Mr..
Coram to come to Montana and endeavor
to persuade the Davis estate to put up its
proportion of money to tide over the diff
fculties then confronting the company.
Mr.. COram, knowing that Root was in
terested in the estate, besought the lat
ter to use his influence in effecting an UNI
Outstanding with the other stockholders.
MI. Root was represented by Attorney
Clayberg. The judge took the matter I'M
der advisenent. 4
The badly tangled bankruptcy case OF
the Nixons and the Silver City Mercantile
Co., was brought to the attention Of Judge
Knowles this morning when Attorney
Kirk, representing Mrs. Fanny Lott and
Attorney Maury representing L. w. Nix
on filed two motions to have increased
the bond of the custodian of the goods
taken possession of by Deputy U. s. Mar
shall Meiklejohn last week. Mr.. Kirk
stated that the stock of S. w. Nixon at
Centerville and East Park street stores
was valued at $4,000, while Mr.. Maury
stated that the stock of W. Nixon at
South Butte was valued at $40, 900. The
bono of the custodian or rather the credi-
tors was only $1,000. The attorneys con-
tended that the bond should be increased
to $4,000. Attorneys Carroll, Sanders and
Clinton representing the creditors warm
ly contested the motion, claiming that
there was no authority for an application
of the kind.
Judge movies ordered that the bond be
Increased $4,000, making ST. 900 in all and
gave the parties two weeks in which ia
file it.