The Seattle post-intelligencer. [volume] (Seattle, Wash. Terr. [Wash.]) 1888-1914, 1900-05-19

Senator W. A. Clarke. OF Montana, has
been temporarily defeated in his efforts 10
reorganize the United Verde Copper Com
pany. The United Copper Company, whose
immense and valuable works are located
at Jerome Ariz. was Incorporated In
New York and the affairs OF the COM
pany have been conducted under the laws
Of that state Recently Senator Clark,
who had acquired a majority of the stock.
decided to dissolve the company and re-
Incorporate II under the laws Of West Viz
ginia.
1t is said that Senator Clark also had in
view the freezing out" OF Prof. George
w Treadwell of New York, who Is
thought to have originally discovered the
mine and disclosed its remarkable rich
ness. 1t was Prof. Treadwell who brought
the proceedings in New York which were
decided adversely to Mr.. Clark.
A Los Angeles lawyer who has received
a copy of the New York decision explains
the litigation as follows:
Senator Clark owned more than two
thirds of the stock of the United Verde
Copper Company. and voted to dissolve
it, II became the duty of the directors
10 realize as much as possible for the
property, so az to pay the stockholders
as large a dividend as possible. Instead
OF doing this they organized themselves
into a purchasing company and proposed
to sell the property to themselves and
convey II TO the West Virginian corpora
ton which they had formed TO take II.
The property was advertised and sold, the
trustees buying from themselves a prop
erty which was paying dividends at the
rate Of 100000 a year for 100000. The
decision rendered in New York makes this
sac entirely void. and compels the trus-
tees to account to the plaintiff for the
full value OF the property. The defend
ants in the case. besides the United Verde
Copper Company, are its directors. Will
lam a. Clark, Charles w. Clark, James A.
Macdonald. Henry c. Atwater. James
Kitchen and Lindsey Watson.
The claim was made that a large ma
jority Of the stockholders were In favor
of the reorganization, and that Prof.
Treadwel. who had only a small part
Of the stock should not be allowed to
prevent the carrying out Of the will OF
the majority OF the stockholders, but It
appeared that this ma 1ority consisted
mainly of Senator Clark himself. and the
court held that the rights of minority
stockholder. no matter how small his hold
ings. counted for as much as the rights
OF the majority no matter how large their
holdings, when 1t became question OF
vested rights.
prof. TreadwelI had bought his stock on
the theory that ne would he protected by
the laws Of the state of New YORK, and
no majority, however pTeponderant II
might be. could deprive him of his rights.
Prof Treadwell's holdings In the COM
pany were only 100 shares out OF $4,000.
company that these 700 shares, less than
one-fourth of l per cent, were shown at
the hearing 20 be worth more than 500. 600.
Senator Clark had bought out all the
stockholders hut Treadwell, who refused
TO sell, Notwithstanding the tempting Of
feEs.
When Prof Treadwell and his associates
discovered the mine and brought It to the
notice of the public In 1873. modern meth
DDS OF mining and reducing copper were
unknown Prof Clark began 10 buy up
the stock Of the United Verde Copper
Company In 1887. Shortly after this the
rise In the price OF copper and the Inn
provements in the methods of It's reduc-
lion commenced. and the United Verde
Company began to prove fiery valuable
and 10 paw immense dividends. For a long
time IL had paid dividends at the rate Of
$500 90 per month. besides laying up an
annual surplus larger than the dividends.
IL Is the most valuable copper property
In the world and is producing over eighty
tons OF copper day, besides large values
in gold and silver. When the AmalEamat-
"a Copper Company was organized, the
promoters were very anxious 10 get hold
OF this property. but Senator Clark re-
fused to sell his holdings.
The effect OF this decision Of the court
will be that the proceedings for the reor-
genizauon Of the United Verde Copper
COMPANY and the transfer OF the assets
~ the company from the New York cor
poration to the West Virginia corporation
viii be brought 10 a standStill. The ques-
ton Of the appointment of receiver VIII
come M at a later date.