Daily inter mountain. [volume] (Butte, Mont.) 1881-1901, 1900-04-10
Hearing in the Case Commenced
Today.
STOCKHOLDERS AT WAR
Plaintiffs Refuse to Pay an Assess
ment-Fraud is Alleged
Big Salaries.

The trouble between the minor and
major holders of stock in the COmbina-
ton Mining & Milling company, the
property of which is situated in Granite
county, had another inning in Judge
Clancy's court today, the point at issue
pointed to take charge of the business
affairs of the corporation.
The plaintiffs in the action are William
Thompson, eX-mayor of Butte; Henry
Williams. general manager for the Colo
RADIO Mining 4 Smelling company. O.. j.
Mcconnell, general manager for the
Western Lumber company, and others
whose holdings in the Combination are Of
sufficient Importance to warrant them in
keeping track of the affairs of the COR
poration and acting accordingly.
The Combination was once prosperous,
but when the drop in the price of silver
occurred a few years g it's stamps were
hung up and the merry jingle of the pick
and drill in it's mines ceased. Since then
it has been drifting behind in it's financial
affairs and at periods has levied assess
ments on the stock to meet the demands
upon it. The plaintiffs in the action now
in the courts refused to pay the amounts
, charged against their stock and secured
an order of the court preventing the sale
! of the stock as delinquent. h action
was based upon allegations that the ex-
pense account charged against the COM
pany was made up principally Of expendi-
lures that had been fraudulently con-
tracted. The principal office of the COM
MAJ w wa Ori oi n q 11y 1naotnI in Nfnytoro
but it was transferred to St. Louis, in
which city all of the officers and heavy
stockholders reside. By n by the Mon
ana stockholders compelled the return
of the books to Montana.
Among other items charged against the
company was an SIS, 1862. IA indebtedness to
the State National bank of st. Louis. The
plaintiffs claimed that this Indebtedness
grew out Of the large salaries drawn by
the officers, together with sums charged
to the expense account which by tights
had no business there and which had been
contracted and entered solely for the pur-
pose of necessitating the levy of assess
ments in furtherance of a scheme on the
part of the st. Louis men to freeze out
the Montana men. On account of this
alleged Indebtedness to the bank the
property of the company is now in the
hands of the United States marshal for
Montana. The plaintiffs allege that even
this is a part of the freeze-out play, the
object being to enforce the sale of the
property to satisfy the execution levied
in favor of the St. Louis bank and thus
throw them out and place their opponents
in full control and ownership by purchase
at public sale.
A short time ago the defendants, and
especially Jesse B. Meller, secretary Of
the company, was ordered to produce the
books in court for inspection. but when
the question of appointing a receiver was
called in court to-day, Judge E.. N. Har-
wood for the plaintiffs asked Mr.. Meller
the following question::
What effort did you make to get those
books. n bring them into court in re-
Spouse to the courts order?"
Il made no effort"
DO you know what marshal took
charge of the books?"
Il do not. l might know him by
sight"
Mr.. Meller further said that the mar
shall had taken charge of the books about
ton for inspection. He did not know, he
said. who had furnished the marshal with
a list of the property attached.
Lyman NJ. Harley testified that he had
examined the books of the company and
found that certain charges had been
residing in st. Louis. The books also
showed an Indebtedness of $1S. 1924 and
cash amounting to 81, 273.96 on hand. Be-
tween October Of 1898. and December OF
1899, a period of fourteen months, the in
debtedness had been increased $14,1 2S. 50.
The books showed. he said. that while the
office Of the company was in st. Louis,
Charles d. Mcclure as president. had
drawn a salary of 81, Bats and $75 as
travelling expenses for having attended Il
stockholders meeting in Montana. He
had also drawn $500 as an attorneys fee.
AS acting president and treasurer Paul
A. Fusz had been paid $1.O3S. Is and Mr..
Mcclure had drawn his salary as presi-
dent at the same time. Mr.. Fusz had
also drawn $500 as an attorneys fee and
1920 with which to defray the expense
of a trip to Montana as a director in 1896.
Nose Rumsey had drawn 81, O1O.2 90 as
treasurer n acting president of the
company, and Jesse B. Meller as secre-
tary had been paid $1,000 for his SER
vices.
Other items of expense as shown by the
books and transmitted by Mr.. Harley to
the court We're 81, OS9. IS for office boy
work. $685. for telephone service, 3d.
1913 for Office supplies and subscriptions
to newspapers.
At a late our the hearing wa still in
progress.