The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1901-03-31
SHAREHOLDERS SAY
THEY ARE FROZEN OUT
Want Receiver for the Niagara
Company.
UNITED STATES DEAL
CHARGES MADE BY NIAGARA
SHAREHOLDERS.
UNITED STATES DEAL

A complaint in equity reciting some
sensational charges involving the ne
gotiations leading up to the acquisition
of the control of the Niagara Mining
& Smelling companys stock by the.
United States Mining company was
filed in the district court yesterday by
Attorneys Dey & Street for their eli
ents, Michael f. Dolphin and Theodore
G. Wolf of Scranton. Pa. The plain
tiffs demand that a receiver of the af-
fairs OF both mining companies be ap-
pointed, and that other relief be
granted them The court fixed next
Wednesday for hearing the return on
the order issued to both defendant
companies to show cause why a re-
ceiver should not be appointed as
prayed for.
1t is recited in the complaint that of
the capital stock of the Niagara COM
pany 10000 shares have been issued
and that the United States Mining
company secured about 100000 shares
py purchase a couple of wears ago
thus giving the United States COMPANY
control of the Niagara company's stock
aqd its property, which is situated at
Bingham. and adjOins the property of
the chief defendant company. The
PLAINTIFFS alleSe that they own $500
shares of the Niagara company, pay
ing therefor 81 a share, the same figure
that the United States company is al
legged to have paid for the control
The plaintiffs, suing for themselves
ana ali other minority stockholders who
may care 20 join them, then charge that
Immediately after the United states
company secured the control of the
Niagara company stock, the manage
ment of the purchasing COMPANY de-
pressed the value of the outstanding
shares of the Niagara company by
Ce2slng work on the Niagara property
and resOrting TO every endeavor to
make the minority holdings Valueless
It IS further charged in the complaint
that the United States company has for
several months past used the Mia CARA
property to merely drive tunnels
toward the workings of the property in
control. Notwithstanding that the Mag
ara mine has large reserves of valu-
able ore easy Of access.
Another allegation of the plaintiffs is
That when the United States company
secured control of the Niagara stock
it ousted the duly qualified directors
and installed directors of its own crea-
ton by placing its employees and clerks
in the directory, and these have, it is
charged. placed the value of the prop
cry at a merely nominal figure.
The minority shareholders in the
Niagara company declare tlat they are
fast being driven to position where
their interests viii soon be made to
appear as an assessment instead of a
dividend, and ii is charged that the
present directors Of the subordinate
company purposely defaulted in the
payment of interest on the Niagara
company's mortgage bonds, amounting
to $500, 600, so that the United States
company, which is said to be the owner
Of these bonds now, could foreclose on
them and thus secure complete control
Of the property
1t is pointed out in the complaint that
the purchase of one mining company's
stock by another mining company is
without authority of law and contrary
TO the articles of incorpora ton of the
United States Mining company. and
hence the palintiffs demand that the
absorption OF their cOmpany's control
be declared illegal and void.
Besides praying for a receiver for
both of the mining companies, IessrS.
Dolphin and Wolf demand that the
United States company be required to
deposit all OF its holdings Of Niagara
stock with the court. and that it be
restrained from selling or otherwise
disposing of such shares The plain
tiffs aliege also that they have loaned
the Niagara company 10000, and for
the purpose of further determining
their status as minority shareholders in
that company, they pray that the
United States company be required to
return from Boston the Niagara COM
pany's books of account
Practically all of the stock in both
companies is held in the eastern states.