Deseret evening news. [volume] (Great Salt Lake City [Utah]) 1867-1920, 1901-11-25
Action Brought Against StockhoId-
ers Of Mining Company
MRS. CAREY MAKES CHARGES
Alleges Or. Hasbrouck, w. y. Burton
Aud Benz, Harmon Entered Con.
spiracy 90 divers Funds.

tnc cenler VI maze VI HtlbNh"h h''
become further involved by volumin-
Gus complaint filed late on Saturday
afternoon by Attorney u. A. Walton,
on behalf of Mrs Ellen Carey Other
suits pending, which affect the COM
pany, are that brought by Mrs, Evalena
Hasbrouck, for a judgment on certain
promlssory notes purported to
have been executed by the
directors OF the company In ia
vor Of e. II. Ullg, and $4,000
damage suit brought by DR.. Hasbrouck
against Mrs. Carey, her husband, and
Attorneys E. A. Walton and A. W..
Casey, for alleged defamation Of char
acter In circular letter Issued TO the
stockholders, for the purpose of calling
a meeting to remove Dr. Hasbrouck as
president for alleged fraud Then again
the Uhlig heirs are suing his legatees,
simon Bamberger, ct nj, on the same
notes as Mrs, Carey holds against
the company, and the completely OF the
tangle Is capped by Mrs. Garey's petit
ton, In her suit filed on Saturday ~
be allowed to intervene In Mrs. Has
brouck's suit, on behalf Of the st. Joe
company,
Mrs. Garey's suit IL brought against
Or. X, A. Hasbrouck president OF the
ST. Joe company w. $. Burton, its
secretary and treasurer; Benjamin
Harmon and II. II. Rex, directors;
Elolse G. Burton, M. II. Eddy, II calls
for the appointment Of a receiver to
take charge OF the companys affairs,
for the annulment Of several specific
acts OF the c0mpanys executive Off
GERS, and for other relief
In her complaint Mrs. Carey recltes
that her suit ID commenced on her own
behalf as owner Of 1871, S14 shares of st.
Joe stock and on behalf of all the 9TH
er stockholders who have similar
grievances against the company's otf-
GERS. II relates that the company was
Incorporated IN October 1897 with a
capital stock Of 100000, In 81 shares,
for the purpose Of operating mining
property In Bingham. Later the stock
was increased to 100000 shares OF the
same par value, OF which 100000 were
distributed as stock dividends, the re-
manning 100000 shares going into the
treasury stock The companys proper
ty is now said TO be worth half mil
lion dollars, but the mine Ia said TO be
unproductiye and the only revenues are
derived from the treasury stock.
Mrs. Carey charges that Hasbrouck,
Burton and Harmon have consplred
with the other defendants, Eddy Rex
and Mrs. Burton to divert and misap-
ply the funds and property OF the com
pany II Is specifically charged that ON
October /, 1898 Hasbrouck, Burton and
Harmon consented TO the allowance of
fictitious and fraudulent claim Of
Prest. Hasbrouck for $l6J.M. hs com
mission for selling treasury stock that
on December, 49, 1900 they colluded
with one Henry Harker TO show hy the
minutes OF q fictitious meeting that the
latter was elected as a director, when.
as matter OF fact he was not so elect
ca, ana there was no such meeting, and
that they later allowed Hasbroucks al
leged fictitious claim Of $1,000 for SER
vices rendered the company and for
expenses that In September and Oeto-
per last Hasbrouck and Burton manlp-
ulated a conspiracy by which Has
broucks claim OF 5000 for nine months
salary as president was allowed, Ia yldl
lalion OF the company's bylaws, which
was done, says the plaintiff, to cover up
Or Hasbrouck's overdraft Of company
Iunds, and entry Of a credit Of s2i9 In
Hasproucks account for fraudulent
claimV that Hasbrouck and Burton
caused to be issued TO one Joseph
slama' 1000 shares Of the compeny's
stock without consideration; that In
march, 1901, Hasbrouok made con-
tract with one Mrs. r. X. Tracey TO do
l,oVO Feet OF tunnel work for the mine
az Slz foot, an excessive charge on
which $4,000 has been paid
Other charges are that Secretary Bur-
ton ffaudulently procured the allow
anoe OF his claim OF sSS,6s as commits
sion Tor the sale Of treasury stock on
Aug. !, 1898, and that on Oct. IL OF this
year he procured by unlawful means
a credit on the companys books for
sSSL0O for services; that he has kent
fraudulent records by Inserting in the
minute book a sheet. purporting 10 be
the minutes Of meeting of the direc-
tors OF the company held on Oct. !,
1900, at which the execution of the
promlssory notes 10 the late Edmund
H. Uhlig was authorized. These are
the notes which Mrs. Hasbrouck claims
as gift from Uhllg, given as recon-
pense for her services during his Last
illness,and on which she is now suing TO
recover; that In September last. Burton
charged his lnsolvent indebtedness of
Ssb,sl TO the company against the sol
vent credit Of his wife for s7l6.25 and
caused to be issued to Mrs. Burton 90
OOD shares at price below the market
value, and on credit; that he further
violated the company's bylaws In al
lowing President Hasbrouck TO borrow
company funds.
The complaint specifies further that
the shares originally issued 10 Has
brouck Burton and Rex were In pay
nent Of their two-thrds interest In the
Wedge claim, which was declared to be
free from liens. when In fact there were
Judgments asgregating $1,000 against It
on account OF the insolvency OF the
vendors; that Hasbrouck's ten ori-
ginal shares We're sold year ago under
execution OF a judgment without re-
demption. leaving him In the position OF
not being n stakeholder on account of
his 10000 shares having been trans
ferred to Eddy to be held In secret
trust a similar disqualification as d.
rector Is charged against Rex, whose
stock Is said 20 be held BY Harmon in
secret trust, and all but ten OF Burton's
shares are said TO be held In his wife's
name
Mrs. Carey on all Of these grounds
demands an accounting 20 determine
the amount Of company funds mIsap-
propriated, and a Judgment Jointly and
severally against the responsible off,
GERS TOR such amounts. She also asks
for the appointment Of receiver, and
the removal from Office OF the offending
officers, and the election of their sue
cessors under court direction; that the
colluslve acts Of the officers be de-
clared void. that the defendants IN
control Of the company be enjoIned
from Issuing any stock pending the APP
pointment OF q receiver or their re-
mova and that the defendants be en-
Joined from paying Mrs. Tracey any
further sum on account of her tunnel
contract.
The suit Is one Of more than usual
interest on account Of the gravity OF
the charges and the amount Of values
involved