The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1901-10-06
FRAUD CHARGED
IN MINING DEAL
Sensational Allegations Made
Against AlViras E. Snow.
C. D. MORRISON PLAINTIFF
SAYS SNOW SECURED HIS PROP
ERTY BY FRAUD.

A suit was filed in the district court
yesterday by Dickson, Ellis & Ellis.
attorneys for c. d. Morrison. against
AIviras E. Snow, the Morrison Mining
company, L. w SncW and Morton
French, in which some sensational al
legations are made against Snow, who
is the secretary and treasurer of the
defendant company. With the filing
Of the complaint a temporary restrain
ing order -EaS issued and served upon
all of the defendants, commanding
them to -desist in doing the acts COM
planned of by plaintiff, pending trial
of the case.
In the complaint it is alleged that on
April II, 1900, the plaintiff, Morrison,
and Alviras e. Snow entered into a
contract whereby plaintiff conveyed to
Snow the Concordia group of four
mining claims, situated in Humboldt
district, New, valued at $4,000, to hold
in trust until the corporation known
as the Morrison Mining company, was
organized, in pursuance of the agree
ment. Thereafter, it is further al
legged, the title to the property was
conveyed to the corporation by Snow.
and as was agreed upon Snow took
100, 900 shares of the company's capital
stock as his compensation for organic
ing the company at his own expense
and the plaintiff was allotted 10000
shares of the stock, leaving 100000
shares in the treasury to be used for
working capital.
1t is then set up in the complaint
that Snow and Morrison agreed that
neither would sell or dispose of his
stock so long as the shares in the
treasury remained unsold. and the
PLAINTIFF left his stock in the keeping
of A E. Snow, the company's SecTe-
tary and treasurer.
Fraud is Charged.
The complaint further charges that
during the month of June last, Snow.
for the purpose of cheating and de-
frauding plaintiff out of his stock and
coercing him into selling his shares
to Snow for a nominal sum. fra udu-
lently represented to plaintiff that he
had been unable to dispose OF any of
the treasury stock, but on the con-
trary had been compelled to donate
$4,000 shares of his own (SnoWs) stock
to induce responsible and influential
men to become interested in the COM
pany. Snow further falsely represent
ed to Morrison, it is alleged, that nc
price whatever could be obtained for
any of the treasury stock and that
because the company was in debt &c
Snow and others it would be necessary
to levy an assessment upon all the
shares not in the treasury 1t is al
legged that Snow well knew that plain
tiff could not pay his share of the
assessment and on July u he induced
plaintiff. it is charged, to part with
$4,000 shares of his stock to Snow
upon payment to him of 800 and TAX
ing his secured note for $500. payable
in monthly installments of 800 each
and in addition Snow agreed to pay all
assessments upon MOrrison'S remain
ing 5000 shares during this year. Nor
rison then gaSS an order to Snow au-
thorizing the issuance to him of the
{ plaintiffs $4,000 shares
Representations Were False.
1t is then set forth that it was on
Sept. 8 that plaintiff discovered for
the first time that all of Alviras f.
Shows representations to him were
false and untrue. it is alleged, and
made for the purpose of cheating and
defrauding Morrison out of his stock
and coercing him into selling 10 Snow
for a nominal sum. The complaint
charges that Snow had sold 80 ,00l
shares of the treasury stock to vari-
Gus persons at a price not less than
2 cents a share and, in addition, had
! sold more than $4,000 shares of his
/ own stock at prices in excess of
| cents a share, while the value of the
stock in the market is alleged by
/ plaintiff 10 be cents a share.
After denying the necessity of levy
l ing an assessment upon the stock
! Morrison charges that Snow fraudu-
/ lently transferred to his brother, L. w
.
/ French, a relative by marriage, tC
! Alviras E Snow, the remaining shares
/ of plaintiff, no valuable consideration
| being paid for the stock by them.
In the meantime Morrison rendered
/ to Snow the $1OG received on account
! of the sale contract and the unpaid
! promissory notes and demanded the
/ return of his stock, upon which no as
! sessment was levied, but the demand
was refused, although the tender was
/ renewed, it is alleged.
The plaintiff prays for a judgment
of court decreeing that the contract OF
sale for Morrison stock to Snow null
and void on account of fraud and re.
! turning to plaintiff his stock upor
K plaintiff paying back the 800 and the
unpaid notes. A further prayer is tha'
each of the defendants be enjoineC
/ from disposing of any of Morrison:
/ $4,000 shares of stock pending a tria
/ of the case.
The temporary restraining ordel
/ upon Alviras e. Snow, In w. Snow
Morton French and the company wa!
/ granted.