The Butte inter mountain. [volume] (Butte, Mont.) 1901-1912, 1901-12-21
HMNZE, M'GINNISs AND OTHERS
ACCUSED OF CONSPIRACY.
ACCUSATION A PLEADING FILED
Answer in Suit Of MacGinniss and
Lamb Against Parrot Company
Describes Conspiracy to 1njure
Parrot Company.


company. Charles Hickey, Charles D.
Burrage, H. A. Galwey, Sidney Chase,
A. w. Bemis, E. G Story, r. D. Wilkie,
Henry II. Rogers, William G. Rookie
feller, James Stillman, E. p. Olcott, Rob-
ert Bacon, William Rockefeller, Albert c.
Burrage and William ScallOn, to have
receiver appointed for tine Parrot COM
pany and to have the Amalgamated
Copper company declared a trust, an
answer was filed yesterday by H. A.
Galway and the Parrot company.
The answer declares that the Parrot
company has conducted it's affairs to
the best advantage of all it's stockhold
ers, land denies that there is or ever has
been an agreement, understanding o.
conspiracy among the defendants to de-
fraud the Parrot company or any of it's
stockholders.
In Stockholders Interest.
1t declares that the defendants have
conducted the business OF the corpoAa-
tion with the interests OF all the stock
holders in view.
1t allege that instead of the affairs
of the company being conducted to the
disadvantage or loss of it's sharehold-
ers since the Amalgamated company be-
anne owner Of the majority of the stock
in 1t the contrary is true and the COM
'any has been extremely prosperous.
It says: The defendants alege that
she capital stock of the Parrot Silver &
upper company consists of 100000
hares, of the par value of SO each, rep
esenting ntha whole par value Of $2,-
10000, and that there was paid in div
iaends upon said stock in the following
cars the following amounts:
1896, none; 1886, none: 1897, $1O2 S57 80:
1898, $413,730: 1899, $685. Ais; 1900, $780,
le0."
Three Dividends Paid.
During the present year. the answer
says, there have been paid on the stock
three dividends of $3.50 per share.
1t adds that prior to 1899 the stock of
: he company was held by few persons
and was not dealt in generally, and that,
although it was listed in the Boston
took Exchange in the year 1890, there
Eias practically no dealings in it until
iie year 1893. Since that date it has
been frequently bought and sold in both
Boston and New York.
The answer says that the stock was
sold for $3.50 a share in 1898, and that
the highest price it reached that year
was $40. while during the present year
prior to the panic. and in April, the time
Lamm and MacGinniss began their ac-
ton, it's market value was never less
than $50 a share.
Denial Is Made.
The answer denies that the plaintiffs,
at all the dates mentioned in the COM
plant, ever held more than 40 shares of
the Parrot compaay's stock, and allege
that any stock MacGinniss may own or
hold was transferred to him on the
ooks of the company in last April; and
they further allege on information and
belief that this stock was acquired by
MacGinniss in April, and was purchased
and acquired with the sole purpose of
instituting this suit to the annoyance of
these defendants, and with full knowl-
edge on his part of all the matters and
things set forth in the complaint, in so
FAR as any of the same may be true"
The answer alleges upon information
and belief that Lamms ownership of
stock has been purely nominal, and that
the said stock has been, during the whole
Of said time, and is, really owned by
some one of the other persons herein
after mentioned as having entered into
a conspiracy to injure and annoy the
defendant, Parrot Silver & Copper Min
ing company"
Further Statements Made.
The answer proceeds with the follow
ing statement:
Defendants further allege, upon in
formation and belief, that prior to the
institution of this action, a conspiracy
was entered into by certain parties to-
wit, John MacGinniss and Daniel Lamm.
Arthur p. Heinze, the Montana Ore
Purchasing company, corporation. and
others, to defendants unknown, to depre-
ciate the value of the stock of the Parrot
silver 4 Copper company to the great
injury of all it's shareholders, and to
take the management and control of the
business affairs of the said company
from it's lawfully elected officers Snd di-
rectors and to secure, by means of fraud
and imposition upon this court the APP
pointment of receiver who would agree
with such conspirators to so conduct the
business and affairs of such corporation
as to depreciate the market value of
the stock. and by the fraudulent hand
ling of the product of the mines enrich
themselves at the expense of the COM
pany.
Great and Unnecessary Cost.
That the Montana Ore Purchasing
owns and operates smelter
at the city Of Butte, and it was the
Intention and purpose of the conspirators
such receivership to cause :he
ores of the defendant company to be
turned over to the said Montana Ore
company's smelter for treat
ment at great and unnecessary cost to
the Parrot company. and by such and
other fraudulent means the profits of
the operation of the mines Of the de-
fendant Parrot Silver & Copper COM
pany were TO be diverted from the share
holders OF that company to the use Of
such conspiratOrs.
f"That pursuant to such conspiracy,
among other things, the said plaintiff,
John MacGinniss, acquired the stock now
OF record upon the books of said COM
pany in his name. and instituted the
present action"
The defendants pray that the plain