Adams County news. [volume] (Ritzville, Wash.) 1898-1906, 1903-10-28
AFFAIRS in MONTANA.
A Review Leading to Present condi.
tions

Inc copper mines Oh MOutau8 ATe
controlled by three interests-the
Amalgamated Copper company (Which
includes the old Marcus DAILY hold
ings), the Montana Ore Purchasing
company, controlled by F. Augustus
Heinze, and Senator w. A. Clark. Sem
ator Clark is friendly with the ANAL
gamated Copper company, but is not
heavily interested in that corporation.
Heinze and the Amalgamated COM
pany have been for several years in
bitter litigation, and have also fought
each other politically.
The Amalgamated Copper company
was formed under the laws Of New
Jersey April ~, 1899. In statement
made to the New York stock exchange
in June, 1901, the company stated that
it owned the following stocks: All Of
the Washoe Copper Mining company
Of Butte, Colorado Smelling & Refining
company Of Butte, Colorado Smelling
& Refining company Of Butte; Dia-
mond Coal & Coke company OF Dia-
mondville, Wyo., Big BlackfoOt Milling
company Of Bonner, Mont, and ma
jority of the stock OF the Anaconda
Copper Mining company, the Parrot
Silver company, the Hennessy Mer-
camille company, the Boston & Mon
tana Consolidated Copper & Silver
Mining company, and the Butte & Bos-
ton Consolidated Mining company, all
of Butte, Mont. The original $75,000,-
700 stock of this company was offered
ror public subscription at par, closing
May 4, 1899. 1t is stated that the total
applications amounted to nearly $412,-
100000. The capital was increased to
$155, 100000 in June. 1901, to acquire
the Butte & Boston and the Boston
Il Montana properties. The president
is H. H. Rodgers, who is represented
in Montana by William Scallon of
Butte. The directors include H. H.
Rodgers. William Rockefeller and viii.
liam G. Rockefeller of the Standard
Oil company; Robert Bacon Of J. Pier
pont Morgan company, James Stillman,
e. r. Olcott, A. G. Burrage and A. R.
Flower.
About the time of the forming of
this corporation John MacGinniss, an
associate of Heinze, bought 100 shares
of stock in the Boston & Montana.
He brought suit to prevent the sale
TO the Amalgamated company Of the
b. & M. Properties. Judge William
Clancy Of the district court at Butte,
on Heinze's application, appointed a
receiver for the B. & M, and, while
the receivership was subsequently dis
solved and Judge Clancy was com.
PEELED to order a return of the prop
erty to the Boston & Montana com.
pany, Judge Clancy taxed, as costs.
and ordered judgment against the Bos-
ton & Montana company on account of
the receivership expenses amounting
to 1921, 200. allowing 100000 of the
amount to Tom Kinds, as receiver;
$4,000 to the attorneys, Mediation &
Cotter, and the remainder to other per.
sons employed by Kinds.
About two years ago MacGinniss
brought the present actions against
the Boston G Montana company, bas-
ing his right to maintain the same on
his ownership Of the same 100 shares
Of stock. He procured from the dis
trict court a restraining order at that
time which was as broad as the in.
junction granted few days ago. For
more than two years the Boston &
Montana company has been endeavor-
ing to procure hearing of MacGin.
Mss motion for the appointment of a
receiver and injunction and to obtain
dissolution of restraining order.
The suit alleges that the Amalga-
mated company proposes to form a
trust to control the price of copper
and would injure the rights of B. & M.
stockholders. The injunction has pre-
vented the Amalgamated company vot.
ing its 50 per cent stock or paying out
the 100000 dividends &C has earned
since it took over the property.
In the decision just handed down
Judge Clancy holds that the Amalga-
mated company is prohibited from
holding any stock in the B. & M. com.
pany under Montana law preventing
the acquiring by one corporation of
stock of another. Attorneys for the
Amalgamated company say that as 1t
will take six or eight months to get
the case into the supreme court, in the
meantime the only thing to be done is
to suspend all work on all Amalga-
mated properties. They add:
"Other companies in which the
Amalgamated Copper company is a
majority shareholder, such as the
Butte & Boston, the Washoe, the Colo.
RADIO, the Anaconda and the PARROT,
are in exactly the same situation as
the Boston & Montana company II
Judge Clancy is right in his expressed
legal views, and those companies close
down for the same reasons and be-
cause of the same necessity for doing
so that compels the closing down of
the Boston & Montana company"
The result is the Amalgamated COM
panies have all closed. The Clark and
The Heinze properties are still run.
ming, but together they employ less
Than one-third the number heretofore
employed by the Amalgamated COM
pany. The shutdown stops a payroll
If 100000 per month.
The working properties of Clark and
HeinZe are at Butte That fact will