Deseret evening news. [volume] (Great Salt Lake City [Utah]) 1867-1920, 1903-09-07
Mr.. Caughey's Attorney Gives a
Little Inside History in the
Matter
SCORES PRESIDENT MUCKLOW.
Explains the Situation Under His Man
agement and Criticizes Certain
OF His Methods.

Ing & Smelling company, which throw
some light on the differences leading mp
10 the suit flied recently In Connectl-
cut, and which was mentioned In the
Saturday issue of this paper. The first
letter Is as follows;
Dear slr:--You have probably read in
the daily papers that G.. j Caughey,
suing as a stockhoder Of the Majestic
company In his own behalf, and IN be-
half OF such other stockholders as may
/. choose to join him. has brought SUIT
against William b, Mucklow, individu.
ally and ms, member OF the frm OF
: Chapman, Mucklow & Bosom, and
against the Majestic Copper Mining IL
5 Smelling company
The suit Is brought to compel the firm
of Chapman. Mucklow & Bosom to ac-
count for the stock Of the Majestic COM
pany received by them and the money
that they received from It's sale while
acting as the companys fiscal agents,
and also TO compel Mr.. Mucklow TO re-
turn to the CORPORATION 10000 shares Of
its stock which Mr.. Caughey claims
was issued to him without consider
alton.
In behalf OF my client | made de-
mand upon the officers and directors az
the company to bring suit In It's name,
but for obvious reasons they paid no
attention whatever to the demand and
thereDpon Mr.. Caughey brought thcsuit
In his own name. Joining the corpora
tion as a defendant, as the Saw re-
quires in such cases
The bill of complaint Is long and Is
on file In the clerks office of the Unit
ed States circuit court In Hartford II
you want any further information re-
garding II, ! shall be most happy to
give Il TO you upon receiving such a
request. Yours truly
QUINCY WARD BOISE
Attorney for the Complainant.
THE SECOND LETTER,
AS VIII be seen from the second let
8 ter. which follows, Mr. Boese takes oc-
casion TO criticize President Muoklow
and certain methods which he Is alleged
TO have resorted to in the handling of
the company's AFFAIRS. He says;
In behalf Of Mr. Caughey, the COM
plainant In the suit brought In the Unit
ed States circuit court for the District
of Connecticut as well as for many 9TH
or stockholders, desire 10 bring TO your
notice the serious condition Of the af-
fairs OF the company, evidenced by the
statement or Mr.. MucklOW.
We have to assume that these state
ments are made In his capacity as
president OF the Majestic Copper Min
ing and Smelling company, though
most of them are on the letter-heuding
of Chapman, Mucklow & Bosom. You
probably received q bundle Of papers
shortly after May 10, 1908, consisting OF
various circulars, VIZ: Greeting from
the board OF directors TO the stockhold-
ers ITO the Majestic
Stockholders" ''rwenty stockholders
express their convictions" Report OF
Col. william A. Parish General Man
ager," "a Letter. and an agreement
to loan the company money.
The contents of these various docu
ments was interesting, although con-
Trajectory, and the immediate effect
was the depreciation In value of the
stock which had been selling at be-
tween "a and $3.50 per share, to less
than 81 per share
In behalf Of certain stockholders,
wrote a letter to Mr.. Muckow critics.
ing his plan for raising money and
stating that 1 thought. from business
standpoint, II was outrageous that
company which, according to the cir
cular entitled 40 the Majestic
Stockholders had assets worth Sl0-
100000 should have TO pay the eXtor-
tionate interest offered In the circular,
amounting to 46 per cent / received
In reply letter from Mr. Mucklow,
and, after l had written to him sec
ond time, ] received visit from him.
He acted In such "A peculiar unbusi-
ness-like manner at this interview that
] was convinced, and ! so advised my
clients, that we could not expect any
thing but disaster IL he and his board
OF directors tbcoause Mr.. Mucklow
stated that they were This boardO y
remained IN control of the affairs OF
the corporation However, Mr. Caughey
and other gentlemen were loath to
take any steps at that time which
might affect the credit of the company
and desired TO give Mr.. Mucklow full
opportunity TO work out his plan for
the financing of the corporation, and
for that reason the bill OF complaint
was not filed six weeks or two months
ago.
Let us see what the situation is UNI
der the Mucklow management: Ac-
oording to the circular "To the Ma
Jestic' Stockholders" which circular is
dated May 16 the company was en-.
tirely free from debt, / quote the cir
cular.
"Fourth-therc are no debts what.
ever owing by the Majestic company.
Not a single note or obligation is OUT
stonding."
"seventh--The smelling plant win
be I'm fun operation IN a few weeks
when the net income OF the company
viii be In excess Of 100000 a month";. ]"
II we are to believe these state
ments, at that time the finances OF
the company We're I'm a nourshlng con-
ditlon and an income of 100000 a
month was assured to the company in
the course OF IA few weeks"
Now, let us refer to the circular
which was issued by Mr.. Muckiow
under date OF Aug 20. three months
later, which you have probably before
you now
I'm fact, Il looks as though every
thing was coming our way except tho
money from stockholders on the loan
end am greatly perplexod and handi-
capped by reason OF this failure I
am short nearly 10000 I'm connection
with the July payroll, which Is due 10.
day (Aug. 22) and 1 am therefore.
making strong personal appeal TO
200 Of our leading stockholders 10 send
Immediately from $3.50 to 81 600 each
so that ! can remit the necessary funds
10 pay the labor bills and supplied
Unless ] secure this money the credit
OF the company VIII suffer materiallv.
and l may find IL necessary To shut
down for the time being"
Providence was needed TO prove tbat
] was correct in the opinion which I
expressed regarding thhe inability ~
MuCklOW and "his bOprd NJ dtr,.i..-tl