Santa Fe new Mexican. [volume] (Santa Fe, N.M.) 1898-1951, 1904-12-19
For the American Consolidated
Copper Company, Operating
in the Lordsburg District.
OVER TWENTY
COMPLAINANTS
Fraudulent Practices Charged on the
Part Of the Promoters and
Organizers.

A suit entitled Charles A. Meals e
al, versus the American Consolidate
Copper Company, was filed in the OF
flee of the district clerk of the Firs
judicial district court Saturday. Be
fore Judge McFie Saturday afternoon
Francis Fitch, attorney from New
York, and Attorney E. A. Fiske, of thi
city, appeared and asked to have En-
nest A. Johnson, of Santa Fe, appoint
ed receiver for the properties of thu
corporation, on the claim that the com
pany and the officials of it were insolv
ent. Mr.. Johnson was appointed re
ceiver and gave a bond in the sum o.
$4,000 The United States Fidelity
and Guarantee Company, of Baltimore
are the securities.
Judge McFie signed an order per
mitting Francis Fitch, New York at
torney, to act as the attorney for the
plaintiffs in New Mexico.
The plaintiffs in the case are Char
les A. Meals, Frank Liston, A. s. Braz
nell, James A. Russell, James l.. Court
ney, Frank w. Furry, Don c. Gable, AL
bert Meurer, Albert G. Meurer, Mrs
Albert Meurer, H. E. Taylor, Russell
E. Taylor, David Crear, John D. Booth
Samuel B. Skinner, Edmund 1. Hol
land, William H. Flack, Nathan G.
Douglas, Ernest A. Douglas, Henry H
Day, w. A. Fullerton, E. F. Rowley
and Annie Brill.
There are about 80 typewriter
pages in the complaint, which gives
the data concerning the forming OF the
company and the incorporation. The
promoters" are designated as Adel
bert r. Gibson, New Mexico; Walter
8. Douglas, John W. Jones, David q
Walker and William q. Mcdonald
New York. The directors for the first
three months, designated in the com
plant as Dummies" with the excep'
tion of Frank A. Reynolds, are Arthur
M. Anderson, Herbert l.. Greenfield,
East Orange, New Jersey; George A.
Bell, Jr., Peter Brodegard, New York;
Frank A. Reynolds and Frank P. Seig-
litz, OF New Mexico.
At no time since March 16, 1901,
says the complaint, has the directors
or incorporators exercised any interest
in the corporation, nor has a meeting
of either been held; that by fraudulent
and illegal acts, there were caused to
be located upon the public mineral
domain eight mining claims in the
Lordsburg mining district, Grant Coun-
ty. in the name of Adelbert R. Gibson,
with money procured by the latter, in
January, 1901, for the locating and de-
veloping of the same; that the promot-
ers met as directors and elected So
called officers of the corporation with
out the knowledge or consent OF the
stockholders; that fictitious dividends
to the amount of $4,000 were paid
stockholders, which were represented
as being dividends of the company;
that stockholders advanced money on
false representations; that 40 per
cent of the alleged stock paid by the
corporation, was appropriated by said
promoters and alleged officers for
themselves; that the pretended stock
issued by the promoters was sold to
the plaintiffs, all transferred from al
legged capital stock and issued to A..
R. Gibson.
January 16, 1905, has been set for
hearing by Judge McFie, in which the
defendant company will show cause
why the receiver should not be contin-
ued.
It is said in this connection that
Mayor A. R. Gibson, of this city, claims
a large account from the company for
services and money advanced, and
that the claim will be presented to the
receiver for payment. It is also re-
ported that among the properties OF
the company are the Atwood and Lena
groups in the Lordsburg mining dis
trict in Grant County, which were pur-
chased by the defendant company,
which paid $45,OO0 for the Atwood
group and $4,000 for the Lena. These
properties, it is claimed, were paid TOT
in full and that the only liabilities OF
the company are the claim OF Mr.. Gid
son for over $4,000 and $16,ooo 1or
judgments and other expenses hereto
fore incurred.
Mayor A. R. Gibson, who was presi-
dent OF the company up to year ago,
states that the active management OF
the company was in the hands OF the
eastern directors and Of the vice pres
ident, John w. Jones; that the organi-
zation Of the company and its manage
ment was IN New York, and the east
ern directors and that he had but small
actual share IN the management Of the