Deseret evening news. [volume] (Great Salt Lake City [Utah]) 1867-1920, 1905-08-08
Former LeaSers May be Compelled
To Return More Than a Million
To Stockholders,
FORMER Gov. BUDD RETAINED
Is After John Y. Mckane Who While
a Director, Was Interested 10
Mine Leases.
specIaI C,orrespondence.

! James III, Budd OF CALIFORNIA VINO mas
been here for over month as new
counsel for the recognized Jumbo
Mining company Is out with dcClar-
alton OF war IN the interests OF his
clients--war that means legal attack
upon the leasers that mined and gouged
the Jumbo property and took upwards
Of $1,000 O00 out Of its richest veins last
year The man for whom Budd Is
chiefly cunning is John McKane, who
has massive interests I'm mining pro-
perties all over Nevada, and who is the
personal representative Of Charles NJ.
Schwab in all the atters interests IN
this state, Both men are recognized
fighters and when they get together in
the courts, as they will within the
coming month. the fur is bound to fly.
There has always been some mystery
about former Gov. Budd's presence in
Goldhold. He has a large practise IN
the California courts. and when he ar
| rived here with a party of friends In p
powerful touring automobile, announc.
ing that he was Just looking over the
country. those that knew him looked
for better explanation of his coming.
Now the secret Is out and It Is shown
that all his time here has been spent I'm
preparing the details OF his attack
upon MoKane and those who were as
ISOLATED with him in taking the mill
lions out or the Jumbo property.
The exact amounts that viii be de-
manded from McKane and the others
cannot be stated, but more than $1,000
600 win be involved If the courts force
them to disgorge.
WAS A SILENT PARTNER.
shorn Of legal lntricacles. the con-
tention is briefly this, In 1904, when
| Mckane was one of the directors Of the
Jumbo company he and his associates
gained mining leases TO the most valu-
able portions Of the property. These
have since become famous as the
| Bowes- kernick and Fuller leases, Nc
| Kane's name appearing I'm neither, al
though he was known TO have the DOM
inant Interest in both. There was gold
in abundance, from the grass-roots
down. and not minutes time was lost,
day or night, in getting II out and haul
ing 1t away. According to the COM
pany's contention, II was not case
OF real or scientific mining but just
| plain every day cutting" OF the prop
erty. Get the gold, get It quick and
| get II to market were the orders and
When the company came to q reallztion
OF what was being done. they found
! they We're late I'm waking up.
They undertook to 20 10 the courts
with charge that McKane and his
| partners, one of whom. q, A. Kerr
mex was also director In the COM
pahy were violating the provisions OF
Their leases In almost every conceivable
| manner IN order to get out the gold az
rapidly as possible, But then ran up
asalnst an unexpected checkmate The
minority of the directorate McKane
aHu hernlch' applied for a receiver for
the whole property on the ground y Of
mlsnanagemen and this was granted
mus putting all the mines affairs i'm
lnc hahds or the courts officers. The
| receiver was John s. Cook, and while
ne heid the place II was impossible
Tor the officers OF the company Ia press
thelr suits against McKane and the
olheis. The Injunction went even fur
uler lhan that, for under the receiver
! snlp they could not interfere I'm any
way with the mining operations thai
were golng on under the leases.
Mohth after month the rich ore was
taheh out. while the company's hands
We're securely tied. Even the superin.
tendent OF the property could do moth.
ihs put look on impotently while the
ieaser5 miners carried off the riches of
the mine. Last spring the receiyershlp
| ''-' ~'N'NH " bIutI OF the court and
| tue company once more took control
| with new directorate from which Nc
| name ana kernick had been ousted. But
there was stu another thorn I'm tho
| compGnys side, for IN dissolving the
reoeivership, the court ordered that Tho
costs. amounting to between $1,000 ana
$1,000 should be assessed against the
property.
GOV. BUDD's PLANS.
Ana now for the further litigation nm
der the legal arrangement Of former
| Gov. ludd
we propote." he said today. TO get
bnCk Tor the lonpauy the costs OF
that receivership. Application for a
reopcuiug of the trial Tor this purpose
has been made. aud the issue In this
mattel against Nckanc and the others
will be joined before the end of August.
Next, we shall bring these defendants
into court Tor an accounting OF every
ounce OF ore they took out OF the minc
during what We hold 10 be the Illegal
period of their leases. our chief con-
tentious In these suits are that they
| not only violated the terms of their
leases but worked the property In an
unminerlikc way, 10 the absolute detrl-
ment and damage Of the property H.
self our first suit win bc against Me.
| hdllH HNu lIlhhF llItFeHled with him
in the Roves.Kornck lease. Then we
VIII go after them In connection with
the Fuller lease. The court can COM
pei them 10 show what they took out Of
the mine how they took w. where they
disposed Of it ana exactly what they got
for H. They will have to account for
everything done 10 the last penny, and
the company WIN be able to establish It's
fun rights.
OUSTED FROM BOARD.
When McKane and Kcrnick were
oustel from the directorate on oct. IS
1904 there were 100000 shares of thu
companys stock out and the McKane
party controlled only 22S,000 The men
elected 10 succeed them were G. y Holt
ana Thomas Robinson. who have since
been IN entire accord with the majority
OF tho board IN the actions against Nc
Kane ana his associates. Since the
property came back into the Company's
control on April s. some work has been
done 20 repair The damage accomplished
by the lcasors, There has been some
retimbering of the shafts and new ma
chinery has been Installed. The future
OF the great property seems assured.
Supt Taylor said today
There are L. or IA men now at work
IN the main shaft NJ the Jumbo, the
| old No < shaft Of tho RoWps-E arpfck