Tonopah bonanza. [volume] (Butler City [i.e. Butler], Nev.) 1901-1909, 1905-08-19
MONTANA CONTROVERSY.


Continued from page A.
suit in ruinous loss to them; that 1t
was the duty of the directors to pur-
sue that policy which would best sub
serve the interests of all the stock
holders.
To this Mr.. Knox made the follow
ing reply: "What do we care for the
small stockholders. we did not sell
them their stock, and as lolg as we
do not want to sell what difference
1oest il make whether the stock
goes down or not"
Whereupon MI. Dickson said to
him that he was astounIei that he
should so express himself, that it
was not only the moral but the legal
duty of a director to look to the well
fare of all the stockholders, large or
small. Mr.. Knox, however, adhered
to his position, and the next day
voluntarily stated to several promi-
nent business men of Salt Lake
City that there would be no divi-
dend declared by the Montana-Tono-
pah for a number of months. Mr..
Knox then left for the east. Mr.. Ellis
concluded to attend the regular
monthly meeting on the 18th of
June. The very day that he came to
the conclusion, he wired Mr.. Knox
as follows:
Salt Lake, Utah, 6~-10-1905.
To Chas. E. Knox, Hotel Walton,
Philadelphia, Penn,
VIII be at monthly meeting fiji
teenth-Will adjourn until Friday
so you may be present if you desire.
A. c. ELLIS, Jr.
Mi. Knox claims that he never re-
ceived this telegram:
At the meeting of June 18th there
were present Mr.. Ellis, Mr.. Dunlap,
Mr.. Macdonald and Mr.. Bartlett,
Mr.. Whitley had parted with all his
stock and under the articles of in
corporation was disqualified to act
as a director. His Office was de-
clared vacant and Mr.. Dickson elect
ed in his stead.
There being but four directors
present it was by them unanimously
agreed that no action should be TAX
en- at that meeting on the matter OF
dividends. They then instructed the
secretary, Mr.. Knox's brother, tc
wire each of the absent directors
asking if it would be convenient for
him to attend an adjourned meeting
of the board at Reno, Nevada, on the
first day of July. He did so and re-
ceived a reply from each, except Mr..
Morris, that 1t would be so conven-
lent. T|hereupon the meeting took
a recess to reassemble at Reno On
July list
The statement made by Mr.. Knox
that but for the active opposition Of
Mr.. Dunlap and the Geographic pro
tests of four of the absent directors S,
these three directors, Ellis, Macdon-
aid and Bartlett, would have de-
clared a dividend at that meeting, IS
as malicious as it is u~nwarranted.
the fact is that the suggestion that
the meeting be adjourned to a time
when all the directors could be pres
emit came from Mr.. Bartlett, and was
at once acquiesced in by all the L.
rectors present.
After Mr.. Knox stated, as above,
that 1t would be convenient for MIN
to attend the adjourned meeting at
Reno on the list of July, he wired
from Philadelphia, under the date OF
June 21st, the following message:
Especial meeting board Of di-
rectors of the MOntana-Tonopah
Mining Company is hereby called to
be held at Salt Lake City at 2 p. m,
June rs, '05.
CHAS. E. KNOX, President.
All OF the directors except Mr.,
Morris met at Salt Lake City on
June 2Sth. At the meeting Mr.
Knox urged that a dividend of $780,.
900 be declared then and there, pay.
able July 25th, and gave as a reason
why he wished the declaration of a
dividend to be made on that day
that the Tonopah Mining company OF
Nevada would declare a dividend in
a day or two. and that he desired the
declaration of a dividend by the
Montana-Tonopah company should
precede that of the Tonopah com
pany.
One of the directors being absent
a dividend could not be legally de,
clared at that meeting, o any 9th.
er business legally transacted, since
under the articles of incorporation
no meeting of the board of directors
general or special, could be held else
where than at Tonopah except by
the direction of the board Of d.
rectors. The provision in the arti.
oles of incorporation with reference
to this matter reads as follows.
There shall be a monthly meeting o.
the board of directors of this com.
pany held on the 18th day of eacf
month at the hour of 10 o'clock a
m. of that day unless said day shall
fall upon a holder, and then upor