The Goldfield news. [volume] (Goldfield, Nev.) 1904-1911, 1905-10-20
Denver Bullfrog Difaculty Strengthened
Out and Shareholders Satisfied

paper had gone to press last Friday
afternoon, announcing the settlement
of the Denver Bullfrog difficulty which
for several weeks had created a sensa-
ton in mining circles. The message
was to the effect that a number Of
prominent Nevada and eastern capital
lists, represented by T. l.. Oddie, had
taken over the property and had made
provision to protect the interests of all
shareholders. The deal was consum-
mated by the payment of the $4,000
due on the property to Messrs. Ray,
darcy and Sutherland, the original
owners of the claims, and those gentle
men at once turned owe the property
to the eddie syndicate. Stauf and
Berghauser, the men who promoted the
original company, handed over the
Incorporation to Oddie and associates,
who reorganized the company. The
following named gentlemen were
elected as its directorate: I. l.. eddie
of Tonopah, John Fl. Carstairs of Phila-
delphia, Hugh II. Brown of Tonopah,
D. b. Stinson Of Philadelphia, John w.
Brock of Philadelphia, j.. t. Overbury
of Tonopah, C. M. eddie of Tonopah.
The officers are: It. l.. eddie, presi-
dent; John H.. C~arstairs, vice presi-
dent; Hugh H. Brown. treasurer; II. H..
Cookson of Tonopah, secretary. The
personnel of the new corporation as
sures not alone the capable exploita-
ltion of the mine, but likewise the pro-
lection of shareholders; and by its
formation at a crucial period, when 1t
seemed as though the stockholders were
to be left to hold the sack, a mining
,oo-Ial 4lo4 u,o,ll ka,a kaan nf in
estimable damage to Southern Nevada,
was nipped in the bud.
The scheme whereby it appeared for
a time as though innocent holders of
Denver Bullfrog stock were to he
mulcted, presents a number of SEEM
ingly nefarious features, and is odorous
of stock jobbing and actual fraud. BIT
for the intervention of the Oddie
people there seems little question but
what the mischief would have been
far-reaching in its effects and that
financial loss would have entailed upon
all holders of the securities. AS it is,
Stauf and B~erghauser stand convicted
of gross mismanagement of the com
pany's affairs, and in some instances
it is being intimated that they are
criminally responsible under the
statutes. If the latter assertion he
true, and their actions certainly SAVIOR
of fraud, that they have not been
hailed into court ere this is largely
due to the protection afforded the
stockholders by the officials of the re-
organized Denver Bullfrog Mining com
pany.
The original Denver Bullfrog cor
poration was promoted by Stauf and
Berghauser and a per cent of the treas
ury stock was disposed of for the pur-
pose of raising funds with which to
acquire title and to operate certain
mining claims in the Bullfrog district.
Right to work the ground was vested
in a bond and lease under the terms f
which 100000 was to be paid for the
property in four installments. The
first of these, in the sum of $4,000, was
paid promptly at the time the agree
ment was signed by the parties to the
contract; the second payment, amount
ing to $4,000, fell due some three
weeks or more ago, but as it was not
Forthcoming at the expiration of the
time limit, the property reverted to the
first parties to the contract. Later,
however, it is asserted that the money
was proffered Judge Ray, who held a
quarter interest in the original discov-
cry of the claims; but that he refused
to accept it pending consultation with
his partners. Russell Sutherland, who
also held a quarter interest in the
claims, is said to have been unalter
ably opposed to accepting the money
and granting a renewal of the bond.
The reason given for his refusal was
the fact hat other parties were ready
to take over the property at a large
raise over the price as stipulated in
the original bond. From that time IN
until the matter was finally disposed
of by the Oddie syndicate's action, all
sorts of rumors were rife concerning
the motives which animated Stauf and
~berghauser in the premises, their gen
eral trend being decidedly unfavorable
to those gentlemen. In an effort to get
the inside facts of the case a reporter
for The News called upon Mr.. Berg
hauser. who at that time was manager
of Denver Bullfrog affairs, and was as
sured by him that arrangements had
been made to adjust matters to the
satisfaction of both the Ray, Suther-
land interests and the Denver Bullfrog
stockholders. He stated that the
company was amply able to make the
payment due and that it would have
been made before the expiration of the
time limit save for an understanding
with Messrs. Ray, ct al.
eve want to pay the entire balance
due on our bond at %once,' said he,
"rather than in installments as is
specified in our agreement with the
locators of the property; and it is our
purpose TO do SO Immediately, provid-
ed we can secure a reasonable discount
for cash. Negotiations to that end are
now on and are accountable for our
failure to meet payment on the second
installment on the bond. Mr.. Darcy
is coming to camp for the purpose IF
consulting with his partners and l sup
pose we will be appraised of their deci-
sion within a few days" When asked
if the old agreement would again be-
come operative in event of the turning
down of the new proposition, Mr.. Berg
bauser renlIed. CT have an under-