Bisbee daily review., 1906-09-27
DID pOWERISSUE
 STOCK WITHOUT AUTHORITY?
Statement Is Made That Fol- lowing Reorganization Of Cananea-D He Trans ed 10000 Shares to Co.

It is reported this week from usually reliable source that the oc- casion Of the closing down of the Can anea-D Duluth two weeks ago was IT. regularities which had been discovered in connection with the issues of stock of the company. According to this report certificates of stock have late iy come into evidence on the market bearing the signatures of the vice-pres- ident and the assistant secretary of the company, but not the signatur of the president and secretary of the company. These certificates are said to have been issued a few days be fore the final papers in connection with the transfer of Cananea-Duluth to Cananea Central was made. How many of them are out is not known. Ef- fort Is now being made to ascertain this important point. Until the in formation is known nothing can be done with the Cananea-Dulutt books. General confusion is made and until it is cleared up there is little hkeli- hood that the mine will be touched. At the time of the transfer of Canan- ea-Duluth the supposition was that there were between 17,000 and 1S,- GOO shares of stock outstanding. Then it was ascertained that issues had been made which were in excess of that amount. Ii is the presumption that with this discovery all intention that may have been held to give Cananea-Duluth stock opportunity to exchange for cananea Genital was abandoned, and the entire matter of foa 1f <1x n,,t,, h stockholders put in abeyance pending the outcome of the investigation re- ported to be under way.
 What position of the holders of the late issues of Cananea-Duluth will occupy is entirely problematical. The bylaws of the company did not stipu late the signature of the president ana secretary to stock certificates in or der to make them valid. Neither did they stipulate that other officials Of the company might not issue stocl over their signatures. What manner or adjustment will be made of the mat ter is at the present time entirely un known. Uuless the vice presiden and assistant secretary make some satisfactory explanation it would ap pear that they exercised authority no prohibited to them by the letter O the bylaws at time when such ae ton must have been doubtful to sa the least.
 The statement was made to a Rt view man this week. by one who m position 10 know. that MT. Powe, iate vice-president and secretary C the old Cananea-Dulutn compan, transferred to the new Cannea. .Dulut company after its re-oryanizatior twenty thousand shares of his pr, moter's stock which originally co, sisted of twenty-five thousand share, Our informant further stared that M fowers had in his possession not [ exceed l600 shares of the origins Car ranea-Duluth stock. leaving tn conclusion that $500 shares were i sred bearing the signatures of Po, CT as vice-president, and a ma named Meek, as assistant secretary
 President Powell of the Canane, Driuth cofpany is at present in il east and it is supposed this tang Witn reference to Cananea-Dulur s.ock, Rearing fhis signature of
 Wcepresident and assistant seer tary will be adjusted in come ma Fer during his present visit.
 IL is openly charged at this end tn fower did not act in good faith issuing certificates over his signatu, as vice president and having an a sistant secretary sign such certificate but if the statement is correct tn
 Power has transferred to the new co pany 20.0O0 shares of his promctit stock, it is probable that these e tificates so issued will be taken ca of by the new company.
 In the meantime no official stai
 meDt on this subject has been issu
 from the office of the. Cananea Dulu
 company, although one is expect
 during October.