Bisbee daily review., 1906-01-17
CADENA DE COBRE MAKES
 SENSATIONAL CHARGES
ALLEGED THAT OFFICERS LOOT
 ED THE COMPANY.
Suit Brought to Compel Return to Treasury of Stock Taken Without Payment - Other Allegations of crookedness Arc Made-Treasury Is Depleted of Stock.

Alleging that Cadena de Cobre Min ing company stock to the amount of $e5i, 500 shares, values at s1 per share. was fraudulently issued to the first officers of the company. the Ca dena de Cobre Mining company. of this city, has brought suit against Ernest K. Hughes. president of the company. W. M. Hennessy, Albert E. Zeh. James E. Kinsey, Mary Kinsey, Daniel Hen messy, John Fitzgerald and William IO'Neil to have the stock they now hold cancelled.
 In the petition, which was filed at Tombstone yesterday. it is alleged that the defendants were the first officers of the company when it was organized in 1904. A million shares was issued as treasury stock to be sold the mon ey derived to be used in developing the property in Sonora. It is claimed that while officers of the company the de- | fendants issued to themselves 7S,5o0 shares each of this stock, for which i no money was paid into the treasury. This transaction. it is claimed, was re- eentiy discovered. <ae discovery was made when it was found that no more treasury stock was available for sale. The company is praying that | the stock of this treasury issue which is now held by the defendants be can
 celled. Attorney Neil has been re tained by the plaintiff.
 The Cadena de Cobre Mining Con- ing been organized and incorporated December 24, 1904. Its properties are
 in the Sahuarira district, state of So-
 nora The company owns about 250 Ipertenencias. The stock is at present selling for 75 cents a share. About POO stockholders in the company live in Bisbee and are backing the suit
 brought by the ex-officers. Ernest E. Hughes. present president Of the com pany. was an officer in the company when the alleged fraudulent transfer was made. Successors to the other defendants were elected at meeting shares each of this stock, for which | In addition to the alleged irregulari- ties in the issuance of the stock other | Irregularities were charged and litiga- ton threatened regarding them prior to the recent annual meeting of the company At this meeting transfer was made to the company of titles to several parcels of mineral lands in- cluded in the 25o acres now held, Ti- tie to these parcels had presumably been with the company all the time. but investigation brought to light the fact that individuals of the official family of the company held them. Un- der threat of litigation the transfers
 to the company were secured. Presi- tdent Hughes assisted in bringing about this termination, and at the annual meeting of the company his work and that of other officials of the company
 during the last six months, during
 which a new set of officials were in
 charge was highly commended. The isense Of the meeting was that :he new organization go ahead with develop imeht work at the property. and to se- IcHre money for this the directors were Iauthorized to sell remaining treasury lstock The outcome was finding. as Iaboye related, that the issue Of treas Jury stock was exhausted.