Tonopah bonanza. [volume] (Butler City [i.e. Butler], Nev.) 1901-1909, 1906-07-14
DECISION OF IN
TERESTTO MINERS
Knapp Highland Mine
Case Settled

A dispatch from Sumpter, Ore, Of
the 9th inst. says that at a recent ses-
sion Sam White, Judge of the circuit
court of Baker county, handed down
his decision in the now famous Knapp
Highland mine mortgage case, and by
the decree the mine absolutely belongs
to the company, subject to the lien Of
the Haines Mercantile company, which
the company has always been prepared
to pay. The mortgage is held null and
void.
The essential points of the decision
are as follows:
~ That M. H. Knapp by his sub
scription for {, 1893, 998 shares of the
capital stock of the Highland Gold
Mines company and the conveyance by
him to the company of the mining
properties described in the pleadings
herein, in payment in full of his sub
scription to said stock, became the alb
solute n of the said 2, 900, 998 shares
Of the fully paid up and worcestershire
capital stock of said corporation.
(2) That the said sum of 1886, 500,
due and owing the said defendant, M.
H. Knapp, as the balance of the pur-
chase price of the said g. 99, 1893 shares
of the capital stock of the Highland
Gold Mines company under said con
tract with Neil ]. Sorensen, was the
debt and obligation Of Neil j. Sorensen
to said defendant, M. H. Knapp, and
was not the debt or liability of the
said defendant, the Highland Gold
Mines company.
(3) That the resolution passed by
the board of directors of the Highland
Gold Mines company on April rs, 1905,
authorizing the president and secretary
of said corporation to make, execute
and deliver to defendant, M. H. Knapp,
the promissory notes of said corpora
ton in the sum of $35, 500, and to make,
execute and deliver the said mortgage
upon the company's property to secure
payment of the same, and the making
and delivery of said notes and mort
gage were each and all of them illegal
beyond and in excess of the powers
and authority of the board of directors,
ultra wires, and without any considers
ton whatever, and void.
(4) That as to said notes and mort.
gage the equities are all in favor Of
the defendant, the Highland Cole
Mines company, and that said promis.
sorry notes for the said sum of 1886, 5O(
and the said mortgage securing the
same ought to be surrendered up anC
cancelled, and the said mortgage re
moved as a cloud upon the title to tn,
said properties of the said defendant
the Highland Gold Mines company.
mentioned and described in the plead.
ings herein.
(5) That the defendant, M. H,
Knapp, has no valid or subsisting lier
upon the mining properties of the de
defendant, the Highland Gold Mine.
company, described in the pleading
herein, by virtue of said notes anC
mortgage, or otherwise, and that hi
has no standing in this suit to challeng,
the validity of the plaintiffs claim anC
lien upon said mining properties, ant
that the defendant, the Highland Golt
Mines company, having made default
and failed to answer the complaint O.
the plaintiff filed in this suit, that tn,
plaintiff is entitled to the decree O
the court foreclosing its said lien upol
said mining properties and to a deere,
accordingly for the amount claimed
together with the sun of $3.50, reason
able attorneys fees.