Bisbee daily review., 1907-05-15

seems that the alleged misrepresenta- ton of Britt, who, 1t is said claimed repeatedly that there were 100000 tons of ore blocked out. was respon- sible for the failure of the entire deal. . as the Mitchells, when they examined the property, came to the conclusion they had been fooled and demanded that the contract be rescinded. It is understood that George Mitchell has taken care of the outstanding treasury stock of the Cananea-Globe Company which was sold for cash
 When seen and asked about the matter yesterday afternoon Mr. Nor rison said:
 ''The first connection which I had with the matter was. when Mr. John C. Britt. president of the Five Points Company. called upon me at my office in Bisbee some time last July, and suggested that I lend my services in an attempt to finance the Five Points Copper Mining Company. MT. Britt presented to me letters from three of the banks of Globe. recommending him in the highest terms as man worthy of trust and confidence. On a previous visit to Globe I had ascer- tained that his general reputation in that community was excellent.
 After this introduction, which seemed to me to be sufficient to war rant placing confidence in what he said, he represented to me that in the Five Points companys mines were large and valuable bodies Of ore blocked out. and that the only thing needed to place the property on pay Ing basis was reduction plant of ad- equate dimensions.
 Acting on these premises. [ thought that I could safely take the matter up with some friends Of mine, and went on to New York City in company with Mir. Britt, whom | in- trodueed to the Mitchell brothers, Robert and George. I explained my position in the matter thoroughly to the Mitchells. stating that was not mining expert. but thought that the proposition would merit inyesttga- ton.
 At that time MT Britt represented to the MitchelIs that at the Five Points property there were 100 900 tons of ore already blocked Our. On account of the convincing manner in which this statement was made and reiterated. confidence was placed in 1t, and the New York people proposed plan whereby what MT. Britt desir- ed, namely. reduction plant, could be furnished. This plan, as every enc knows, was the formation of the Cananea-Globe Company.
 At the conclusion of. the 1i,-.,u,;- lions in New York I returned to Ari. zCna, and on nay arrival in Bisbee. when asked abont the matter, advised what I thought. and what would have been very advantageous move. had 1t not been for subsequent develop ments. I advised the exchange of Five Points stock for Commentators stock at the ratio of share for snare. which was the basis agreed upon. and was entirely optional with the minor hs stockholders. as the whole trans acticn was simply a stock deal be- tween Britt. representing the majori- ty stockholders in the Five Points Company, on the one hand. and the Mitchells on the other.
 Everything went well until George Mitchell visited the Five Points proD- erty. where in the meantime Britt had been installed as superintendent. When he visited the property MT. Mitchell at once contended that Mir. Britt had misrepresented matters en- tirely, and that instead ot uaytug 100000 tons of ore blocked out. the Five Points property was simply a de- Seiopment proposition with stringers of ore. and should have been so rep resented. Acting on this ground he al once demanded that the contract with Britt be rescinded, and the en- tire deal called off.
 Mir. Mitchell then, I believe, took steps 10 protect those who had pur- chased the treasury stock of the Can anea-Globe Company. which had been placed on the market.
 The stock of the Five Points com pany which had been sent to the of fees of the Cananea-Globe Company for transfer was returned to the own. CTS. and the title to the property re- mains IS 1t always has been, in the Five Points Copper Mining Company"
 It seems apparent from a review of the whole matter. that the only per sons hurt are the Mitchell brothers, on whose standing the company was ffoated, and who. il seems. will have to pay the expense of all tine work that was done at Globe. The stock holders of the Five Points Company are now in the same position they were before the deal was thought of.