New-York tribune., 1907-10-05
SEEKING TO RECOVER.
ATTACK ON BARNES-KING.
Stockholders Sag Mining Funds
We're Illegally Used.

foHowing the statement of John Gillie, presi-
dent OF the Barnes king Development Company,
reported In dispatches from the West, that only
ABOUT 100000 worth OF ore was left in the gold
mines for which 81 900 900 was paid last December
ana upon which $4,000 600 of stock had been issued
aoFlces from Butte, Mont, yesterday stated that
AtocNlolders there representing about hundred
tiious'aho shares would probably unite in suit for
'He recovery of money alleged TO have been Illegally
taken from the treasury of the company
IL was understood. the dispatch said, that the
oihciais contemplated using the $4,000 remaining
IN the treasury for exploration and development
The dispatch added that w. w. Chesley former
director of the company had made statement
that he was duped 10 the value of the property.
and that he got s12,500 as his share of the pro-
motion commission.
The Stock Exchange house of H c. Brown &
Co, of No. 49 Wall street. is interested IN the
property, and fioated a large amount of the stock
in this city. Julian NJ. Gerard, member of that
firm and one Of the directors of the Barnes-king
company, said yesterday that he hoped the reports
from Butte had been exaggerated. and that condi-
tions IN the mines would not turn out to be bad
as had been reported He said they would at once
send an expert to examine and report on the mines
and ascertain whether the reports from Butte on
the alleged present condition of the properties were
true. 1T would be a serious reflection on u.s.. he
added IF the reports of the exhausted condition of
the mines turn out 20 be correct. President Gillie
is competent mining engineer, but the best ex-
perts lithle to make mistakes. hope it Will
prove so IN this Then again he may have
been Incorrectly quoted. have wired him. but as
yet have received no reply"
Mr. Gerard went say that his firm had
been induced interest itself In the Barnes King
Development Company by John c. Laor and the
late a. ]. Campbell. both OF Butte who said that
they had made personal examination OF the prop
erty. and also presented the reports of reputable
experts to them, which showed reserves of four
hundred thousand tons.
The experts were p B. Lamb and w. F. Word
and their reports were made in May. 1896. Mr.
Gerard added that payments had been made
from the companys treasury to the knowledge Of
the New York office except such paid upon
requistion from the superintendent. the manager
or the accountant. for labor and machinery, and
that he did not believe that any moneys had been
illegally improperly withdrawn. reported. Ho
declared TINT H. c. Brown & Co. and himself had
all the stock originally taken by them, and that
he had added to his holdings when the price of
the stock began TO decline few weeks ago. he
believed It a good thing.
The stock of the Barnes King Development Com
pany is traded in the curb Last August 1t was
selling around s. 70 share; yesterday II sold
S712 cents, but. Notwithstanding the large amount
thrown the market several brokers representing
good houses not only purchased the stock. bat had
orders buy more.
John d. Ryan. president of the Anaconda Copper
Mining Company. is said to be one of tho largest
stockholders in the company Most of the stock
is held in Butte, where there are understood TO be
about six hundred stockholders who subscribed in
it is said. fully developed when purchased by
the Barnes-King interests and had been on a dvi-
dend-paying basis for several years No dividends
have been paid since the fotation OF the new COM
pany. Mr.. Giuie has been president OF the COM
pany only two months