The Washington herald., 1907-10-24

Washington stockholders of the Mitch
ell Mining Company last night. to the
number of about 400, voted 10 subscribe
70 cents a share to create a fund with
which TO meet pressing indebtedness Of
the company, and to furnish a basis Of
reorganization upon which TO save the
property from a receivership.
This action was taken after a full and
frank statement of the condition of the
company had been made by the tenn
porary president Mr.. John J. Cassidy
and after the reading Of a statement by
Mr. Thomas d. Wing. OF New York, at
toney employed by the directors TO ex-
anime into the affairs OF the company IN
Mexico.
The meeting Of the Washington stock
holders was called by a circular sent out
by President Cassidy few days ago.
Practically all the present Washington
stockholders were present. President Cas-
sidy presided. and his statements were
listened to with great interest hy those In
attendance.
Affairs of the Company.
President Cassidy went over the affairs
of the company. and told the stockholders
how the directors had learned of the con
diuon OF the titles 20 the property. the
existence OF subsidiary companies In
Mexico, and what steps had been taken
10 remove George Mitchell from the con-
trol Of these companies and from the
presidency Of the parent concern. The
statement criticised the management of
the companyS affairs by Mr.. Mitchell
severely. It showed that all the money
of the company had been spent, that the
company had debts pending, aggregatiag
about $2I0e01. of which about Sl0oC rep
resented money advanced on notes by
the directors; about $4,000, claimed by
OIr. Mitchell and $4,000 In unpaid claims
against the company some of which are
pressing for payment. One claim, Mr..
Cassidy said. was so urgent that the
creditor had executed an attachment
against the property in the Offices Of the
company IN New York
The statement Of Attorney Wing. which
was a long document. was read TO the
stockholders by Mr.. Donald Mclean. It
gave the results OF hfJy-tive days OF in
vestigation made by Mr.. Wing in Mexico
City. at the mines and along the pro
jected railroad from the mines TO the
coast tt described I'm detail the several
properties, the progress made in building
the railroad and other facts In this
report the titles to the property in Mexico
were shown 10 be defective, and after
the reading AIr Cassidy said that Mr..
Mitchell and his wife had surrendered 10
IL ina 4
papers to give the company correct title
When Mr.. Cassidy was through with
his statement he told the stockholders
plainly that unless the directors were
able 70 raise about $4,000 Immediately, he
saw nothing except reCeivership He
said the directors were in negotiation
with parties who would advance about
S2,50oeco with which TO pay off indebted
ness, retire the bonds issued upon the
La Discha Railroad and leave a large
cash balance with which 20 finish the
railroad and develc7 the mines, but that.
this syndicate had not yet come 10 terms
on the proposition.
Mr.. Cassidy proposed that the stock
holders sign proxies for their stock, Civ
ing the directors control which would
enable them 10 enter into arrangements
with this syndicate with view to saw
ais blil Dl'l''A tF j i4@ 4tl-tbiiiE AHfO uU-
jOUrned
Voluntary subscriptions,
@ y majority of the stockholders remain
ed in the haIl animatedly discussing mat
ters. In about half an hour the meeting
was again called to order and the action
taken providing for "a voluntary subscrip-
ton 10 the funds Of the company az %
cents shara taking the company's note
for the amounts paid. This, was thought
would furnish the necessary money to
relieve the directors and enable them to
complete arrangements with the syndi-
cate for the rehabilitation Of the corpora
tion and the development Of the property
1t is proposed that a canvass of the
Washington stockholders shall be made
within the next few days TO receive these
subscriptions. and that the other stock
holders throughout the country shall he
approached by circular 20 make the same
subscriptions.
The plan of reorganization is that
stated in The Washington Herald several
days ago. Two shares of stock will he
issued for one Of the present issue. with
a par value Of s. instead of SO a share
The stockholders of record will be given
share for share of the new stock. One
half of the new shares viii thus be left in
the treasury to become the property of
the syndicate which advances the money.