The sun. [volume] (New York [N.Y.]) 1833-1916, 1907-05-29
ANOTHER SUIT
COPETE STOCKHOLDERS ASK FOR
AN ACCOUNTING.

the Defendants Charge Is That the
Lawyer Manipulated the Shares to His
Personal PrOnt-West virginia Suit.
HOLSTER Logan and Myra B. Martin,
executors Of the estate Of Waiter s. Logan
are defendants In another suit over his
mining promotions. The suH has told Of
the action begun by an officer Of the San
Luis Copper Company. Yesterday 1t was
learned that Logan and Miss Martin have
been sued In the Circuit Court Of Ohio
county. West Virginia. The complaint was
sled on May 10 and the PLAINTIFF are a
committee Of stockholders in the Copete
Mining Company, Of whom the leader is
Epes Randolph, general manager of the
Southern Pacific RRilroad in New Mexico
and Arizona and holder OF 5000 shares of
Copete stock. The specific plaintiffs in the
case are Russell B. Budd, holder Of forty
shares OF Copete mining stock, and William
l. Horner, who holds 200 shares, and all
other stockholders of the Copete Mining
Company who have contributed to the
expenses of the suit. The defendants are
the Copete Mining Company, the Melczer
Mining Company, the Copete Consolidated
Copper Company and the two executors.
Logan. rs in the San Luis suit, is charged
with Juggling and manipulation Of the
stock, with appropriating to his W uses
money received for it's sale in defraud
OF the Stockholders rights. 1t Is alleged
that by some manipulation Logan, who
originally had no interest whatever In the
mining properties. had succeeded in seour-
ing in hts own, hands a controlling interest
in the stock Of tho Copste Consolidated Cop
per Company and that this stock is In the
hands Of his executors.
The suit is brought to compel the exeou.
tors and their associates to restore to the
company all money received by them for
sales of stock and not expended for the
company or else expended wastefully and
without authorization; to restore all stocks
possessed by them in~equitably, and to give
an tented statement Of the transactions
as officers Of the company. A circular
issued on February 1. 1907, by the plain
tif1s states that one of the objects Of the
action is to get a true accounting for some
$6Oo, GOO paid in to the present management
by people who have bought stock In the last
six years. The plaintiffs ask for the annul-
ment Of the contract by which the Copete |
Mining Company was absorbed by the
Copete Consolidated Copper Company, and
for the appointment of a receiver il neces-
sary.
The Copete Mining Company, it is said,
was organized in 1000. with q capital of
100000 shares at S. each, for the purpose
Of taking over all shares Of the Melczer
Mining Company The latter company
had a capital Of $4,000 and owned unde-
veloped copper mines in Sonora. Mexico. It
the Copete Mining Company in exchange
for the stock of the other company and then
sal a part OF the Copete Mining Company
stock to develop the mines. Mines near
the Sonora property were purchased from
j. Harwiok with the money belonging
to the Copete Mining Company, but the
10 is alleged, remains in the hands
Of the MBlczer Mining Company. Certain
Of the notes OF the opete Mining Company,
which were part of the puBohase considera-
ton, it is alleged. still remain unpaid.
w. 8. Logan was the moving spirit in
the Organization of the new company,
became director and president and con-
tinued. practically in control. Stock sold
and Logan received large sums Of
money, some OF 1t used ~for his personal
use either without excuse or under the
guiee of paying Office or other expenses,
anyway in fraud Of plaintif's rights.
Plaintiffs aver that nothing like the total
amount realized was ever used for me
Of the company"
Early in 1909. it 10 complained. the stock
Tell to 10 cents q share.
Then il is declared Logan came to the
rescue with the Copete Consolidated Copper
Company. capital 1000 900 shares OF 81
each, with Logan president and director.
April 10, 1905. it ID said, a contract was
entered into by which the Copeto Mining
Company, by Walter S. Logan. president
turned over It's stock to the Copete Con-
Copper Company. by Myra B.
Martin. treasurer" This contract, il is
declared. was ratified by a vote of 5000 o
shares Of the Copete Mining Company,
but these shares consisted chiefly of treasury
stock and stock held by Logan.
The Copete Consolidated, it is ALLEGED,
TO develop the properties with part
Of the proceeds OF its stock sale and the
proceeds Of the mine were to bA divided !
between the Copete Mining and
The Copete Consolidated.
1t is charged in the complaint that Logan
70 manipulated the stocks that the share
holders Of Copete Mining are owners OF
stock in a company with no assets except
he contract with the Copete Consolidated;
hat Copete Consolidated owns the stock
IF the Melcsef Mining Company, which
mas the mines but has no money to develop !
hem. and that the whole is in control OF
estate. II.
The complaint is answerable In June
Ind the West Virginia court has appointed
\ commission to take testimony in the case
New York.