New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1908-12-01
SCHWAB A DEFENDANT
TEN MILLION NINE SUIT.
Action to ReooUer the San Toy Sil0er
and Lead Group in Mer1co-

Summons and complaint In Supreme court ao-
ton involving 100000 Mexican mining prop
e~tv were served yesterday on Charles NJ Scii"oo'
ne steel man. one Of the several defendants IN
the suit The plaintiffs are Alfred S wineries
and Sidney A witherbee. brothers OF Mexico ny
who seek through the medium Of the courts 10
recover the San Toy silver and lead group
The Attendants besides Mr. Sclwab. are Morris
Carnegie q nephew Of Andrew Carnesle' JaiiieS
p Hutchinson. OF Chicago; John Sloan, OF Flt's-
t,rg. Thomas H. Bowles. formerly general agent
:, wisconsin Of the Mutual Life Insurance com
many. Matthew R D. Owings. ex-secretary OF the
Milwaukee Harvester Company: Richard X Brown
Of the Stock Exchange firm OF Norris Brown -
Co: waldo X Chase, o. Hartford, Conn q a,
renee Dilworth William X. Rellis. Donald D. dii-
lies D- Marshall R Ward, brother-in-law OF
,r. schUab. and Walter B. Wright John I.
Wright Frank W Lewis. Artemus n Haaley anu
" G Paxton. all Of Indianapolis
The complaint Of the Witherbees alleges that
certain auction sale of 2o3o.7S5 shares for the
pretended consideration Of $4,000. 70 the minor
a., stockholders. was "unconscionable, coHusNe
ana void and that the bid for the stock was not
IN good faith" IA
willard 4 Mitchell counsel for Nj Schwao' sala
Yesterday that neither Mr.. Schwab nor any OF
-. 5+e-as+e5 with him were in any way dis
+,,rbed by the action either individually OF as
stockholders Of the San Toy Mining Company. III
Af,-cheu added that Nj. Schwabs answer would De
fles in due tine and would set forth the facts
correctly, which. the attorney Salo were LiON ~
rectlz set forth in the complaint
The Witbe-bees claim title TO the property. which
IS in the state OF Chihuahua, under concession
fyom the Mexican government and say that they
have been the owners OF the mines since Decem-
her 1901 The. date Of incorporation According to
The complaint they were, prior TO January B. lSoS,
ov7ers Of 1324.e2o shares II the fully paid up ana
worcestershire capital stock Of the San Toy Mining
Con7pany which incorporated in Name In De
oerber. 1901 with authorized capital OF Sz'oeo-
oh
minority stockholders are credited with being the
owners Of 1885, shares
The complaint states that. on January ), 1908
the minority stockholders entered into an agree
1aent with the Witherbee brothers whereby they
sold their interests for sos 40s Is which was TO be
maid IS 600 al the execution 81 the agreement 5000
OF July / 1905. ana the remainder on or before
January ! following. The stock was put in escrow
IN Milwaukee pending the contamination Of the
agreement and for various considerations. the mi
raority stockholders extended the time limit TO
April Is. 1905
The brothers state that they employed James P.
Hutchinson 70 act their agent in selling the
stock and later engaged John Sloan 10 act their
agent in trying 70 find purchaser for the shares
OF the minority stockholders The complaint then
charges that Sloan approached the New York Stock
Exchange house Of Norris. Brown & Co. in which
Dr. Ward. thcy say, was interested, and TO him
and the other defendants disclosed the fact that
the minority stockholders interest IN the mines
could Re obtained for about Se6,500.
According 20 the complaint the defendants were
willing 10 entertain the proposition. but Sloan for
r1ulated a scheme 10 cheat and defraud the plain
rf~s and the defendant. Hutchinson advised, con
rived and participated in the said conspiracy, and
the other defendants. well knowing the premises,
either connived with or acquiesced in or partcl-
pated in the fruits Of the conspiracy.
The shares held by the Witherbee brothers, the5'
say were also put in escrow with the milwaukee,
institution with those CT the minority stockholders
and the complaint alleges that while the brothers
were in Mexico April i, 1916, on a court oroe1
The +r+el shares in escrow. 2O3o7s5 were sold At
ercrio, for re pretended consideration Of $500
10 the minority stockholders.
The complaint says that the defendants bought
from Charles N. Schwab two properties Of a SIM
lar nature. and added their stock TO the original
stock of the San Toy company. These properties
which are called worthless are named in the COM
rlaint as La Central and JuareZ.