The Goldfield news. [volume] (Goldfield, Nev.) 1904-1911, 1908-03-14

(By William p. De Wolf. Special Repre-
sentative OF The News.)
Manhattan. New. March 12.-Now thas
title is practically quieted to that por-
ton of the Consolidated estated which
for nearly two years has been a source
of revenue to the lawyers rather than
to the rival claimants. the management
is entering upon a campaign of develop
ment of a magnitude u~nequalled in the
history of Manhattan. This increase in
mining energy is directly due to the re-
Gently hande down decision in the dis
trict court in the suits of the Liberty
and Justice and Granny Mining com
panies VS.. the Manhattan Consolidated
Gold Mines company of Nevada. where
by the defendant company is to all pur-
poses awarded the ground in conflict by
the ramihcations and specifications of
a special defense unique in the history
of mining Jurisprudence. The said deci-
sion is of Importance not alone to the
parties to the suits in question. but
likewise has a distinct bearing upon
foreign corporations and their right to
maintain suits in Nevada courts. The
salient points in the recent controversy
arc az follows:
About is months ago the Manhattan
Consolidated company made application
for federal patent for the Silver Pick
No. l claim and was Immediately ad-
versed by the Liberty and Justice and
Granny Mining companies. who asserted
that the silver Pick claim was in conflict
with their holdings; ultimately they
brought suit in adverse. p~etitioning
court that the ground in dispute be
decreed to them. Both the plaintiff
companies are foreign corporations, be-
ing Incorporated under laws of South
Dakota. In answering the suits. the de-
PENDANT company. after laying claim to
the area in conflict, raised a separate
defense. Ascertaining from the charters
of the plaintiff companies that they were
not. in express terms. granted power to
do business in the state of South Da-
kota. the attorneys for the Consolidated
company advanced the defense that, the
plaintiffs: being without legal status In
their parent state, could not with justice
claim the right to do business elsewhere;
tina having no legal existence in South
Dakota, they had no legal existence any
where.
COMPANY OUT or COURT.
Being but a half-formed nondescript
calling itself a corporation of South
Dakota and without power or right to
exert its corporate force or do bust
ness in the state of it's nativity. the de-
tense asserted that the plaintiffs could
not assert in Nevada an existence and
status not allowed by the parent state.
In other words: that one state could
not send forth corporations vested with
-s-xA- - - A.. Ar4thnr ctota
when 1t denied to such corporation the
right to transact business in the state
where Incorporated. Judge O'Brien sus-
tanned the contentious of the defendant
company. thereby debarring the plaint-
MS suits, unless the decision is reversed
by the higher tribunal. The general
%concensus of opinion among court OFF,
Gals and attorneys is that the defend
ants points are well taken and that
they will stand for all time as a pre-
cedent in cases of like character.
Immediately following the rendering
of decision the Consolidated company
entered upon the comprehensive develop
ment campaign already referred to. A
large working corps, divided into three
shifts, is now on the job. and additional
men are to be added as opportunity
presents itself for their being utilized
to advantage. The immense and rich
Consolidated ledge is being stopped at
the 100 and 2o0-foot levels. and every
pound of rock broken down holds a per
cent Of gold which assures 1t being re-
duced at profit. The present era of pro-
duction marks the beginning of a steady
reduction of ore at the plant of the
Manhattan Ore Reduction e. Refining
company that is to extend over a period
of eight months. Blocked out in Con-
soIidated workings is a tonnage of suf-
icient bull and value to pay for the
entire issue of Consolidated stock at