The evening world., 1908-11-30
Sues SChWab to Recover
$lO,OO0,000 Silver Mine
Continued from First Page)

tinal. and after mailing notice of the
sale to the Witherbees. sell the stock
to the highest bidder,
Say T me Was Extended.
Thereafter from time to time"
rea9 knoi 5hs compliant, the MINORITY
ton duly agreed to extend the time TO
April Is. 1895
The complaint next alleges that the
Witherhees engaged James p. ITutchin-
sales OF stock and other confidential
work. and that they also hired John
sloan as their agent TO find purchaser
for the shares OF the minority stock
holders. under the agreement OF Jan.
!. 1903. and release the stock held in
escrow by the Milwaukee Trust Com
pany.
The Witherbees charge that Sloan
approached the New York Stock Ex-
change house of Morris, Brown & Co,
in which DIR, Ward was financially in
ter r and to ihsm and 70 az,
Giles. Dilworth and Mitchell disclose
the fact that the minority stoCkhold-
ers interest In the san Toy property
could be secured for less than sl6o,C90
The Witherbees were put off from
month to month, being told that Mr.
Schwab had just sailed for Europe" un-
til 1t appears that they went 20 young
the Lake Superior district. who offered
to finance the purchase of the minor
ity stockholders.
Charges a Conspiracy.
The Witherbees claim that they for
warded to each Of the so-cailed minor
,ty stockholders" this new proposition.
and that they received by mail writ
ten acceptance from Me ssrs. Bowles.
Owings. the Wrights, Lewis. Hadley and
Paxton.
Thereupon they went to Mexico. and
during their absence. on April Il, 1906,
on an order from court, the total shares
in escrow of 2,030,735 were sold at auc-
ton for the pretended consideration OF
5000" to the minority stockholders"
The complaint alleges that this sale was
''unconscionable, collusive and void. and
the bid for the stock was not in good
faith"
Since the pretended sale" the COM
plant then makes this further aIlega.
I'm order to strengthen their hold on
the stock, the defendants formulated
sa.r eT "ohsme or ooSspirsey against "a ' sa,
plaintiffs, under the terms whereof
sohwab in the name of Mitchell &C.
CURED some title to or claim upon two
little or no value, known respectively
as La Central and Juarez, and sold the
Same to the San Toy Company 70,
sscS the defsndants for Hf the I pup 1r
causing the San Toy Company to In.
crease the amount of its total capital
stock to f7,OOO.OOo; and the defenden,s
Brown, Sloan. Beggs, Dilworth. Hutch
inson, BELLS. Chase ard Carnegie, nire
Of the ten directors Of the company
with knowledge of the facts and with
out any investigation as to the value
OF the two properties, voted in favor
Of and carrying out said fraudulent
In conclusion the complaint. asks for
judgment that the pretended sale OF
stock held by the milwaukee, Trust
Company be declared void, that all OF
the defendants render an accounting
tn thair hands. and the same eT he s sn!o
rendered to the Witherbees: that the
increased capital stock issued 10
Mitchell for the worthless La Central
and Juarez properties" be returned Tor
cancellation; that the defendants be re-
strained from making any sales Of San
Toy stock, which shall be deposited in
the hands of receiver during the pen
dency OF the suit and that the property
be turned over to the Witherbees on
payment Of the 1Sl,s5l6 Sc under the agree
ment of 1908.