Los Angeles herald. [microfilm reel] (Los Angeles [Calif.]) 1900-1911, 1908-06-18
JOHNNIE CON.
IN NEW ROLE
DIRECTORS TO ISSUE $4,000
IN MORTGAGE BONDS
SOME STOCKHOLDERS MEET AND
GIVE APPROVAL
Badly Manipulated Mine Seeking New
Life by Trust Deed Process.
Expert ls Soon to
Report

Johnnie Consolidated, whose troubles
have been history on the Los Angeles
Nevada stock exchange for many
moons, occupied the exchange forum
after call yesterday afternoon. Inc
stockholders (many of them women
and others met to receive q report from
the directors, and ended by being told
that they had no voice in the plan pro-
posed by the directors, but that the
sense of their convictions was wanted.
The direstors purpose to issue, under
a trust deed, $4,000 in first mortgage
gold bonds, bearing per cent interest
and payable in three years or redeem
able earlier at any interest paying date,
to discharge an indebtedness of $4,000
and enable work on the properly 10
continue. On motion of Edward Ford
this sense was expressed, altnouSH
President Wagy, answering a question:
said the directors, under the bylaws
had full power to issue the bonds WITH
ont consulting the stockholders. He
declared the new directors, VINO nave
been in possession only short time,
believed in letting the stockholders
know everything.
1T was explained that If the debts and
labor liens were not met at once the
mine would go into the hands OF re-
ceiver, which would be ruinous TO the
stockholders, and that by bono issue
these debts could be met and work
continued upon the drifts and levels
where high grade ore was believed to
be in quantity sufficient to make the
mining profitable. 1t was further ex-
planned that the process of development
required the handling of much waste
with the ore, and that 1t was not pront-
able.
Expert to Report
Carl Anderson is now making an ex-
animation of the mine and its equip
ment, and is to make a report be-
tween July and 10. Some at the meet
ing thought it would be well not to
issue the bonds until after this report,
but this was met by the statement that
the property would be in the hands OF
a receiver before he could report. 1t
seemed to those present that the bond
issue was the only salvation of the
stockholders. But it was freely admit
ted that the success of the scheme de-
pended wholly on the finding of profit
able ore bodies, which it is thought the
exploration has reached. President
Wagy said these bodies showed high
one day and low the next, so that 1t
could not be promised that rich ore had
been encountered. 1t was also sug-
gested that work on other property
might be remunerative.
The last cleanup from the Johnnie
mill, June 10, which is supposed to be
1000 tons capacity, showed a brick val
ued at $500 by estimate, but which was
now on the way to the mint. This
bullion came from 1915 tons OF ore ana
represents $3.05 ton If the mint veri-
fies the estimate.
Bonds Are Offered
Accordingly, the bond subscription
was opened at once at par, and e. h
Foster offered to take $4,000 of the
bonds whenever $4,000 was subscribed.
Foster is interested with the new re-
gime and is a heavy stockholder. Sub
scriptions, however, were not prompt.
Only 100000 of the bonds will be sold
now, the remainder being held in the
treasury.
That Johnnie has had it's share of
troubles was the burned of the meeting.
D. G. Doubleday was charged with
manipulating it last for stock job
bling, in which many small invest
ors were trimmed" and the new
directors came into possession of an
empty treasury and a debt of $4,000.
It has a plant that is said to have cost
S125, 900, and which is, at it's present To-
cation, the principal security for the
bonds, unless q mine is developed.
Secretary Atkinson stated to the
meeting that Doubleday owed the COM
pany 1851, but that he had. left June
( and had not since been seen; also
that the Globe-Crown Point mine owed
for ore milled and that the Johnnie
plant seemed to have been good thing
for the Crown Point, as it furnished
the machinery for getting out the ore
of that mine. milling it and then being
its easy creditor. This was explained
bv the statement of Director Thomas,
who was frozen out during he Double
day regime, by saying that Doubleday
was on both ends of that TRANSACTION.
Doubleday's Notes
Thomas also said since he had been
returned to the board he had succeeded
in making Doubleday give up $25'OU1
note which represented an alleged in
debtedness which, Thomas said, never
existed.
Johnnie has been continuous per
former on the stock exchange for
months. 1t has been battered steadily
down until now it is a cheap gambline
proposition at a price of 1A to "a
There were both bulls and bears at the
stockholders meeting, and the bears
seemed to think that if Johnnie Is a
mine it has not been discovered. The
others thought it had been ruined by
manipulation, and that honest effor'
with it would develop rich ore.
-sD-~-S-----