The Detroit times., 1908-04-21
OETRO|TER RS ARE
IN TERESTED IN
BIG SUIT
MINES IN SANTA BARBARA, MEEK
CO.. SOLD TO KINDS CONSOLE
DATED SUBJECT OF LlTAoA.
TON AMONG FORMER OWNERS.


bara, Mexico, last week. returned with
the conviction that the properties and
the management at the mines were all
right II the internal affairs of the
company were all right. The majority
of the party reserved their decision
with reference to investing-with the
exception of nominal subscriptions
covering perhaps the cost of the trip
to the company-until they could have
a conference with President Howell
Kinds, OF Cleveland. which has been
appointed for Saturday evening OF this
week at the Hotel fuller.
In the Cleveland Plain Dealer or
Monday appeared the following spe-
cial from Findlay, Ohio. upon which
the discussion OF Saturday evening
will doubtless center. The richness
OF the mines is not In question; In
fact. 1t seems to be their recently-die-
covered value under modern mining
methods that has led to the filing OF
additional facts in the litigation pend
ing between the former owners OF the
mines:
Romance, intrigue, suffering. hard
ship, victory and defeat are all bound
up In the big mining suit now pend
ing In the courts OF Hancock county
In which the plaintiffs originally ask
ed for the accounting OF SO ,000. 900 and
now come into court and claim a
share In the amount OF S5.000.000 ad-
ditional.
THE case was originally filed by
the law firm OF Ross & Kinder, Of
this city. in behalf OF Alfred Fl.
milf ~ ID
mann, Of Fremont, plaintiffs. against
G. G. Gillette, formerly Of Fostoria,
but now Of Los Angeles. CAL, W. e.
Matthews and w. H. Picking, both
OF Bucyrus, defendants. 1t charges
them with conspiring to defraud
their co-partners and asks for an ac-
counting OF 100000, and that
receiver be appointed to wind up Tho
business Of the mining company in.
volved
About three years ago G. G. Gil
lette of FOstoria, a mining broker,
visited Santa Barbara and was at
once attracted by the richness of the
ore taken from the ancient mines. A
railroad was building to Santa Bar
bara and he was quick to see that
the property would soon become very
valuable. He secured an option on
the mines and then returning to the
United States sought to interest cap
ial to develop the property. He sue
ceeded in interesting friends in Kan
sas,. Ohio, Illinois and Tennessee, A
copartnership was formed In which
the different interests were repre-
sented by units, instead OF stock
certificates In a corporation. There
were twenty units, each unit repre-
senting $1,000 In value, and each
party to the partnership who paid
in $1,000 was entitled to q one.twen-
tieth interest In the company.
This company took up the option
held by Gillette, calling for the pay
ment of $250,000 and made a cash
payment of $4,000, the balance be-
ing divided into three payments, all
due within the next year. The
plaintiffs In the case each paid In
their $4,000 along with the others
and from time to time were called
upon for additional sums. The COM
pany then employed Gillette, Mat
thews and Picking to manage the
property and paid them each a sal
airy. The mine produced ore, but It
was said not to pay operating ex-
penses and large sums OF money
were borrowed. Soon the company
found itself heavily involved and OH
representations made by the man.
ayers they were directed to find
purchaser. This they did In the per-
sons Of Howell Kinds of Cleveland and
r. w. Cavenaugh of New York. They
reported a sale of the property to
these parties for cash consideration
Of $4,000 In the notes OF the Kinds
Consolidated Mining Co.
After the settlement was made the
plaintiffs claim they have discovered
that the property was sold for $780,
900 cash, 100000 in few weeks and
100000 stock In the Kinds Consol-
idated Mining Co. 1t Is for the ac-
counting of this 100000 that the
original petition was filed.
THE defendants, it is said, have re-
fused to state the amount they re-
ceived and claim that all over the sum
of $4,000 was for another property
adjoining the Santa Barbara claims.
In the supplemental petition filed yes.
terday the plaintiffs claim to have
discovered additional facts and now
WANT hu oItOuhtAh6 Oh tuC DdoiS I'll
100000 additional, claiming that
the mines were sold for that much be-
low their true value.
The mines themselves, which have
caused all the controversy, are said to
be among the richest In the world.
Since acquiring the property the new
company has installed all new ma
chinery, built three miles OF standard
grade railroad and an overhead tram
way The present company employs
300 men.
THE suit Is said to be the largest
one ever brought in Ohio.
In response to an inquiry by tele-
phone from The Times Tuesday morn
ing, Frederick G. Becker. Of Cleveland.
treasurer Of the Kinds Consolidated
Mining Co., said the suit was merely
squabble among the former individ-
ual owners of the properties and In
no sense affected the present corpor-
ate ownership or operation OF the
mines. Mr.. Becker said the talk
about receivership was mystifying
to him, but savored strongly OF bluff"
In his opinion the Findlay litigants
had no basis for beginning action.
STARR SAYS NEGRITOS
ADE DVCMTEc, CnTvcrNrc