The Seattle star. [volume] (Seattle, Wash.) 1899-1947, 1909-10-02
MORTGAGEO HOME TO
BUY MINING STOCK


(Cencluded.l
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tain amount 81 assessment work
must be done before The winter "
over. and by preventing a sale OF
the properties under a recelverahip
order by holding the same up until
late In October. II will be impos-
ssble 10 do this work. and In that
event the properties will revert 60
the government. when they may be
relocated BY the Thrnsher and Flu.
hart people and the company and
small stockholders will lose all.
This IL the story OF but hundreds
~ other mining companies. In
which hundreds Of stockholders
suddenly awaken TO find that they
have pat all their savings In n
concern that Ia In the hands Of
receiver.
Company Organized.
with the Lakeside group Of
mining claims aa Its holdings. the
Standard Reduction a Develop
meut company WAS organized Ia
1905 by s, =. Fiuhnrt. Charles O.
Thraaher. Fanny ThraAher and -
K aud w. II. Fiuhart, all Of 1926
THIRD av. ". They were tho In.
corporators. and Il IL claimed Of
tho 81 .000. 900 worth OF stock issued
thoy retained for themselves the
controlling interest The remain.
der was first offered 20 distant
relatives and then 10 the public at
large. and II was 20 buy this stock.
which In now said 10 be- practically
worthiaaa. and which will without
doubt be completely 30 II tho min.
ing claims ara lost. that Nellie
Moore mortgaged her home.
Stock was sold In every locality
that gave the least assurance OF
prosperity. Thirty thousand dol.
lara worth was placed In England.
and II was all done with the prom
iBe that dividends Of 30 per cent
would be paid soon. and dividends
Of 600 per cent within two years.
Much Of Stock Sold.
The stock was first placed on the
market for one cent per share.
and Was gradually raised in price
until last year the price asked was
so cents per share. Counting the
10000 shares held by the con-
trolling family. there only remains
is0. 900 shares to DO sold.
But % all OF the ass stockholders
none have invested more than
$4,000. All of the subscriptions
have been ia small amounts from
class OF people like Nellie Moore.
who could III afford to take any.
The whole list OF stockholders
does not contain one name OF
man Of wealth. and the great ma
Iority OF the amounts subscribed
are under $1,000.
The company had a mining en-.
gineer on the ground for Just
three months. and II In asserted by
the minority stockholders that he
was employed for no other pur.
pose than to sign n report which |
was TO have been sent prospective |
eastern investors.
Mere Boy In Charge.
The mining engineer. while he |
was employed. was under the |
superintendence OF Il. u. Fluhart. !
a mere youth, hs the latter was the /
company's resident manager. II
was he who looked after the in.
stalling Of the little mining ma,
chInery that was installed and II
vas under his direction that all |
improvements were made on the |
property.
Things went from bad to worse. |
aud finally the creditors began /
getting so insistent that the fur.
Their existence OF the concern be-
came jeopardixed Part of the In
borers employed on the property
we're paid off in stock. TO the ex.
tent OF sil 900. but others would
not agree to this arrangement and
placed their account In the hands
OF Thomas II. MacMahon. an at.
torney with offices in the Arcade
building, for collection.
Secures a Receiver.
Fearing that one Of the creditors
might call for receiver, James
Hume, connected with the Thrash.
err Fluhart family, filed n claim OF
s792.s5, for alleged labor perform
ed. against the company. and, de
cIaring the company to be insolv.
ent, asked that n receiver be ap-
pointed. Chas q. Thrasher, Fan
ME Thrasher, j. X. Thrasher. the
minor son of Chas q. Thrasher;
8. 8. Fluhart, w. II. Fluhart and
u. u. Fluhart all brought forth
sworn affidayits 10 tho effect that
they were acquainted with Hume's
request for n receiver. and that
they were In favor OF the appoint.
ment OF A. w. Mcintyre 10 that po-
sition. The same men claimed
that they were creditors of the
company for different amounts, ag-
gregating s4.24s.16. Mcintyre IL
the law partner Of Henry Mclean.
tho attorney who represented |