Gilpin observer., 1909-12-02

| which has been pending since june
1st, 1908, at which time A. G. Elliott
who claimed to possess a one-tenth
interest in the property applied to
the court for a receivership, came up
for hearing before Judge Chas. Cav
ender Of Leadville, sitting for Judge
Chas. Mccall. Some of the best
known lawyers locally and in Denver
had been retained to represent the
litigants and the court room fairly
sparkled with the brilliancy of the
legal lights. Law books until it look
ed as though the libraries of Central
and Denver had been exhausted, were
unloaded and conveniently arranged
| beside the legal giants for ready re-
| ference.
The War Dance case is what might
be termed three cornered fight.
There is A. G. Elliott, the plaintiff
against Rue and Chas. Manbire, Mike
and John Klais, C. o. Richards and
Neil Mckay, lessees, defendants, and
Mrs. Hutchinson, widow of j. C. Hut
Crimson, and DR.. and Mrs. Schaffle,
stockholders, against both the plain
tiff and defendants.
The attorneys involved in the legal
battle are G. S. Redd, A. NJ. Steven
son, Daniel Prescott, all of Denver,
| for the plaintiff; Judge w. C. Mat
thews, Of Central and C. w. Water
man of Denver, for the defendants,
B. NJ. Malone, Denver, for Mrs. Hut
Crimson and DR.. Schaffle, and Chase
Withrow, of Central for a number of
the stockholders desirous of having
the lease held by the lessees carried
out
At the opening of court Monday af-
ternoon, attorneys for the plaintiff
made their statement to the court
and outlined their position. Attorney
Prescott opening for the plaintiff said
the Russell District Gold & Silver
Mining company was incorporated un-
der the laws Oh the state of Colorado
March 10th, 1880. The stock issue
was 10000 shares at a par value of
s25.00, giving the company a capitali-
zation of 50 ,OOO, 900. OF this according
to the minutes of the meeting of the
company A. G. Elliott was to have
one-tenth. The bylaws of the COM
pany provided for directorate of
| five members, but at the second meet
| ing of the directors the number was
increased to six and A. G. Elliott was
made the sixth director. 1t afterwards
appeared in the progress of the case
that the number of directors had been
| increased without the amending Of
the charter, which was illegal, and in
giving a decision on a point that was
raised later in the trial the court an
| nounced that Mr.. Elliott's election
| to the board Of directors was void
and that he could not be considered
a director, nor could T. ]. Chase who
was made a director January 81, 1891
year after the corporation had ex.
pired.
On January 81. 1891, a meeting of
the two or three remaining members
of the board of directors was held
and T. J. Chase. representing Anna
G. Brown, widow Of James Brown,
was elected director. At a subse-
I quent meeting held on February 18th,
1900, a deed was executed conveying
the property of the Russell District
G.. & S. NJ. company to 7. j. Chase
and j. c. Hutchinson, who were act.
ing as trustees for the benefit of the
stockholders of the company.
Attorneys for the plaintiff in con-
cluding their opening remarks to the
court contended that under the
action Of the meeting held Feb. 10th,
1900, Chase and Hutchinson could not
legally give a lease and asked the
court to put Elliott in charge Of the
property to wind up the affairs of the
corporation according to law; also
saying that the defendants wanted a
trustee appointed to carry out the
provisions Of the lease and not to
settle up the affairs Of the corpora.
ton.
| Attorney Waterman opened for the
defense and contended that Elliott
was never legally director Of the
company; that in reality he was
never so much as a stockholder; that
while the stock book showed that
stock had been made out to Elliott
1t had never been signed by the pres.
ident of the company. had never had
the corporation seal affixed. and had
never been torn out of the stock
book and delivered to Elliott. The
minutes Of the company showed he
| was to have received a certain