Bisbee daily review. [volume] (Bisbee, Ariz.) 1901-1971, 1910-07-31
ANSWER FILED
IN THE GREENE
COPPER CASE
General Denial of Charges Is
Made by the Directors Of
the Greene Consolidated
Copper Company

Boston-The Greene Consolidated
Copper Co. W. d. Thornton its pres
ident. c. ID. Fraser p. /. Foster, J.
W Allen and F. r. Searle, directors
in the corporation, have entered gen
eral denials to the suit brought
against them and Thos. F. Cole, John
ID. Ryan. ct al. in the New York Su-
preme Court by two minority stock
holders Of the Copper Co, Berton A.
Garrett and Max Sand. The suit al
legged conspiracy. wrongful waste of
assets, the abstraction Of $4,000, 900
from treasury funds and made other
sensational charges. The defendants
also ask the dismissal OF the com
plant together with costs of the
action.
The answer makes clear the fact
upon information and belief. that
dividends upon the capital stock Of
the Greene Consolidated Co. which
were paid during and prior TO the
year 1906 were not duly earned. This
was before the Cole-Ryan manage
ment secured control and was during
Col Green's regime as president. Up
to July 1. 1906. the company paid to
stockholders S4.s94,4 400, but none has
been discussed since.
The compliments alleged that the
company produced in the fiscal year
ended July 81, 1906, 55,s43.73s pounds
of copper, but defendants answers
that there was no more than 46.026.-
93S pounds made during that period.
The extravagant figures which
Colonel Greene inserted in his last
annual report placing a value of
s73.000.000 upon the assets of the
Sierra Madre Land & Lumber Co.
and upon which the compliments
based a portion of their suit, togeth-
er iwth allegations of 100000. coo Of
ore reserves are refuted by the de-
PENDANTS who deny that ore reserves
are or ever were worth anywhere
near this figure The Greene Co.'S
investment Of s16.291,1s5 in plant.
mines, ETC.. is also denied.
The assertion that Cole and Ryan
/ control Greene Consolidated is de-
MED as is the allegation that fraud
was used in bringing about the mer-
| ger of the company into the Greene
Cananea Copper Co. OF the 200
shares comprising the capitalization
of the Cananea Consolidated Copper
Co. operating the Greene properties,
but 1913 shares are held in the
Greene treasury. The charter Of the
Greene Co., secured in West Vir.
GINA, does not permit the company
TO carry on a milling and reduction
business; furthermore, the Greene
Co. owns no mines. The charges
that Cananea Central was an undevel.
oped property and that the Greene
stock at time of merger, was worth
more than Cananea shares, are also
denied
The complaint alleged that the
Cananea Central property was held
only on option while the purchase
price did not exceed $500, 900; both
of these charges are denied. The
defendants also answer that Can
anea Central had a market value Of
over $2O.OOQ.OOO at the time of ex
change.
The defendants deny that success
full mining operations were carried
on. or that some Of the largest ore
bodies in the world were opened I'D
or that dividends were duly earned
But for necessary expenditures fol
repairs and construction to plant and
property Of the Cananea Consolidated
Co, they answer, the property woult
not up to this time show any points
Cole-Ryan control of Greene-Can
anea and Cananea Central is denied
except in the sense that all stock
holders are associated in the contro
of a corporation Regarding the di
version of property by Greene Co
10 Cananea Central without ade
Guate compensation" the defendant
, say that about July Is, 1906, tn,
, Bryan mining claim. a part Of tn,
claim known as Massey No. 2. an,
two mining announcements known a
, SECURE and Square, were sold 4
Cananea Central by Cananea Consol
idated for $4,000 GOO. 900 share
Cananes CentraD but this was befor
formation of Greene-Cananea Co. an
prior to interest of Cole and Ryai
in Greene-Consolidated
Control of Green Consolidated wa
q never held in one hand. until Greene
Z Cananea secured it. except in 1906
after formation when Col Greene ha
IL for a short time. Fraud in cor
nection with the sale Of 81 per cen
capital stock of the Sierra Madr
Land & Lumber Co. is denied as
D also the allegation that default o
I this company's bonds was preme'
e itated by any Of the defendants.
:. The charge that a report ths
e Greene had operated in 1867 at los
3 Of over 100000 is denied; tn
shutdown In December, 1907, was e