Gilpin observer., 1910-01-06
DECISION RENDERED IN WAR DANCE CASE
Judge Cavender Reviews the Case and Finds for
the Lessees as Against Elliott and Others
Decision Gives General Satisfaction.

| District Judge Charles Cavender of I
Leadville, sitting for Judge Charles
Mccall of this district, rendered a
decision in the case of the War
Dance, Monday, in the court house
in this city. The case had been be-
| fore the court for nearly a year. A
final hearing was had in November
| last when the case was held pending
decision by the court which was
rendered, as stated, cn the above
date 1t is a most equitable decision,
giving general satisfaction and relief
to those most justly entitled for their
efforts and expenditure in developing
the War Dance into such a sensation
ally rich mine. The decision is of
such widespread import, the Obser-
yer cannot refrain from giving its
space to the document in its entire
ty:
This is an action brought by Mr..
Elliott to set aside the lease and
option on the War Dance and War
Dance Extension lodes, or, rather,
for the possession of the property as
against the defendants who claim 10
hold the same Under lease and option
the defendants having filed a cross
bill asking that their lease and option
be declared valid, and that the stock
holders of the company be brought
in and made parties, and that all
rights be settled in this suit; and
two sets of stockholders having come
in, some, holding substantially
twenty-three thousand shares out of
the total of eighty thousand shares,
asking that the lease and option be
ratified, and some, holding forty-nine
thousand shares, by answer and cross
complaint, asking that the lease and
option be set aside, and that the
rights of all the stockholders be ad-
justed in this suit, and Mr.. Elliott,
of course, as owner. l believe, of
six thousand nine hundred shares,
|, objecting to any action in the prem
ises except that his legal rights, if
, any he has, as the sole surviving
trustee, be declared.
The situation is an anomalous
one so far as my experience goes.
The stockholders and directors did
everything they possibly could that
was wrong, and nothing that was
right. To decide the case it was
necessary to go into the facts, which
ialI I,-
I'm 1880 Mr. Elliott, the plaintiff in
this suit, was the owner, individually,
of some seven or eight claims, in
!, clIding the War Dance and Wa-
Dance Extension. At that time he
met the promoters of the Russell Dis
trict Gold & Silver Mining company
. and entered into contract with
them whereby he agreed to sell them
claims, for the sum of s35 200, there
being an agreement that in case cer-
tain of the properties We're purchas-
ed and this company formed that
then, in addition to the s35 900 he
was to receive $4,000 in cash, or, at
the option of the promoters, one-tenth
of the capital stock of the company.
This option was taken up, the money
| paid to Mr.. Elliott, by the promoters,
and in March, 1880, The Russell Dis
trict Gold & Silver Mining company
was formed and Incorporated under
the laws of the State of Colorado and
the property conveyed to it. The
articles of Incorporation provided,
among other things, that the affairs
of the company should be under the
control of five directors, and that
the main office of the company
should be in Gilpin county. but that
a branch office might be located at
Wilkes Barre. Pennsylvania.
Later, and | think in about May,
1880, the company elected to carry
out the promoters agreement with
Mr.. Elliott, with reference to his
$4,000 or his stock. and notified Mr..
Elliott that, in accordance with the
terms of the original contract, he
was entitled TO l.10 of the capital
stock of the company and was the
owner of the same. to-wit: Eight
thousand shares, subject to debts,
| expenses. and assessments to be
| made by the company.
AT the time of the sale of the
property by Mr.. Elliott. the War
Dance was developed to some extent,
and there was some few thousand
dollars worth of ore in sight. The
company started operating the prop.
erty, and soon this ore worked out,
| and thpy found M pthor hpdiay On