The Birmingham age-herald. [volume] (Birmingham, Ala.) 1902-1950, 1910-06-27
FRAUD is CHARGED
AGAINST COMP ANY
Action to Gust Officers of West
ern Mining Company
ACCOUNTING Is ASKED
ACCOUNTING IS ASKED
Complaint Alleges That Some 5000
Stockholders Have Lost Not Less
Than $2,O0O,00O BY Mismnn-
agement of Company

New York, June 26.-(Special) -Amaz-
ing allegations of fraud and mismanage-
ment whereby some 5000 stockholders in
the Cobalt Central Mines company and
the Argentum company, a subsidiary cor
poration, claim to have suffered loss of
not less than 100000, are contained in
a complaint filed in the circuit court of
the United States today by the law firm
of Hitchings and Palloser.
The suit is brought by Hector M. Hitch
ings in behalf of himself and all other
stockholders of the Cobalt Central Mines
company, similarly situated, who may
elect to come In and contribute to the
expenses of this action against the Co
bait company, Thomas A. Nevins,
Thomas j. Maloney, Edmund F. Eldredge,
William C. Eakins and the Standard
Cobalt Mines, limited, the latter a Canad-
Ian corporation.
The object of the action is the busting
of Nevins and the entire Nevins faction
now in control of the Cobalt Central.
which is the holding company for Stan
dard Cobalt; an accounting on the part
of Nevins and those In charge of the
dllhiiS VI lu6 COf pOl dliOu, lllt Cdlll11S vi
a special meeting of the stockholders to
consider the charges against the officers
of the corporations; the election of new
board of directors and 1.-The initiation of
prosecution Of such proceedings, civil or
criminal against the officers or directors
as said stockholders may be advised
The litigation promises to be most Bit
ter The parent company is the Stan
dard Cobalt Mines, limited, a Canadian
concern, and the Wright Silver Mining
company These two concerns, in COM
pliance with the laws of Canada, hold
the title to the properties which now
are under the domination of the Cobalt
Central Mines company, a Maine corpor-
alton, with an outstanding capital stock
of 100000 shares, 81 par value. The
latest quotation for the stock on the
curb here vas 912 cents per share
The Cobalt Central company claims to
control TT acres of mineral lands in the
Cobalt mining district In Canada 1t paid
dividend of 2 per cent February |, 1909;
per cent May Is, 1909 and / per cent
August 10. The officers of the company
are Thomas A. Nevins. president; Thomas
J. Maloney. vice president and treasurer
and e. F. Edredge. secretary and assist
ant treasurer, all of whom are directors
with the addition of w. C. Eakins and
j. w. Young. s5H
In the action which has been begun 1t
is charged that In December, 1906, Ed
mund F. Eldredge, at that time a clerk
and bookkeeper in the employ of Thomas
A. Nevins e. Sons, purchased a mining
property in Cobalt, Ontario, for $4,000 or
whereabouts. Hitchings says that Nevins
and his assistants capitalized the Cobalt
Central company at 100000 and disposed
of most of the stock
A few days after the original deal the
Standard Cobalt Mines, limited, was
formed with capt. Il of 100000 fully
paid. 1t Is charged that of this capital
81 100000 was paid in stock to Eldredge
who later transferred it to Thomas A
Nevins. A few days thereafter the Cobalt
Central Mines company was organized In
Maine with a capitalization Of $4,000, 900,
and all OF its stocks save a small amount
was issued for the s1,6o0OoO Standard
Cobalt Mining stock.
Subsequently several minor concerns
were formed and still later the Argentum
company. The Argentum 1t is claimed
was formed by Nevins and his associates
1t Is millfon-dollar corporation W. C.
Eakins is its vice president and E. f.
Eldredge its treasurer. Like the. Cobalt
Its officers are at No. 81 Wall street
1t is charged by Hitchings and his as
sociates that the only excuse for the
fiotation of this company with a capital
of 81 100000 In 81 shares was a lease of
some property owned by the Standard
Cobalt COMPANY Nevertheless, it's stock
was sold broadcast through the medium
of the New York curb, and it Is charged
that some of the proceeds were used to
pay dividends accruing on the Cobalt
Central stock.
Rehearsing the causee leading up to the
suit, the complaint charges hat the
transfer of a6 acres of mining land and
properties acquired by Nevins for con-
sideration of $106.ooo to the Standard Co
bait Mines company was grossly in
adequate consideration for the delivery
of 10000 shares of the capital stock of
Standard Cobalt of the valve H. 81 GOO, 900,
and that the 10000 shares of Standard
Cobalt was a grossly inadequate con-
sideration for the transfer to Nevins of A.
0O0, 900 shares of the capital stock of Co.
bait Central Mines company"
| 1t Is charged also that such acts were
deliberate breaches of trust and of duty
on the part of the defendants to the suit
to said corporation both as directors and
officers of the Cobalt Central Mines COM
pany and as trustees and persons In
charge and control of Standard Cobalt
Mines, limited"
In the year 1907 1t is charged in the COM
plant Nevins disposed OF the 100000