The times dispatch. [volume] (Richmond, Va.) 1903-1914, 1910-06-26
Cobalt Mining Proper
ties Juggled for Mil
lions of Dollars.
ACTION is BEGUN
FOR ACCOUNTING
Through Manipulation OF Stocks
1t Is Said That Stockholders
Have Been Made Victims Of
Gigantic swindle-Litiga-
ton Promises to Be
Bitter.
tspecial 10 The Times-pispatch.l

Especial TO The Times Dispatcf.1 :.
New York, June 25.-Amazing ale
cations of fraud and Encouragement
whereby about 5000 stockholders in
THE Cobalt Central Mines Company and
the Argentum Company subsidiary
corporation, claim to have suffered a
loss of not less than s2,0o0,0oo, are
contained in complaint filed in the
Circuit Court OF the United states to-
day by the law firm of Hitchings d
Palliser. of 100 William Street.
The suit is brought by Eector M.
Hitchings in behalf of himself and all
other stockholders of the Cobalt Cen
trail Mines Company, Similarly situat-
ed. who may elect to come in and con-
tribute to the expense of this action"
against the Cobalt Central Mines
Company, Thomas a. Nevis, Thomas j.
Maloney, Edmund +. Eldredge, VIM. c.
Eakins and the STANDARD Cobalt Mines.
Limited, the latter Canadian corpora
ton.
The object of the action is the GUST
ing of Nevins and the entire Nevins
faction now in control of Cobalt Gen.
trail which Is the holding company for
Standard Cobalt, an accounting OH the
part of Nevins and those in charge of
the affairs of the corporation. the call
ing of special meeting of the stock
holders TO consider the charges against
the officers of the corporations; the
election of new board of directors
and the Initiation or prosecution of
such proceedings. civil or criminal.
against said officers and directors as
said stockholders may be advised"
Promises to Be Bitter.
The litigation promises to be most
bitter. The parent company is the
Standard Cobalt Mines. Limited. Can
adam concern. and the Wright Silver
Mining Company. These two concerns,
in compliance 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 corporation with an outstanding
capital stock of s5.0o0,000. shares 81
par value. The latest quotation for
the stock on the curb here was 0 1-2
cents per share.
The Cobalt Central Company claims
to control III acres of mineral lands
in the Cobalt mining district In Cana
da 1t paid a dividend of 2 per cent
February /, 1909; / per cent. May 15.
| 1909. and 1 per cent. August Is. The
officers of the company are: Thomas a.
Nevins. president. of East Orange, N.
j.; Thomas j. Maloney, vice president
| anu AttdSuiCi Va ebHSc, N. dliu
| f. Eldredge, secretary and assistant
| treasurer. 81 Wall Street. all of whom
are directors, with the addition of W.
c. Eakins, Arlington, n. j.. and j. w.
| Young, Cobalt Ont.
In the action which has been begun,
| i, Is charged that in December. 1906,
Edmund f. Eldredge. at that time a
| clerk and bookkeeper in the employ of
| Thomas A. Nevins & Co., purchased
mining property in Ontario from two
men named Farah and Murphy for
slo5.ooo, or whereabouts.
1 Hitchings says his information is
that $4,000 was paid: that Nevins and
| his associates capitalized the Cobalt
| Central Company at 100000 and dis
| posed of most of the stock.
New Company Formed.
A few days after the deal between
Eldredge and Murphy the standard
Cobalt Mines. Limited. was formed
with capital of $2.O0O.OOo fully paid
1t is charged that of this capital, ST.
100000 was paid in stock to Eldredge
| who later transferred 1t to Thomas A.
| Nevins. A few days thereafter the
Cobalt Central Mines Company was
organized in Maine with a capitalize.
ton of $5,O00.000, and all its stock save
a small amount 1t is charged, was Is.
sued for the sl,6o0,0OO of STANDARD
Cobalt Mining stock.
Subsequently, several minor con.
Germs were formed, and still later the
Argentum Company. The Argentum
it is claimed, was formed by Nerins
and his associates. It is a million
dollar corporation. w. c.. Eakins /:
it's vlce-president and Z. f. Eldrcdgt
its treasurer. Like the Cobalt Central
It's Offices are 1t 81 Wall Street.
1t IS charged by Hitchings and hi:
associates that the only excuse for thu
fotation of this company with a, cap
ital of s1,ooo,00o in one dollar shares
was lease of some property owned
by the Standard Cobalt Company
J, Nevertheless, it's stock was sold broad
cast through the medium of the New
York curb and II Is charged that som
of the proceeds were used to pay divi
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