Mohave County miner., 1911-12-02
3OO$ Prospect Cost
Nevada Utah Is, ,OoO$.

Henry Melville as receiver for the Ne
vada- Utah Mines & Smelters Co. be-
fore Judge Hough in the United States
District Court on the petition of a
creditor, allegations showing evidence
of fraud against the way the affairs of
this company have been run in the
past were made yesterday by those
who have begun an investigation how
ex-president Woolley sold vslueless
claims to the company for 15,0O0S
which he bad himself bought for a
paltry 3OOs.
The appointment was made On the
application of C. J. Caughey, at one time
secretary of the company, with claims
of upwards of 2,OOOs for services rem
dered. 1t is stated that the corpora
tion has committed an act of bank
ruptcy in that it admits its inability
TO pay its debts and its willingness to
be adjudged bankrupt.
There is no statement of assets for
liabilities in the petition filed by Mr..
Caughey, but it is stated that there
are unsecured claims of 25,000S and Sc
cured claims of I25,000S. 1t was also
alleged that the corporation has con-
trolling interests in FIVE subsidiary
companies, including the Day-BristOl
Consolidated Mining Co., and holds
substantially all the stock of the
Phoebe Pacific Railroad Co. 1t is fur
ther alleged that Ernest r. WOoley,
president of the corporation, executed
a note for l25,OOOs, payable TO Z. l..
Godbe, who transferred il TO the Mer-
chants Bank of Salt Lake City, which
now threate ns to foreclose the note.
Judge Hough granted permission for
the petitioner to apply for ancilliary
receivers in the States of Nevada and
Utah and also issued a restraining
order forbidding the sale by the Mer-
chants Bank of Salt Lake City of the
note transferred TO 1t by GodOe.
The step of putting the company in
TO the hands of receiver was taken
reluctantly, but it represents the only
means available TO straighten out the
tangle into which the affairs of this
concern were thrown into by Ernest R.
Woolley, the former president of the
company. The Grand Jury in New
York has already returned an indict-
ment against Wooley on a charge of
alleged em bezzlement of l5.000S of the
company's money. The preliminary
investigations which have been made
by attorneys acting for the sharehold-
ers in this matter shows that one of
the most scandalous attempts of mis-
management are alleged TO have been
committed to wreck the affairs of the
Nevada-Utah Co.
Those who have made a preliminary
investigation of the affairs Of this COM
pany already charge that Woolley sold
undeveloped claims to the Nevada
Utah Co. at fancy prices and in other
ways placed the affairs of this COM
pany in a condition that was jeop-
ardizing the rights of all the share
holders.
The interests who recently entered
into this proposition are not going to
leave stone unturned to have full
restitution made the shareholders, and
the appointments of a receiver was alb
solutely necessary to accomplish this
step.
In the charges against WOoley it is
alleged he represented to the company
that some additional properties which
it was necessary for the company tC
own cost him 15,0OOS and that he re
ceived that amount of money from the
company on account of the purchase
1t is alleged further that other officer:
of the company looked into the matter
later and found that the amount paiG
by Woolley for the properties was il
the neighborhoOd of 300S.
In the latter part of July or early il
August Woolley resigned the presi
dency of the Nevada Utah company
and at the same time several director.
resigned with him.
Those opposed to Woolley in the di
rectorate of the company alleged sons
of these designations were in pur
suance of an arrangement between
Woolley and New York house, b,
which he was to turn over the control
of the board of directors as a sort o
added security for the purchase from