White Pine news weekly mining review. [volume] (East Ely, Nev.) 1910-1920, 1911-02-12
SURFACE RIGHTS
OF ELY CENTRAL
NOT TO Be SOLD
PETITION OF RECEIVER TO DIS
POSE OF DUMPING PRIVIL-
EGES TO NEVADA con. Is DE-
MED BY JUDGE COLEMAN.

Judge b. w. Coleman on Friday
morning denied the petition of Re-
ceiver Millard of the Ely Central
Copper Company to sell to the New
ada Consolidated Copper Company
the surface rights on 58 acres of the
former property for dumping ground.
His honor made the point that
should the ground be sold the pro-
ceeds would not afford any relief to
the creditors whose claims amount
to practically the amount offered by
the big company. His reason for
this was that the mortgage arising
from the bonds would first have to
be satisfied. There was no hurry in
regard to raising money for this pur-
pose for the reason that the company
has until July to raise funds for the
payment of the interest on the out
standing bonds. The interest was
due last month, but the right of re-
demption rests with the company un-
til the first of July.
The fact that a plan is afoot for
the reorganization of Ely Central al
so carried weight with the court; as
we'll as the possibility of the Receiv-
er being able to dispose of the prop
erty subject to the right of redemp-
tion. This latter carried with it no
reflection on Receiver Millard; on
the contrary, he was thanked by the
court for having brought the matter
to its attention in his desire to do
something which would aid the dis
entangling of Ely Centrals affairs
and afford some relief to the stock
holders and the creditors.
The principal witness for Ely Cen
trail in opposing the selling of the
dumping privileges was S. F. Hunt.
who was at one time in charge of the
property. and who did most of the
prospecting work in preparing for
the patenting of the ground. Mr..
Hunt was put on the stand for the
purpose of showing the value of the
property, the contention of the oppo-
sition that the dumping privileges
were more valuable than the amount
offered.
After the decision was rendered
Attorney Boreman for the Receiver
made the contention that without
money the Eureka shaft would have
to be closed as there was no money
Attorney Loekhart declared that II
the Receiver would turn over to him
the money received from Ely Cen
tral rents, he would find the way of
keeping the pumps going; and that
he had been informed that 1t would
not damage the shaft if the pumps
were shut down for a week or more.
Mr.. Millard disagreed with this view
of the matter.
Judge Coleman suggested that the
attorneys and the receiver get to-
gether and formulate some plan
whereby the pumps could be kept
going He would take the matter up
at any time. at the suggestion of
either side, giving it his immediate
The decision of Judge
Coleman in full follows:
Plaintiff instituted this suit for
the purpose of procuring the appoint
ment of a receiver with view of pre-
serving the assets of defendant COM
pany for the stockholders. 1t was
upon this theory that the receiver
was appointed. At the time of the
OF the receiver the COM
pany owned assets of an admitted
value nearly twenty-three times the
amount of it's floating Indebtedness
and several times the value of the
aggregate sum of its floating and
bonded indebtedness. While the ap-
pointment of a receiver of a solvent
is frequently necessary,
such action is usually regarded by the
courts as harsh step, taking from
the officers and stockholders, as Ii
does, the management of It's affairs;
but TO follow up such action by
summary proceedings to raise funds
which shuts off the equity of redemp-
tion. is not, in my opinion. contemp-
lated. 1t is the policy of the law to
permit redemptions from sales of
realty in judicial proceedings. IL
the order sought be granted there
could be no redemption.
Furthermore, courts are reluctant
to substitute their judgment and dis
cretion in matters of business for
that of the officers and stockholders
of solvent company when it can be
avoided. In view of the reluctance
and of the admitted value of the as
sets of the defendant company, and
of the movement now on foot to
raise the necessary funds to pay off
all of the Indebtedness against the
company, (Which the court has no
right to presume will be unsuccess-
full, and of the possibility of a sale
by the receiver. subject to the right
of redemption, of enough of defend
ant company's property to pay off all
of its Indebtedness. together with the
further fact that the amount which
would be realized from the proposed
sale would not pay the floating in
(Continuea on page four.p