White Pine news weekly mining review. [volume] (East Ely, Nev.) 1910-1920, 1911-10-15
Spectacular Raid of a Year Ago
TO Be Aired at Last in the
Federal Courts
HANGs ON THE ELY CENTRAL
SPECIFIC CHARGE AGAINST THE
FIRM is ILLEGAL USE OF THE
MAILS-WITNESS FROM THE
DISTRICT.

The case of the U. S. government
against B. H. Scheftels & Co., goes
to trial tomorrow in the federal court
of New York. The matter has been
hanging on for year, and while
with the spectacular raid of B. H.
Scheftels & Co.'S. houses in cities
and many sensational charges made
mismanagement, Misrepresentation
swindling, ETC., the specific charge,
so far as can be learned, is fraudu
lent use of the mails.
1t was year ago Sept. 20, that the
New York house of Scheftels & Co.,
was raided, and at the same time,
government officers appeared in the
firms branch offices at Boston, Phila-
delphia, Chicago, Providence, Mil
waukee and Detroit. Every office
was closed up in the spectacular raid,
and all the books, records, correspon-
dence, stocks and money of the firm
were confiscated by the government.
The principals and their agents were
placed under heavy bonds which were
sooon forthcoming, and indictments
by the federal grand jury followed.
The trial was set for some time in
ptember, but was postponed until
Oct. 8, and then to the 10th.
The raided firm was the promoter
of Ely Central, and the raid sent the
price of the stock to smash. The
residents of this district are familiar
with subsequent events in the history
of this property, which has become
famous throughout the United States.
The mine was shut down, because of
lack of funds liens were filed, and
finally receiver was appointed,
despite the protests of the company.
The reorganization committee was
formed in the endeavor to rehabili
tate the company under new man.
agement, and from all accounts, this
has been accomplished. The COM
mittee sent Richard T. Pierce, an ex-
pert engineer to Ely to thoroughly
examine the property, and to report
upon it.
Mr.. Pierce returned a very strong
report as to the value of the ground.
and advised the expenditure of fur
ther funds upon its development
1.-The Ely Central property" he said,
.in my judgment, is one of great po-
tential value and well justifies prov
ing"
Prior to this report being received
the members of the reorganization
committee have not been idle. Evil
IDENTIFY, they were impressed with the
worth of Ely Central, for they ad-
vanced the money to pay off the
liens, and for time, the funds to
keep going the pumps at the Eureka
shaft. Then, they concluded that
it was a useless expense to retain a
receiver, and action was brought to
oust Mr.. Millard. Previous to this,
court proceeding had been brought
to sell portion of the company's
ground to the Nevada Consolidated
for dumping privileges for the sum
of $4,000. This was bitterly fought
by the attorneys, Messrs. Lockhart
and Selfridge, for the committee; and
Judge Coleman would not permit the
sale. Then came the proceedings to
oust the receiver. and it was declar-
ed that the appointment of Mr.. Mil
lard had been illegally made.
Since the property has passed into
the hands of the reorganization COM
mittee, the latter has been in negotia-
tions with the Ely Consolidated to
work the southwestern portion of
Ely Central through the Zack shaft;
and the indications are that this will
he done.
Two of the witnesses at the trial