The Wallace miner. [volume] (Wallace, Idaho) 1907-current, 1912-05-16
ASK RECEIVER FOR STEWART.
E. J. Carter, Director, Alleges Heinze
Has Failed to Account for
$95O,000 in Earnings.

$95U,UUU IN Earnings.
Suit was filed Monday the district court OF this county
asking the appointment of receiver for the Stewart s
company by E. J. Carter of Spokane director OF the com
pany The defendants besides the company are President
Augustus Henze New York. Secretary Treasurer M w. pa
con Butte Mont; and Directors Stanley Clifford ana L.
Dunham Of New York
Among the allegations in the complaint is that Henze has
issued absolutely without consideration to H. IT, Hart OF Salt
Lake City 22O0O shares of treasury stock 1t is also alleged
that he has in other ways squadered the assets OF the com
pany converting it's earnings to his uses and that he Is
now endeavorng mortgage its resources Tor his own
benefit that he has kept the records of the company out Oh the
state and inaccessible shareholder other than the de
PENDANTS.
The complaint places the value of the property at $4,000
Ooo The capital stock $25000 in shares of par value OF
ST each of which 2500O0 are should be- in the treasury o.
the company It is said that about July 90 1911, al
special meeting the directors of the company attemt"
to be held in New York city, of which plaintiff received no
notice though he was New York at the time and personally
conversed on July with Henze who failed to notify him OF
the meeting to prevent his being present
Henze Bacon and Clifford attempted to enter into pur
ported with Hart for the transfer to him OF 225
shares treasury stock without any consideration therefor at
the meeting it said Mr. Carter went to New oYrk April
g. 1872 to the records Of the alleged meeting bit was
then informed by Henze that the records at the com
panys Office in Butte Mont April 26 he went to Butte and
requested Secretary Bacon permit him to inspect the books
particularly the records Of the meeting of July 20 These re
cords Mr. Bacon claimed in New York Later the same
day. the plaintiff advised that the records had been found
After inspection found there record OF the meet
ing of July 20 but Mr. Bacon produced from files rpored
COPY of the minutes Of the meeting. They recorded eel
to Mr. Hart under date Of April H. 1911 wherein on behalf OF
the company Mr. Henze granted Hart option on 2ooo
shares of treasury stock of the Stewart upon compliance tha
e. Aha # II
cents per less than the company then PAYING 1at he
secure least 80 per cent of the stock OF the Coer Ae
Development company the alternative OF running unne'
from Deadwood guch into the Stewart mine at the same p
as the Silver King tunne that he OF the
stock Of the Coeur dAene Metal Mining and Smelling com
pany and to arrange with the State Savings BANK o. ote
Mont to take up that obligations of W McC White and
f. Augustus Heinze; and, finally lease mill lor TIE 'e"i'
company in the Occur d 'Alene district.
The minutes also showed that the 225O0 shares were
transferred Mr. Hart at the meeting for the reason that
appeared he had succeeded in making smelling contract ol
the Stewart company at IS cents ton less than it had been
paying - ~ oo -,
was fraud because consideration ad the contract 1o
lower smelling having been made by Mr. Helnze with
out any assistance Mr. Hart the tunnel having been built
paid for by the Stewart company the notes in the bank at
Butte being personal obligations of Mr. White and enze ac
the Stewart company having received any beneh iron
them and being way responsible for them the mil hav
ing been leased by Secretary Bacon without assistance
from Hart.
The option to Mr. Hart by Mr.. Henze is declared illegal
because unauthorized and for the express purpose
of deaudng the shareholders and disspatng and wasting
the compays property and that subsequent transfer was
subteruge enable Henze to control OF the 225
shares treasury Stock The complaint sets forth that the
company monthly of late has been from $4,000 c
$55OO that during the last two years of $95o0OO has been
produced that all of this money has been taken by lenzc t
the New York Office of the and that he has refused h
account for it, Within the last 60 days Henze has had all
the ore the measured and valued by expert
engineer for the express purpose of mortgagng for his own
personal and benefit with the alleged fraudulent intention
of deriving the shareholders of their interest Mr. Carter
saws The of enzes dealing is to prevent stockhold
es from securing dividends and to create condition in the
stock market by which they will be compelled to sacrifice then
holdings and thus enable ene again control OF the
stock for fraction of it's true value Ii his present course o
action is continued he will the Stewart )mpany