White Pine news weekly mining review. [volume] (East Ely, Nev.) 1910-1920, 1912-03-24
LITIGATION IS
ALMOST SETTLED
DECISION IN SENSATIONAL LAW
SUIT WITH RESPECT TO HALL
FAN Is EAGERLY AWAITED
by RESIDENTS OF TONOPAH.

One of the most sensational law
suits involving men of prominence
and supposed probity is now resting
with Judge Averill, of Tonopah. His
decision will mean more to some of
the people mentioned than the mere
amount stipulated in the contes. and
that is the reason the eyes o. every
citizen of Tonopah are turned in the
direction of the court house these
days.
The case arises from the dist"ibL-
ton of stock given in payment for
promoting the sale of )ne-balf in
t.rest in the haIaftx mine to "Bo-
rax" Smith. The commission was
pail by David Keith, the 81 Lake
millionaire who spent a couple OF
weeke in southern Nevada recently
for the purpose of settling minor diff
fences between his company and the
adjoining mines whereby the Belmont
and others were to be benefited to
the extent of improving their ventila-
ton.
H. S. Brady. general manager of
the West End and Halifax and for
merly general superintendent of the
Belmont, is mentioned in the suit
brought to establish the ownership of
10000 shares of Halifax estimated
to be worth at current quotations
something like $4,000.
On delivery of the Keith stock to
Smith, Brady and Mcdonald received
$4,000 shares each for their services
AS everyone in southern Nevada
knows Mcdonald was stepped in debt
and his creditors. he suspected wou d
not be notified any longer. Apprehen-
sive of an attachment, 1t is alleged,
he turned his block of Halifax over
to Brady with the understanding that
he would protect it from clamorous
creditors. A nominal consideration
of n dollar was mentioned in the
transfer.
During his lifetime Malcolm Me-
Donald experienced no trouble re-
garding this stock but. when he died
rather suddenly some of the local
crowd sat VI and began TO jog their
memories for information about TIE
big commission which was common
e One of these creditors applied
to Brady for information as to the
standing of the stock on the books OF
the Halifax company. Investigation
disclosed tina 5000 shares had been
transferred to Dixon & Ellis, a firm
of Salt Lake attorneys, presumably
fer services.
Irving Mcdonald, brother of the
deceased promoter, then applied to
the district court for an order au-
thorizing him to transfer the balance
of the stock or 40, 900 odd shares.
The application was made without
advertising and there was no publ
city of the occurrence until J. II
Monteath. director of the First Ma
tional Bank of Nevada, former pri-
vate secretary and confidential mar
to Mcdonald who constantly advanc-
ed funds to his associate heard Of
this transaction,
Next day he filed objection alleg-
ing conspiracy to defraud and colu-
sion. On his application Judge
Averill revoked his former order OF
sale and set the case for hearing this
week In the meantime it is alleged
Brady tried to withdraw his former
statements but the case had gone too
far as the creditors protested against
the withdrawal and demanded Il
searching inquiry into every detail of
the transaction. The indebtedness of
the estate is estimated at $50, 900.
Brady left camp last Friday and the