Arizona republican., 1912-05-29
LATELY CLARA;
 NOW SWANSEA
Final Step in Reorganiza tion and Discharge of Receiver of Clara Con solidated. Early Resump- tion of Operations.

The asst step was taken yesterday
 morning in federal court in the organ
 ization of the Clara Consolidated Min
 ing company under the name the
 Swansea Consolidated Gold and Cop
 per company. It was stated that work
 would shortly be resumed on the prop
 erty at swansea, that within sixty days
 the contrary would be turning out cop
 per ana that within three months op-
 erations would be conducted in full
 blast.
 The last move in the case was an order by Judge Mack of the United States court dscharging the receiver, John M"ts of Tucson and the eXoner-
 ation of his bond. This order followed
 friendly hearing on an issue of fact raised by the company. that it had been at no time insolvent and that it was now prepared to discharge all the indebtedness against it except the bonded indebtedness on which the in terest will be paid, The amount re- quired to be paid is in the neighbor- hood of $2S0O00
 The troubles of the company began last fall and about the middle of Nov ember the property was closed. Labor claims amounting to about $25, ,O00 were collected and on behalf of the claim ants. application was made to Judge Campbell then sitting a Tucson for the appointment of receiver The appli- cation was fought and twice was de- nied but it was finally granted and Mr Mets was named.
 In the meantime the European and other stockholders of the company be- gan casting about for some means of saving themselves. The bOndhOlders, of course were amply protected Fin ally the matter of reorganization was put into the hands of Mir. C. Clcrc of i Paris d distinguished mining man and l he succeeded in enlisting the interest | of Schutte Bros. bankers of Amster- | dam and they undertook the raising of ] $4000.o0o of which S2S3.000 was to be i raised at once for the payment of the ] labor and other urgent claims including l the interest on the bonded indebted ! ness. In exchange for this they were ] to receive a large block of the stock ] of the new company to be formed. i Two weeks ago at Prescott it was l agreed that the Clara company should i deposit with Los Angeles Trust com pany deeds in escrow to the Swansea company. conditioned upon the dis 1 charge of the above described indebt- eJness.
 Then came the raising of the issue ', of fact heard yesterday Robert F. Morrison of Prescott who had been the | chief counsel for the old company from | the time of it's organization and is now | occupying the same relations with the new company was present for the com panies. Receiver Nets, accompanied | by his attorney $. L. Kingan of Tue | son arrived yesterday. Carroll Allen | of Los Angeles representing the inter 1 ests of William Schutte and MT. Clerc
 and w. P. Seabury and Paul Ingles | representatives of most of the labor ] claimants completed the array of l counsel.
 1 Evidence in support of the solvent l character of the company was offered i by w E. Taylor auditor for the old 1 company and also auditor for the new and MT. Clerc. The latter stated that l he had made a careful inspection of the | property. There was on the ground. i machinery and other improvements of | the value of S800O00 and in his opin- | ion there was ore in sight which would | yield profit of not less than $1,0OO.- l 000. A matter of fact there was ! much more ore than that but these l sums were far in excess of the inlebt- l edncss of the company. bonded and 1 otherwi7e- on this showing which was not disputed the order was made dis ! charging the receiver MT Clerc will
 take charge of the property on which l more than $1,00O,000 has already been i avppDdp1