The Wallace miner. [volume] (Wallace, Idaho) 1907-current, 1913-09-11
Mullan. Idaho. September II

To the Editor of The Miner:
In a letter dealing with affairs Of
the Federal Mining & Smelling COM
pany, printed In The Miner of August
7, Sidney Norman asks the following
questions concerning the recently or
ganized Green Hill-Cleveand Mining
company:
Il now ask him (Harry l.. Day. why
the Green Hill-Cleveland company
was organized in Nevada; why he last
Brownell (who draws salary of
s12,00 year and expenses from the
FederaD. forced the Green Hill Clevc-
land (of which Federal owns but so
per cent? into an agreement to ship
ore under the original fraudulent
blanket contract, in spite. Of the fact
that its terms provided that only the
companies of which Federal owns rs
per cent Of the outstanding stock shall
come under its provisions. and in spite
Of the further fact that Green Hill
Cleveland thereby sustains losg Of
approximately 100000 year,"
So far as is known those questions
have not yet been answered by the
gentleman to whom they were ad-
dressed
Green Hill, Cleveland Holdings.
The property of the Green Hill
Cleveland company consists of the
Cleveland group of claims, purchased
by the Federal after the working out
and abandonment of the famous
Mammoth claim, and fractional
claim, the Green Hill, owned by Leon
ard brothers and others.
The owners of the latter claim join =
ed with the Federal company to form
| the Green Hill Cleveland Mining COM
pany, under the laws of the state OF
Nevada, and took over the Green Hill
Fraction and the Cleveland group
| In the articles of Incorporation nc
stock is subscribed for by either the
owners of the Green Hill or the Fed
eral company, then owner of the Cleve-
land group but the entire subscrip-
ton appears in the names of dunn
mics. attorneys in the employ of the
Day interests.
Independent OF Its Owners.
Having been born in Nevada. this
new company proceeded to take up
its residence in Idaho and to carry on
mining and milling business en-
tirely Independent of the Federal COM
pany, having offices in the block for
merly known as the Samuels- Neil,
now belonging to the Days, with sep
attorneys, except the president and
manager, who is the same person in
both companies.
What was the particular reason for
selecting the state of Nevada for the
filing of the incorporation of this
new company?
Nevada Law Convenient.
The answer may be found in the
fact that the law governing corpora
tions in that state does not hold in
dividual stockholders personally la
BILE. or II may be in the further fact
that the Nevada law permits officers
Of a corporation to hold ONCE FIR
three years. without reelection or
change.
In Idaho the statute is not SO con-
venient, holding as 1t does that indi-
viduals in corporations are personally
responsible, as recently illustrated in
the case of the State Bank Of Com
merce Of Wallace. Also the Idaho Law
requires an annual election Of officers.
Real Owners Kept in the Dark.
Thus, under the protection Of New
ada law, Mr.. Day has secured -
himself the management of tho Gree,
Hill Cleveland company for three
years continuously. and by a separat
place of business and separate book
has excluded all Federal stockholder,
from any knowledge or participatio =
in the affairs of the Green Hill Cleve
land company, thus assuming a com
plete dictatorship over this investment
or asset of the Federal. representing
large amount, the purchase price
alone Of the Cleveland group beinf
$18o,ooo.
As stockholder in the Federal
company and having accordingly ar
interest in the Green Hill Cleveland
company, / wish to ask II. l.. Day
whether or not he Is drawing a salary
from the Green HillCleveland com
pany. more than half Of whose assets
belong TO the Federal company II
such is the case, Federal stakeholder
are paying twice for his services as
manager Of their property
A. M. STROBE.