Rogue River courier. (Grants Pass, Or.) 1886-1927, 1913-11-28
DECREE HANDED DOWN IN GOLDEN
DRIFT CASE--|N COURT FOUR YEARS

iho ueCIee III the GOluen DrlI|
case (also called the Ament dam Lit.
igation) which was decided a few
days ago by Honorable F. NJ. Calk,
ins, judge Of the circuit court of Or
egon for Josephine county, was on
Friday entered by the clerk of the
court.
This decree involves more proper
ty than any other decree entered in
this judicial district and is probably
the most important lawsuit ever
tried out in southern Oregon and has
q far reaching effect on this commun-
ity, owing to its bearing on land and
realty values.
The suit was brought in November,
1909, by George E. Sanders, acting
on behalf of himself and eastern
stockholders heretofore commonly
called minority stockholders" who
become, by this decree Just entered,
the real stockholders of the Golden
Drift Mining Company. Mr. Sanders
furnished the Courier statement as
to the causes of the suit, as follows,
to-wit:
THE Golden Drift Mining Com
pany started business in December,
1901. G. w. Ament came to Grants
Pass in the fall of 1901, and took an
option on the Dry Diggings' and COM
menced selling stock in the city Of
Chicago after December 20, 1901,
In February, 1902, a dividend Of l
per cent a month was paid and the
stock widely advertised as a divi-
dend security. Four such dividends
were paid in 1902 and two more in
1908. AS a result of these dividends
several hundred people were induced
to purchase took at 40 cents per
share, which price was shortly raised
to $1.00 per share, the stockholders
naturally believing that they were
getting a security based on going
property operated at a large profit,
which was indicated by the monthly
dividends. In this manner approx
mately 5000, 100000 was by the
stockholders invested in Golden Drift
stock and the use of the funds in
trusted to the Ament management.
"In the winter of 1902-03 some
mining was done by using the water
of Jones creek and fabulous reports
given out as to the value of the Dry
Diggings. In 1903 the construction
of the Golden Drift dam was start
ed, ostensibly for the purpose OF
working the Diggings in a large way
During this same year the stockhold-
ers discovered tnat the Aments had
organized an irrigation company
called the Advance Power, Electric
& Irrigation Company, which contem-
plated the use of the Golden Drift
dam for irrigation purposes and sup
plying Grants Pass with electric pow
er. The terms for use of the dam
were to be fixed by the Aments, and
the Aments owned all the stock Of
the Advance Power, Electric & Irri-
CATION Company, besides having pre-
viously issued to themselves on the
Dry Diggings option all but seven
shares of the Golden Drift stock.
"The Advance stock was offered
for sale at 40 cents per share but
the project fell fiat and stockholders
stopped buying Golden Drift stock.
This was the first loss of confidence
in the Ament management that was
apparent. When the dam was con-
structed large returns on the Golden
drift stock we're promised and divi-
dends were to be paid again. How
ever, on completion of the dam only
a few weeks of actual mining was
done and no dividends were forth
coming to those who had invested in
Golden Drift stock.
"In 1905, shortly after the dam
was completed, bond issue OF
s165, 100000 was placed on the prop
erty without the stockholders con-
sent thereto, and the pretended
bonds so issued at that time were
used for the sole benefit of the Ament
family. By putting bonds in hook for
personal loans, Ament got over
$50, 100000 more.
after this pretended bond issue
financial statement was issued and
sent to stockholders for the apparent
purpose of pacifying them, which
statement set forth that the net value
oil the Golden Drift property belong
ing to the stockholders was the re-
markable sum Of s2,3s4,O66.2e,
which led the confiding stockholders
to believe their stock was worth at