The San Francisco call., 1913-08-01
SUIT FILED To
RECOVER SMITHS
WEST END STOCK
]. c. Settle, Small Stock
Holder, Alleges 3o5,027
Shares Were Secured
by Fraud
CHARGES DIRECTORS
MEETING ILLEGAL
Restitution of Stock and
Profits Demanded and Asks
Restraining Order

The method whereby +. NJ. Smith is
alleged to have acquired ss5.O27 shares
OF the West End Mining company's
stock. worth s197.513.71, was illegal
and fraudulent, according to a COM
paint Tor an accounting fled yester-
cay IN the superior court against Mr..
smith and defendant directors of the
corporation, by ]. C. Settle, owner of
zoo shares of the mining company's
STOCK Mr.. Settle asks that Smith ac-
count to the directorate of the COM
pany for any profits that might have
accrued since he became holder of the
stock for court orders to restrain Mrs.
evelyn f. Smith, wife of Mr. Smith,
or director B. T. Edwards from dis
posing of the stock which he alleges
they received from Smith with full
knowledge by them that Smith never
acquired title TO the stock, and for
2 court order directing them to return
the stock to the mining company
The deal whereby Smith is alleged to
have doubled the value of his holdings
in the West End Mining company is
described at great length in the COM
PLANT. Mr.. Settles attorneys, antici-
pating vigorous attack, iterate and re-
lterate the charges against the borax
king.
ALLEGES ILLEGAL MEETING
Settle alleges that a pretended meet
ing OF the directorate of the West
End Mining company was held at Oak
land on June 9, 1911. and that the fol-
lowing directors were present: Smith.
= +. Edwards, C. B. Zabriskie and
Dennls Searles. They. with Mrs. Smith
and the mining company. are made de-
iendants in the suit
He alleges that at that meeting"
Smlth, as president, represented that he
mac purchased approximately one-half
or the entire capital stock of the Hall
faX-Tonopah Mining company at 81 a.
snare and had made an initial payment
on the contract of s176.211. He is al
leged TO have made the proposition
that 1t was good for the West End TO
acquire this stock and other shares
mat ne was negotiating for Settle
alleges on informa ton and belief that
Smith did not pay 81 share and that
at no time did he pay more than a5
cents for any share of the Halifax
stock
The plaintiff declares that there was
no quorum present and the resolution
OF the directors accepting Smiths sug-
gestion was invalid
second meeting was held on .Julv
8. 1911. at which the same directors
executed a note on behalf of the West
End Mining company to Smith for
ANesA AvV-cp III SANnAnEe Tor the Halifax
STOCK Smith, 1t is alleged. was given
an option to accept payment in cash
or stock of the West End at so cents
q share. These transactions are al
legged to have been Illegal, fraudulent
and void
WIFE RECEIVED CERTIFICATES
On February %. 1912, the same d.
rectors gave 9s5,027 shares of West
End stock to Smith upon his option.
according to the complaint Smith is
said to have transferred the certifl-
Gates to his wife an March To- 1912,
and she in turn, on July s, is alleged
to have turned them over to Edwards
Settle states that he is acting on
behalf of the other stock holders of
the West End Mining company and
asks the court to allow his costs of
litigation from the amount to be re-
covered by the company from Smith.