The Salt Lake tribune. [volume] (Salt Lake City, Utah) 1890-current, 1914-01-28
MINORITY SIDE Of
BUTTE & ELY ROW
Wanted Money in Butte &
Ely Treasury Used for
Its Development.

The Butte 6; Ely row still goes merri
IN, despite the fact that the minori'
interests were deprived, at the neetlr
IT Butte last Saturday, OF the represents
ion they had previously had on the boar
1f directors. They were oueted, but NJ
;ilenced, as the following statement oy
of the minority witnesse
Some years ago there were nifty
Butte men who Joined in the forma
ton OF prospecting company. We
put in $40 month apiece and ssnt
out d. G, Bard to locate mining prop
critics. He went down inLo Nevada
and among the properties that looked
promising were the claims known
the Beehive properties and one other
group. y company WAS formed and
the Beehive group taken over. These
arc The 2l0 acres that form the prop
crty OF the Butte q Ely. The COM
pany was organized and about hye
which the GIroux company secured
2ol, 900 shares or a majority OF the
stock Of the Butte & Ely, with the
understanding thai Il would go ahead
and develop the property.
Tne G!rouN owned property adtoin-
lnS or close to our claims. Most OF
the stock that tho GrouN secured
was treasury stock or the Butte e
Ely. and by the sale OF the stock
there was something like 100000
placed In the treasury OF the Butte
Since that time, however. the
Giroux Interests have not done the
development expected. Instead. the
matter has dragged along. and during
the last year a consolidation OF the
GirouN Consolidated Mines company,
the CoppcrmiDes company. the Butte
q; Ely Copper company and the
Cnainnan Consoida ted Copper COM
pany into one company, known as the
Consolidated company has been
made, or attempted.
This company has an authorized
capital OF $4,000, 900 and the offer
made for stock of tho constituent
companies was on a basis that made
II necessary for the Butte e. Ely
stockholders 10 turn in six and
quarter shares OF their stock for one
share OF stock OF the new company
Many OF the original promoters OF
the Butte e Ely. Butte men who put
their money into il at the start on
The recommendation OF Mr.. Bard and
who had absolute confidence in the
property, were opposed TO this con-
solidatlon project These held some
$1,000 shares OF tho stock, as against
<02,Ooo shares held by the Consoli-
dated company and its constituent
company. the GiTouN.
We were opposed TO the consol!-
dation because We believed the Butte
Ely company was the only one Of
the companies that had a good cash
balance in the treasury. and we
wanted that money expended In the
development Of the property.
We went into the meeting Of the
stockholders held Wednesday night
determined 10 put up fight for what
we believed our rights. But the op-
position had we'll oiled steam roller
and II rolled and rolled. There were
Two motions on which We had the
satisfaction OF voting and winning
ono was when we made a motion 10
close nominations for directors, after
both sides had nominated five men.
The other was tho motion 10 ad-
Journ.
On everything else the vote stood
9o5,0Oo to $4,000 against us. We
nominated five Dlcn who were among
the original promoters of the Butte
& Ely for directors. These five men
are Malcolm GillIs.. Fred Melcher c.
McGec,
The other side pu, up Joseph b.
Cotton, +. ]. Nancy. John w, Ncu-
kom, John y. Pope and Hairy A
Holp. The vote was one sided and
they didn't give the original Butte
interests n single director.
ono OF the sore spots in the entire
controversy Is the fact that the pres
cnL controlling interests have loan
Sl9p.OOO OF the money in the treasury
OF the Butte & Ely company 10 the
GlrouN company for development pur-
poses.
AZ the meeting. President Cotton
urged the adoption OF i resolution
calling for the change In the rate OF
interest on this loan from . per cent
70 per cent, He was very insstent
that we adopt Il, Bu, we wouldn't
1alI Tor that We pOUo-pJ ~
the loan at any rate OF interest at
all and would not vote for the mo-
tion 10 raise the rate, as such vote
might have been construed as vote
OF approval OF the loan on our part
The majority interests justified
their action In not eXDeudtng the
money on tho development of the
Butte & Ely properties by report
submitted TO the meeting. In this re-
port IT is stated that OF the entire
2l0 acres. but one acre OF ground
has been proved so far and shown
10 be valuable
The report was a black eye for
The property. and one OF our repre-
scntatives asked Mr.. Cotton II that
report, under the circumstances. did
not afrord good and lust grounds Tor
suspicion that they were trying to get
the rest OF the minority stockholders
to come in on their stock offer.
The majority claimed that the
showing OF their reports from churn
drill tests would not warrant expend-
Ing the money for the construction OF
mill for that property alone.
We have very good reason TO be-
lieve that the Butte & Ely claims are
very valuable. The property adjoin-
ing our claims has already been
proved 10 be OF great value. We
were willing and are anxious that
the treasury funds shall he expended
for the purpose as originally pro-
vided. and Will gladly take a chance
on losing the treasury funds II the
property turns out as their report to