The Goldfield news and weekly tribune. [volume] (Goldfield, Nev.) 1911-1947, 1915-04-24
MERGERS CASE
IS PRESENTED
IN AFF|DAWTS
Attorney Henry NJ. Hoyt Makes Cate
gorial Denial of Charges in
the Complaint
CASE LIKELY TO BE
SUBMITTED TONIGHT
suit is Questioned by De-
PENDANTS Counsel
(By Edgar Thomas of Seattle Times)
Special to the News and Tribune

Special to the News and Tribune
SEATTLE, Wash, April 16.-Af-
fidavits in which a complete denial
OF all the plaintiffs charges Of fraud
and Misrepresentation, in connection
with the manner in which the Con-
solidated company secured control of
the Merger and the sale by the lat
ter of the Velvet claim to the Jumbo
Extension, were read this morning by
Attorney Henry NJ. Hoyt. The affi-
davits included those of c. o. Whit
terlore, Albert Burch and ]. Ross
Clark. Hoyt will rest the defendants
case this afternoon with affidavits of
George Wingfield and ]. K. Turner
and with the reading of the law bear
irg on the suit.
Judge Neterer this morning al
lowed John Erikson of Seattle, and
nine other shareholders in the Deep
Mines company to intervene in the
case, the defense taking an excep-
ton. This group represents about l.
100000 shares.
Makes Declaration
Attorney Hoyt declared at the out
set yesterday afternoon, in opening
the case for the defense, that the
court never would have appointed a
temporary receiver for the Merger
but for certain allegations in the
original bill, which were later with
drawn or modified In the amended
complaint.
He also drew the attention of the
court to the fact that the receiver
was named and the Clark-Whitte-
more faction enjoined from voting
the stock of the Deep Mines COM
pany, at a shareholders meeting held
here April g., without notice to the
defendants.
One Of the charges changed. Hoyt
asserted, was that in which it was al
legged that the Wingfield interests
secretly bought in the Jumbo Ex-
tension stock at the time the Mer-
ger sold the Velvet claim to the
Jumbo. Counsel for the defendants
emphatically denied that, as al
leged, the Wingfield interests had
entered into a conspiracy to rob and
plunder the remaining Merger assets
and that Wingfeld was interested
in Jumbo Extension. He also to-
tally denied all the compliments
various charges of fraud and also
that Whittemore had m~isrepresent-
ed anything in his negotiations, by
which control in the Merger was Sc
cured for the Consolidated.
Did Not Misrepresent
In explaining this deal, Hoyt said
that Whittemore did not m%isrepre-
sent, but merely concealed the iden-
THY OF his hackers, and that w. A.
Ciark'e name, the plaintiff to the
contrary Notwithstanding, was not
mentioned except in the connection
that the capitalist was largely inter
ested in the Las Vegas and Tonopah
railroad and the Salt Lake route.
He declared then that the Merger
board did not it's unwil-
lingness to deal with the CONSOLE
dated until negotiations for the pur-
chase were concluded.
Hovt also entered a strenuous de-
NAL tC the allegation that 100000
or more, spent in operations on the
St. ives shaft, the scene of the Mer-
ger activities, had been expended
otherwise than for the Mergers bene-
fit, CT in such a way hat the Wing
field interests would reap a harvest.
He said that the geology of the
l;,tri.} indioofn6 that orc WOlId
mos. likely be discovered on the st.
Ives claim, if anywhere in the Mer-
ger properties, and that the expen-
siva equipment put in at this point
was necessary because it was con-
coded by the best experts and others
that ore would not be struck at less
thar 1000 feet. This depth. he de-
clared, could not be reached with
anything less thar the three-com-
partment shaft sunk at the st. Ives.
Sold in Regular Way
Answering the plaintiffs conten-
ton that the Mergers Velvet claim
was sold by the Merger officers for
a song. when they had prior knowl-
edge that it contained rich ore
bodies, Attorney HOyt explained That
the property was disposed of in a
regular way and upon the best judg-
ment of the sellers. He denied that
they had knowledge in advance OF
the sale, of the claims true value
and declared that no person under
the sun can hazard a guess as to
what is under the ground.
Asked by the court why the Mer-
ger stopped operations on the Vel
vet claim after ore had been struck
Hoyt replied that this was because
the ore discovered was not in com
mercial quantities and that it was
not thought it would pay to take it
out.
AS to the charge that Whittemore
and E. S. Van Dyck, former presi-
1919 Exk@~fo1 a0D,