The Wallace miner. [volume] (Wallace, Idaho) 1907-current, 1915-12-30
INTERSTATE CALLAHAN COMPANY PAYS
$2,557,445 In 1915 president DISCUSSES
LITIGATION In LETTER TO STOCKHOLDERS

; EN- ~ S1ONhf1OLDE
to have the case transferred to tn
federal court for further pleadings
Judge Woods denied our motion, an,
we Immediately filed a petition In tn,
Federal Court to have the case re
moved from the State Court of Idaho tt
the United States District Court. In
stead of asking the Federal Court t.
give us an injunction against the re-
ceiver taking possession, we agreed
with Judge Woods to file a bond In the
sum of 100000 If he himself woulc
stay his own receiver from taking po-
session pending the decision of the
Federal Court on the question Of juris-
diction. This motion was argued in
1.-The Federal Court at Boise on Septem
Der 23rd, and Judge Dietrich Of that
lcourt handed down a decision on Oe-
! tober 18th granting our motion, trans
lferring the case from Judge Woods
court to the Federal Court, and issuing
an injunction against the State Court
taking and further action, and setting
the case down for argument in the Fed !
leral Court at Occur d'Alene City on
November 18th.
On November Is, 1915, Judge Die
Itrich's motion to remand the case to
Judge Woods, reasserted the jurisdic-
tinp nf fha fadana1 ,,,,rt IL xS.a.oaa
ed to hear our other motions, which
were:
A motion to strike out the appear
ance of Mr.. Hanitch as attorney for the
Consolidated Company and to strike
out the answer filed by Mr. Nelson
claiming to be president After argu-
ment this motion of ours was granted,
and Mr. Hanitch's appearance and Mr.
Nelson's answer were stricken from the
records.
We then proceeded to the argument
of our second motion, which was to dis
charge the receiver, and at the same
time argued our third motion, which
was to dismiss the proceedings entirely
on the ground that the plaintiffs com,
plant did not show cause of action.
This latter motion Judge Dietrich de
MED, stating that he considered the biz
containing allegations sufficiently SER
ious to necessitate a reply on our part
but that he did not consider the plain,
tiffs entitled to receiver He there
fore made an order discharging the re-.
ceiver but requiring the Consolidated
Company to file it's answer before the
May. 1916, term of court and enjoining
1t in the interim from doing certain
actions complained of in the COM
plant. In order to demonstrate to the
court and to our stockholders our
in the integrity of our posi-
ton, We consented that pending the
trial Of the action in May, we would
not make any new contracts or modi-
fy our present contract with the Am
arican Metal company without the
written approval of Myron A. Folsom.
one of the attorneys for the plaintiffs
Mr. Folsom Is now in our office. and |
we have invited him to make the most
examination of all the af- |
airs of the company past and pres
mt as we welcome an opportunity to
'rove how baseless are the accusa-
Ions OF his clients. Our answer has
'een filed, and we have no doubt
whatever that on the final hearing in
day the case will be dismissed.
From the foregoing recital of the
acts, you will at once perceive that
he gentlemen who brought this liti-
alton have been entirely discredited.
IS representatives of your company,
ley have been thrown out of court on
1eir own showing, and it only re- :
lains now for us to prove in Nav !
lat certain allegations in their com
aint are untrue These allegations q
fer particularly to a contract for the ?
lie of 5000 tons of ore for shipment r
lring April, May and June. 1918 70 |.
ie American Metal company at s3S a n
n. This contract was approved by
cry member of the board of direct
$ and was completed long before the
lnual meeting of the stockholders in
lluth in August. As a matter of a
ct, there has been no act or deed fc
mmitted by your board which will Il
I stand the most careful scrutiny; -
q we are convinced that the lltiga- %
n instituted by these gentlemen
uld have been discontinued long ago az
1t not been for the fact that the ~
oenses are being taken out of the w
asury of the Callahan Mining COM pl
ny and not out Of their own poclS- OF
an
any stakeholder wishes an an
Or to any specific question concern -
anything he has heard or read
nut this litigation. we shall be ~
lsed to have you address letter to
president and you viii receive
mpt and full explanation If you nu
at any time in New York City, we 70
i be very glad to have you call at no,
nff1aa IF fha oamuanv xvhara tba ~.