The Wallace miner. [volume] (Wallace, Idaho) 1907-current, 1915-09-02
WAR FACTIONS FIGHT FOR CONTROL Of
GREAT PRODUCER, ,|NTERSTATE-C callahan
COMPLAINT ALLEGES FRAUD IN PERMITTING AMERICAN
AIS COMPANY CONTROL PRoPERTY-REcEWER
APPOINTED PENDING CASE.

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Interstate Callahan Consolidated Min
ing company was instituted in the dis
trict court last Saturday, this action
heing the outgrowth of the fight for
control in the recent meeting of the
stockholders in Duluth few weeks
ago. when two boards of directors and
two sets of officers were elected. LII
the stockholders meeting the faction
commonly referred to as the Callahan
Routin offered to vote 10000 shares
held by the Callahan Mining company,
hut which were rejected by the Perci-
yal-Robbers faction, which was In the
control of the meeting. Thereupon
each faction elected directors and OIL
GERS. and the Callahan -Boutfn factlon
has now appealed to the court to de-
eide which set of officers is entitled 10
exercise control of the great zinc NINE
The plaintiffs, James F. Callahan, the
callahan Mining company, Joseph
Routin and others, were represented
in this initial proceeding by Louis Ha-
mitch of Superior, Wis, and James H.
Gvde. of this city. 1t is understood
that John P. Gray, Of Occur dAlene'
and Myron A. Folsom, of Spokane,
have also been retained by plalntilfs'
Pending the trial of the issues IN
volyed in the controversy for control
of the property, Judge WOODS was
asked to appoint a receiver to take
charge of and manage the affalrs Oh
the company to the end that the IN
terests of all stockholders might De
protected. The court granted the Pc
tition and appointed Eugene h. Day
receiver.
A Record Bond Filed.
Judge Woods fixed the receivers
bond at 100000. A bond for the en-
tire amount was written by Herman
J. Rossi, representing the Aetna In
surance company. This is said to De
the largest bond that has even peen
executed by single company IN the
northwest. Generally bonds OF this
magnitude are divided among two or
more companies and there were ap-
plicants for part of this bond, but the
Aetna took the entire risk. Mr.. Day
qualified Monday, but in the mean
time a question of jurisdiction having
been raised, Judge Woods Instructed
him to wait until the question had
been passed upon before taking charge
of the property.
May Go to Federal Court.
Last Monday John H. Wourms, at
torney for the Robbers -Percival fac
tion which now has control of the
property and which it is alleged is in
reality the American Metals COM
pany, injected into the controversy the
question of jurisdiction of Judge
Woods to appoint receiver and hear
the issues involved, the contention be-
ing that the case should be transfer
red to the United States court. The
ground for this contention is in the
fact that the Interstate Callahan COM
pany is an Arizona corporation, the
Callahan company is an Idaho corpor-
alton, while the factions represented
by the two companies are residents of
Idaho and Minnesota. The question of
Jurisdiction will be argued before
Judge Woods tomorrow
Points in the Complaint.
The complaint which forms the ba-
sis of the action filed by the Callahan
Boutin faction is voluminous docu-
ment embracing twenty typewriter
pages. 1t is alleged that last April a
contract was entered into by the In
terstate- Callahan company with the
American Metals company for the sale
of its ores for $3S per ton when the
same ores yielded as high as $193 per
ton and were never worth less than
$50 per ton, and that the said contract
was obtained by the American Met
ais company through misrepresenta-
tion and fraud; that the officers OF the
Interstate Callahan company have re-
fused to take steps to cancel the con-
tract and recover the damages suf-
fered by the Interstate Callahan COM
pany; that the American Metals COM |
pany has caused the main Office of the
Interstate Callahan company to be
moved to the offices of the American |
Metals company in New York and
that all the files, papers and records
of the mining company are kept In
said Offices that the American Met
ais company has caused DR.. Otto
Sussman, it's general mining engineer,
to be made consulting engineer for the
Interstate Callahan company and d. |
f. Haley another engineer of the
metals company, to be employed at
salary of $4,000 per year to give only
one-half of his time to the mine and
to have complete control Of the oper-
alton Of the mill, assaying and other
technical work; that through the en-
ployment Of these men and through
favors extended to John A. Percival
and John II. Robbers, and other off,
GERS Of the company and by reason of
obligations said persons are under to
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