The Wallace miner. [volume] (Wallace, Idaho) 1907-current, 1915-02-18

MAKES PROPOSITION STOCKHOLDERS AND SEVERELY CRIT
clsEs MANAGER PETER BERNIER-WELL KNOWN PROP
ERTY ON CANYON CREEK OF GREAT VALUE.

A fight for the control Of the Black
Bear Consolidated Mining company
was precpitated this week when cir
cular letter was mailed to the stock
holders by L. E. Hanley a director Of
the company from August, 1870 to Au-
gust, 1912. and still heavy stockhold :
er. The purpose of the letter is obtain
an option on majority of the stock
of the company and proxies from the
stockholders during the life of tile op-
tion, and in it Mr.. Hanley says: u
wish to advise you that l have had this
matter up with responsible people
whom / have every reason to believe
will be able to exercise the option If a
majority of the stock Is secured, and
from the terms of the agreemen YOU
,ylll see that it Is to my advantage also
to secure as high price IS possible II
your stock" 1t is understood thai the
option sought is for 80 cents per share
and runs for two years from Ma "ah
Mr. Hanley reviews at consid rabie
length the financial operations Of the
company and INDUCES in some severe
critics ism of the president and man
ager, Peter Bernier, under whose con
trel the property has been handled ap
to the present time.
Time and Money Required
Mr.. Hanley sums up his case against
tn management and his argument in
support of his proposition in the fol-
lowing paragraphs.
From the foregoing statements, 1t
will be apparent that the affairs of this
company have. been handled and dom
mated by the president, and | believe
that you will agree with me that they
have not been handled to the advan-
tage of the stockholders.
ITO develop and equip the property
to dividend paying stage will take
several years, even if the ore hodies
develop as we have hoped. The com
pany Is out of funds now and the
president recently stated to the writer
that unless he was successful in SELL
ing treasury stock he would levy an
other assessment at once.
when you consider the fact that
very little development work has been
done in commercial ore, and that 1t
will require thousands of dollars to do
such development, and thousands of
dollars for equipment to handle ore If
it is developed you will understand
that to accomplish this by assessments
win entail tremendous burden on the
stockholders"
Charges of Mismanaeement
The complaints against Mr.. Bernier
have to do altogether with the finances
Of the company. After outlining the
details of his proposition, Mr.. Hanley
takes up the management and reviews
Its operations with the view TO showing
the necessity of a change, and the
main allegations are contained in the
following extract3
"During this time Mr.. Bernier, the
president of the company, has virtually
had options on all of the treasury
stock up to January J. 1914, and be-
yond that date he has been given abb
solute authority to close any deal for
financing the property that he saw fit.
"The terms of the options called for
payment of 20 cents per share to 30
cents per share net to the company,
but placed no limit on the price he
might ask or collect from buyers, and'
until November, 1912, made no provi-
SION for his expenses in placing the
stock. 1t was originally a straight
business proposal, by which, if he had
been successful in selling the stock, he
would have made a handsome profit
for his personal account as he endeaV-
ored to sell it at figures very much
higher than the price he was to pay
the company. AS you are aware, he
Awas not successful in selling the stock,
wbut he was successful in persuading
your board of directors to vote for him
on August 26, 1912, the sum of $500
dollars. on the same date an assess
ment of / cent per share was levied.
Since that date numerous payments Ol
a similar nature have been made-the
total amount allowd him being in eX-
cess Of $500, in addition to salary pay
ments aggregating $3.50 covering the
period September, 1913, to July, lSl4
during which time the mine was no'
operating. These amounts are addi'
tional to salary paid while mine Wa'
operating.
"In addition to these payments, MI
Bernier borrowed from the compah
$1,000 giving his note bearing interes
at 4 per cent per annum. This not
has not been paid, although $500 G
Rmounts allowed him has been credit
wed on the note, and payment of bal
ance has been extended to October
1915
During the same " iod he borroWe
for the company $4,000 for which note
Of the company wer issued, bearir
interest at 10 per ecE per annum, 81
cured by 10000 shar OF treasul
stock, and also 5000 Il .-as of treasui