The diamond drill. (Crystal Falls, Iron County, Mich.) 1887-1996, 1916-06-17
FIRST CASE WENT
AGAINST YOUNGS
A VERDICT RETURNED OF S11, 200
FOR THE COMPLAINANT
EscE ORDERED ONE VERDICT
Ed. Hergard is Convicted but John
Cusan Got Off Through the
Jury'S Leinency

Undoubtedly the most interesting,
IL not the most important, litigation in
the history of Iron county held the
boards al the court house the first half
OF this past week. The litigation re-
ferred to Is that OF the Lake Erie ore
interests against c. w Youngs, form
erlysof Iron River, Mich, but now of
Kewanee. Wis. The action heard this
week was that Of the Lake Erie ore
Co VS. G. w. Youngs in which com
plant the Lake Erie company sought
TO compel Mr. Youngs TO pay into the
treasury OF the bankrupt Groveland
Mining Co. some $4,000 which the
Lake Erie people claimed Mr.. Youngs
should have paid for the stock he held
in the company and which he failed to
pay.
AS we gather the story from the
testimony the Lake Erie Ore Co. under
the regime had been mixed up with
Mr.. Youngs ia the Youngs mine al Iron
River The Youngs interests claims
that the late Captain Barlow who by
thc-way was president OF the Lake
Erie ore co.. asked Mr. Youngs ta
find him some low phos ore for the
Lake Erie ore Co TO sell Mr. Youngs
had had offered to him by one Luke, an
option on the GrOyeland mine iu Fclch
township Dickinson county This mine
had had checkerec career, the last
operators, Corrigan Mckinney & Co,
being compelled to dump some of the
ore il mined at the property into Lake
Michigan because they were unable To
sell &C.
However. Captain Barlow felt that
his company could sell this ore as
furnace practice had changed consid-
erably between the time Corrigan Nc
Kinney operated the property and the
year 1907 when Mr. Youngs was dele
gated TO get the low phos ore The
Groveland Mining Co was formed with
MIR Youngs, Captain Barlow, Lake Erie
ore Co and othcr interests taking
stock in same. The capitalization OF
company was fixed az 5000. 600 This IS
a very important item as the capital
ization OF the property at that sum
was dwelt upon by The complainant
who charged Mr. Young with eEorhi-
tantly capilalizine the property
The testimony showed that Younes
and Barlow spent $9,20Ooo in pumping
out The mine That was about an that
was spent upon the property prepare
tory to starting mining operations
Lake Erie Loaned ON ore
Tho Lake Erie ore Co being ore
brokers followed the usual custom of
sqsh interests and advanced $l0O per
ton upon the ore In stock The sales of
ore were disappointing and the Lake
Erie company kept getting the Grove
land mining Co more and moro into its
dept
In 1912 Captain Barlow died and then
commenced a change ol things iu THO
wnnaEcmeut of tho Lake Frle orc 90
Tho ucw officials began 20 aspire 90
management of the ore mines I'm which
The company held stock and family
row arose between the Youngs inter
cstslund me Lewis .'lterest Of Lake
Eric 1fc This quarrel finally culml-
Dated in the Lake Erie ore wrestling
the management OF the Grovcland com
pony from the Youngs crowd
The Lake Eric company continued
10 operate the Grovcland mine for
couple OF years Much diamond driu
work and dead work was done and
WHEN II became apparent that the ven
ture was not going 10 pan ont as
SUCCESS tho property was thrown into
t~gfryptcy The principal and almost
th k1nly creditor was the Lake Erie
, Orc which had advanced the money 20
operate tho property The Ore com
pany Immediately began proceedings
TO get back some Of tho money that Il
had expended and. as one Of The sour
ces. started through the receive pro-
ceedings against Mr. Youngs TO com-
~ him TO come across with the DIFF
ference between the par value of the
aipct lie held and the amount of cash
thu he had paid IN
Claimed II was IA Fraud
AS has been stated. the Lake Erie