Weekly journal-miner., 1917-07-04
COUNTERCHARCE MADE BY J-P
 SENSATIONAL
SAYS MAHONEY MOORE SUIT BROUGHT BY TWO DUMMIES IN BEHALF OF DISGRUNTLED DIRECT ORS OF COMPANY.
(From Wednesdays Daiiy)

Denial of charges of fraud and countercharges are made in an an- swer, containing IA typewriter pages, filed by the Jerome Portland Copper Company to the complaint of J. M. Mahoney, George Moore and other stockholders similarly situated" in which A. R. Frame, one of the organ izers of the company, is accused to having sold worthless claims to the corporation in exchange for huge block of stock. The answer, which comprehends general demurrer, sev- eral pleas in bar and a specific separ- ate answer for the corporation, was filed in the Superior court yesterday by H. H. Linney.
 One of the spectacular counter charges made by the company is tha, Sullivan and Burke, of the original board of directors, and not Mahoney and Moore, are the ones who are really bringing the suit and are pay ing attorneys for the plaintiff. In other words, Mahoney, who was an employe of the company until he re- signed to sit in the late legislative session, and Moore, are dummies.
 It is further alleged that Moore and Mahoney were not stockholders or subscribers to stock in the company, at the time of the alleged misdeeds of Frame, complained of, and that therefore, they are not qualified to bring suit.
 The complaint, which was filed by O'Sullivan & Morgan, alleged in brief, that the corporation was form ed with the purpose of acquiring, eN- ploring and developing for profit, the Brookshire group of copper claims in the Jerome district. Frame, a pro- moter, it is claimed, caused the board of directors to issue him a control ling number of shares of the corpor- ate stock, in return for Il hastily To- cated and presumably worthless min ing claims, adjoining the Brookshire
 The answer recites as facts, some what as follows. That Frame sold his II claims to the company for one half the stock. Later, Sullivan and Burke, members of the original di- rectorate, contracted with the com pany to sell the Brookshire group for SS0OO0 in cash, payable in install ments, reaching over certain period, probably about six months. A part of this money, some 5000 was paid
 The directors had made Frame the sales agent for the company, and he proceeded to put lot of pep" into the sales, SO that the stock was in pretty good demand at Soc a share. Seeing the success of the sale, Sulli- van and Burke are alleged to have raised on the company. Securing a meeting of the board, they rescinded the original contract and by resolu- ton, agreed to buy the Brookshirc group for the sum of S20,00O in cash and 2S0,000 shares of stock, which at the market price, amounted to exactly twice what was first asked for the claims, or $l60,000.
 Frame is said to have protested strongly against this deal, and when he learned he could not prevent its consummation, concluded to meet the payment of 2S0,000 shares with stock | from his own allotment He trans ferred the certificates to the sellers | and deposited them in the Bank of | Arizona at Jerome.
 Last Fall, at the regular meeting of l stockholders, Frame is said to have become convinced a change in the di- !! rectorate was necessary, and as the board was being reduced from seven | to five members, used his stock to put in other men in place of Sullivan and Burke
 The company, Frame ard the Bank of Arizona are tied up by a tempo rary restraining order, preventing the transfer of any stock. Within short time, an answer will be filed in behalf of Frame