The Wallace miner. [volume] (Wallace, Idaho) 1907-current, 1917-04-05
MOTION TO DISSOLVE INJUNCTION OVER
RULED IN PF|RMAN VS.. SUCCESS CASE
GROUND UPON WHICH MOTION WAS BAsED-MEETiNG OF sue.
CESS STOCKHOLDERS POSTPONED SUBSTANCE OF THE
COMPLAINT RMAN AND WIFE.

PERMISSION TO see papers IN connection
with a reported option held on a pro-
perty in Custer county. He was then
given lease and option given by
Clayton Mining & Smelling company
to Robert N Bell. present state mine
inspector. Attached to the lease was
an assignment from Bell to p. ].
was an assignment from himself and
HoWarth to the Success company. He
replied that there We're no other pap
ers except report of Bell, which was
referred to in a circular letter re-
Gently mailed to STOCKHOLDERS.
While Pfrman was still copying pa
pers handed to him the closing hour of
S o'clock arrived and the Office was
closed. His request that he be per-
nitted to take the original instru-
ments to his office to finish copying
was denied. When a request was
made to use the addressographs used
in the office Gearon is said to- have
denied that the company possessed
one. Pfirman alleges that he then
velope addressed with an addresso-
graph, and says Gearon still refused
to permit its use Pfrman alleges he
went back on Monday, March 10, to
complete making his copies and
Gearon refused to permit him to see
the papers. He called again on the
following day with the same results.
Report on Success.
At the last annual meeting of the
stockholders, a year ago, report to,
stockholders was made by Arthur B.
Clark who was held out to stockhold-
ers to be a mining engineer. This re-
port showed a total of 10000 tons Of
ore in the mine above the 1200-foot
level. This report is now branded as
false, and it Is averred that Clark is
not a mining engineer and that Clark
so testified in court subsequent to
that time. 1t is alleged that up to
August, 1916, the Success mine paid
large dividends, that in spite of a
report of the management in August,
1916, that the mine was in better ply
In its history, and that its reserve
funds were intact and would be add
ed to the net earnings, that it has
failed to pay any dividends, and an
CURED since that time.
1t is also charged that the Clayton
property is worked out, is 60 miles
from a railroad and of doubtful
value: that the report made by the
state mine inspector, Robert N. Bell
was made by Bell as a promoter who
secured the original lease and option
The statement made to stockholders
and the public that the Success COM
pany had taken over the property is
branded as false and misleading. I'm
der the terms of the lease and option
a total of $125,OOO is to be paid for the
property, $4,000 on September l.,
1917; $4,000 on July 1. 1918, and
$4,000 on December /, 1918.
Reasons for Postponement.
The lessee is also required to keep
10 men employed on the property dur
ing the term of lease and bond. 1t is
charged that the consideration to be
paid for the property has never been
divulged to the stockholders, nor
commissions to be paid to Bell, Gear
ON or Howarth, and that secret pro-
fits are to be paid out of the treasury
If the Success company.
1t is also charged that proxies sent
)ut for the annual meeting asked for
he appointment of Gearon and that
he postage and other expense Incl
dent to securing these proxies was
paid out of the Success treasury.
1t is asserted that in August, 1915,
Success stock commanded $135 a
share and that through false and mis-
leading statements of the manage
ment and the refusal of an examina-
ton Of the books and records the
stock is now selling at 40 cents a
share. 1t is charged that unless the
annual meeting scheduled for next
Monday is enjoined the present man
agement will be able to perpetuate
themselves in office, that the Clayton
property will be bought without the
stockholders being advised as to its
true worth or what commissions are
to be paid. A restraining order Is
asked postponing the meeting until a
final determination of the mandamus
suit now pending in supreme court
which has been set for hearing or
April IL.