Bisbee daily review., 1918-02-10

SUIT FILED IN new YORK COURT DISCLOSES
METHOD OF FINANCIN G MONSTER Chief AT
JEROME, BY PROMOTER GEORGE GRAHAM RICE

Clyde Hoyt. the well known engi-
neer OF the Verde district. has brought
suit in the supreme court of New
York county 10 recover from George
Graham Rice S13.45O. which he al
leges Is due on a prOmissOry note
given in part payment for the Mon
ster Chief property.
The details Of HOyt's suit. as given
by the New York Cub, are published
below:
A new chapter on high and low
finance. applied to the flOtatiOn of an
unproven copper prospect in Ysva-
pal county. Arizona. by George Ora
ham Rice-which would constitute a
worthy addition to that financial lit
erature's great work. My Adventures
With Your MONEYS likely to be
written into the court records at the
/ trial OF suit begun this week against
the redoubtable &c. G. by a mining
engineer who sold TO him the property
of which the Copper Chief Mining
company" is composed.
Among other details in this episode
on Rioe's financing and unloading OF
the Copper Chief prospect which are
expected TO be laid bare at the trial
of this case, will be the sensational
I fact that, although Rice has sold be-
tween 100000 and 100000 shares Of
the ownership or "quasi-plunder"
stock of this Monster Chief Copper
Mining company. at an estimated prof
it OF 100000. neither he nor his as
sociates in that concerns manage
! at M cd
doing any development work on its
property. despite numerous promises
that such work was about to be begun
on their own initiative or through an
alleged working agreement with the
Green Monster Mining company.
Merely Prospect
The suit against George Graham
Rice which is thus counted upon TO
bring forth these sensational revela-
tons on the Rice methods applied to
the financing and marketing of the
Monster Chief has been brought in
| the supreme court in New York
county by a mining engineer OF Je-
rome, Ariz.. named Joseph Clyde
Hoyt. who obtained for and sold 10
Rice the 10 original claims and some
additional claims which now make
up this Rice copper prospect IN
Arizona, whose one best attraction
for investors to date has been found
in its widely advertised adjacency to
the Green Monster Mining company's
fairly established claims. and TO the
Jerome Portland property.
Hoyt has begun this suit against
Rice for the recovery of the balance
amounting to $1S.450. still unpaid
and owing by Rice on a promiSsory
note for $4,000 given by &c. G." in
part payment for the claims consritut-
i ing Monster Chief property. which
was due and payable on October 10,
last. Hoyt Acknowledges receipt Of
SII,55O from Rice on this $4,000 note,
but is suing for the SlS,450 still due
thereon, with interest from October
l15. together with the costs OF the
action.
The note on which Hoyt's suit was
thus based was drawn and rendered
by Rice on October %. 1916. 1t reads:
ION October 10. 1916. after date. |
promise TO pay TO the order Of Joseph
Clyde Hoyt. twenty-five thousand
| ($25.O00l dollars at my office. % VIII
liam street, New York city. Value re
ceived.
This note is given pursuant to
the terms OF an agreement between
Joseph Clyde Hoyt and George Ora
ham Rice bearing date October "a,
1916. and the payment herein provid-
ed is subject to the terms and condl'
tions OF the said agreement.
(Signed1
GEORGE GRAHAM RICE"
The agreement thus referred TO,
which was also dated October -.
1916. gave Rice the privilege of buy
ing from Hoyt. and through that min
/ ing engineer, as agent for others, l9
claims, six options on claims and 4
notice OF location" Of a fractional
mining claim-all for the relatively
small sum of $4,000.
or this purchase price. Rice was
permitted by the terms OF the agree
ment to pay all except $4,000 in
notes. This agreement also stipulated
that he should organize the Monster
Chief Mining company with capital
OF zoe, 00O, 600 shares. having par
value OF 81, and lay aside l.OSO.OVV
shares for himself as ownership
STOCK. 10 De lelu IN SsCiON tCAfSANtN
". but obtainable by him upon pay
ment of the $4,000 in cash and upon
the taking up of three notes. one toE
SlI. 200. and two for $4,000 each The
remaining $4,000 shares or the stock,
according to this agreement, were 10
remain in the company's treasury.
Tale Of High Finance
The terms Of this agreement were
thereafter changed slightly by donat-
ing $4,000 shares Of the ownership"
stock TO Hoyt. who later sold them
back TO Rice for $4,000. which was
then used 10 compensate a certain F.
W. Carroll for the 10 claims on which
Hoyt had secured a purchase option.
The 1000. 900 shares of ownership"
stock thus placed in escrow. but avail.
able for Rice. as he paid for same,
was held temporarily by Hoyt's attor-
uey. John ]. Lawrence. II was fur,
Their stipulated that none OF the $780,
GOO shares OF the treasury stock
should be marketed except at rate
Il ~ e.