The Wallace miner. [volume] (Wallace, Idaho) 1907-current, 1918-08-15

George, of New York, upon a
majority of the stock of the Hy-
pothek Mining & Milling COM
pany expires today, August Is, and up
to the hour of going to press the re-
quired payment had not been made
Inquiry at the First National bank, in
which part of the stock is held in es-
crow, this morning drew out the state
ment that no payment had been re-
ceived and that no word had been re-
ceived from Mr.. George regarding IT,
Otto A. OLSON, secretary and manager
of the Hypotheek company, and whose
holdings are all tied up under the es-
crow agreement, stated that he had
no information on the subject; that he
had wired Mr.. George two days before
regarding the payment, but that he
had received no reply. Mr.. OLSON
further stated that he had until within
the last week felt absolutely confident
that the option would be taken up,
and particularly since the visit of ].
H. Kern, president of the Hypotheek
company, to New York in July. At
that time Mr. Kern was assured by
Mr. George that the money would he
deposited to pay for the stock on Aug
ust s. and that Mr.. Kern had returned
home with absolute confidence that
the deal would go through. The option
expires today and the continued sill
tl,n Of
that the payment will not be made.
Terms Of Option.
The option on Hypotheek was given
to Mr.. George last April under which
he agreed to pay Is cents per share on
or before August Is. 1t was further
agreed that Mr.. George would pay all
assessments levied during the life of
the option. While this agreement was
entered in as applied to 100000
shares optioned by Mr.. Kern, 1t was
also stipulated that the holdings of all
stockholders would be taken under the
agreement and Mr.. Kern was author
lied to so advise them. This he did
under date Of April 49, explaining the
reasons which impeled him to dispose
Of his holdings chiefly due to the ad-
verse conditions for mining on account
of the war and the necessity of levy
ing further assessments. He explain
ed that he desired the stockholders to
have an equal opportunity with him
self, but refrained from advising the
stockholders in the matter. There ap-
pears to be no reason to doubt that
Mr.. Kern and his associates in the
company acted in perfect good faith,
and that If the option fails, as now
seems certain that they will be hit
harder than any one else.
Price Of Stock Scars.
Mr.. George made it known at the
time of the option that he desired 80
per cent of the stock. The Hypotheek
is capitalized for 100000 shares and
considerably less than so per cent re-
sponded to the option agreement He
therefore entered the market to pur-
chase the stock at a price up to 10
cents. AS result the price of the
stock advanced rapidly and was soon
above the option price. Spokane brok-
ers are understood to have sold short
in anticipation of a slump in the
market. In this they miscalculated,
for the stock continued to advance un-
I'll sales were made above 80 cents.
Charges of crooked work We're made
In Spokane directed at the officers OF
the Hypotheek, but these were quickly
proved to be without any foundation
whatever. In fact, the deal was in
vestigated and pronounced absolutely
clean and above board so far as the
officers of the Hypotheek were con-
cerned. 1t was shown the wild flight
Of the stock was due to short selling
and manipulation by Spokane brok-
ers.