Bisbee daily review., 1918-11-24
OLD HAT CLAIMS. TANCLE UP IN
 NEW LITIGATION
Daily Arizona Company Now Is Sued by Armour Men for Return of Alleged Loan of $2C,O0O.

: TUCSON. Ariz-, Nov. 23.-The sec ond group of investors in the opera | tions of the Daily Arizona Consolidat- ! ed Copper company. Joseph A. Chap 1 man of Columbia, Tenn. and C. F. i Hagedorn of Chicago, brought suit in ' the superior court Saturday 10 get their money back. They advanced | S20.00O last August for the purchase | of additional claims. Both are off eials of Armour & Co. 1 The suit is directed against the { Daily Arizona Consolidated Copper i company. Southern Arizona Bank & [ Trust company. J. G. Hancock. W H. Daily and Emerson O. StrattOn. Judg- ment is asked for the S20.000 ad- vanced
 The allegations of the complain re- veal the plan of the Hancock interests in the mining company to finance a concentrating mill for it. of which
 something has been known on the | street It will be called that when the Hancoeks and MT Logan of Logan & Bryan, the stock brokers. acquired control of the property from the { Daily brothers, they undertook its de- velOpment
 They made creditable progress. Ma chinery was installed at the Copper ! Princess tunnel and extensive devel- Opment work done. It is learned from the Chapman Hagerdorn complaint that J. G. Hancock of Chicago inter ested the plaintiffs and that subse- quent to the loan of S20.000 they con- nc mately S150. 900 additional for the in- stallation of a concentrating mill and for the purpose of investigation of ! transportation facilities. road condi- tions and site for mill
 Charge Misrepresentation. Chapman came to Arizona with c. g. Hancock. treasurer and general manager of the mining company. to look over the property. After he had been sent out to the old Hat district he changed his mind about investment in the mill It is alleged in the com plaint that J. c. Hancock had misrep- resented the tonnage of ore blocked out and the average grade
 Development work on the property has been at a standstill for many months now The point has arrived when the HancOck-LOgan interests will have to make new arrangements to carry out their program and 1t has been apparent that a re-organization of the company and possible resumD- tion of the control by the Daily inter ests was probable. if not. indeed. i'm minent. J. G. Hancock was a recent visitor to Tucson and Will H. Daily is now devoting the mayor portion of his attention to the company's affairs. Dr. w. H. Martin. president of the company. arrived on Thursday from his home at Kokomo. Ind. and was in conference with the Daily and c. :. Hancock
 Use of s2o.ooo.
 The use made of the S20.000 se- cured from the Armour officials was an important link in the ambitious project conceived by the Daily Ari- zona directors. It was designed to pay for three claims lying between and separating the two major groups of claims owned by the Daily Ari- zona on Marble peak in the Old Hat district. These are the Peacock. Cop per Matte and Chalcopyrite. owned by Emerson O. StrattOn- The posses sion of the intervening claims was necessary to economical development of the upper group. which could be most advantageously done by tunnel from the lower group.
 On August 2S he gave an option On these claims to J. c. Hancock and W. H. Daily. acting as agents for the Daily Arizona Under the agreement he was to place deeds to the claims in escrow in the Southern Arizona Bank & Trust company against the s20.OOO also held by the bank until litigation involving the claims in the deal had been settled.
 Claims in Litigation.
 This litigation was the receivership suit instituted by the opponents Of c. N. Wilson who were stockholders in the StrattOn Copper company. which had bonded a group of Elmer sons claims on the other side of Marble peak The Stratton company also had acquired rights to the three claims under discussion. The Wilson case Is styled George ?. Myers. re- ceiver of the Stratton Copper com pany vs Emerson O. Stratton ct al
 The deal was to be completed If Stratton succeeded in freeing the claims from the incumbrance of the previous agreement with the Stratton company. In such event Hancock and Daily would exercise their option and tha hank womb nav over tha