The Wallace miner. [volume] (Wallace, Idaho) 1907-current, 1919-12-04
Charge Directors
With Gross Mis-.
management
PAY DEBTS OF STEWART
Many Leins Filed by Employ
es With Heavy Costs and
Penalties
pPLaCATuoN for the appoir

~ over the assets and effects Of
= the Nalbob Consolidated Min
ing company is contained in com
plant filed in the district court by ].
A. Johnston, plaintiff, residing in
spokane, whose attorneys are James
A. Wayne, of this city, and John P.
GRAY. of Occur d'Alene. AS a basis
for this application the complaint al
leges that the election of ]. E. Har-
rington, Charles T. Lark, William
Beaudry, Nash Lockwood and Charles
w. Saacke as directors at the meet
ing of the stockholders held at Kel-
logg in August, 1918, was fraudulent
and void, as was also the election OF
John H. williams to fill the vacancy
caused by the resignation of Charles
r. Lark; that the election of these di-
rectors was accomplished by Illegally
voting 100000 shares of treasury
stock; "that the voting of said stock
was sought to be authorized by the
directors elected at said meeting by
showing the issuance of said 100000
shares of said treasury stock in
certified list of stockholders, but that
said issuance of stock was never leg
ally or regularly authorized, but was
voted in favor of said persons as di-
rectors and was Immediately atter
the holding of said meeting, such oook
entry as has been made showing the
issuance Of such stock and certifying
the issuance thereof at once can
celled." That the election of J. E.
Harrington and c. T. Lark was fraud
ulent and void for the further reason
that neither has ever been a bona t1de
stockholder as required by the by
laws of the company, but notwith-
standing that fact, j. E. Harrington
and C. T. Lark were also elected pres
ident and secretary Of the corporation
respectively. 1t is also alleged on in
formation and belief that John II.
Williams has never been stock
holder.
CHARGE Gross Mismanagement.
It is further alleged that the busl-
ness affairs of the company have been
grossly mismanaged by Harrington,
Rockwood Lark and Williams. the
said William Beaudry having, as the
plaintiff alleges, refused to participate
in the management with the other
persons mentioned That on or about
March 19, 1919, the directors or the
,Nabob company delivered to Brackett
Todd, Wheat & Wait promissory notes
of the corporation aggregating Slo'-
coo, that said notes were fraudulent
and void, having been issued in pay
fnent Of indebtedness Of the Stewart
company for which the Nabob was in
no way responsible; that the pre-
tended Indebtedness existed long pri-
or to the organization of the Nabop
company, and was the outgrowth OF
dispute between the Stewart Mining
company and the American Smelling
& Refining company In connection
with the terms Of contract and the
settlement for ore shipped by the
Stewart to the smelling company;
that Bracket, Todd, Wheat & Wait
were employed by the Stewart TO
prosecute the claim, which was SUD-
sequently settled by compromise, they
claiming $4,000 for their services;
that the Stewart company compro-
missed by agreeing to pay them $l5,-
900, and that this is the debt Tor
which the notes of the Nabob COM
pany were given; that the service ren :
dered was Of little or no value and II
IL further alleged on information and
belief that lockwood & Lark, attor-
neys and directors Of the Nabob, re-
ceived so, per cent of the fee.
Danger Of Insolvency.
Gross mismanagement is alleged In
permitting the company to continue
operations when already heavily In
debt, which resulted in employees filing
liens aggregating more than $Sooo'
that the penalties on these liens no"
amount to more than $4,000; that at
torneys fees are claimed in the sun
of more than $4,000 and other costs
amount to more than $3.50; that the
Indebtedness to merchants, materia
men and others amount to more thaf
$4,000. That through gross misman'
aeement permitting these debts to ac'
cumulate the market value OF th'
stock has fallen from 1914 cents to =
That the directors are now attemptinf
to make loan OF $4,000 to tide tn
company over the present fnancia