The Wallace miner. [volume] (Wallace, Idaho) 1907-current, 1922-01-26
NJ CARTHYT TELLS WHY
FAVOR BUYING STAR
Sound Reason That
Fully Justified
His Action
IN INTEREST OF HECLA
Berg s Testimony Badly Shat
tered--Bruce is Worsted by
Gray's Cross Examination

] III viz AtHtAA VI AlG LAY ~fNilllAH NtN6
against the Hecla and Bunker
Hin companies as published in
the Miner last week ended with
Mr.. Mccarthy, president and manager
of the Hecla, on the stand. Continuing
the examination Wednesday morning,
Mr.. Higgins introduced a map showing
the course of the Star crosscut from
the Hecla and the map and report
prepared by Oscar Hershey, showing
and describing the ore and probable
ore in the star mine, and proceeded to
question the witness for the purpose of
showing that he had entered into the
contract with the Bunker Hill without
making proper investigation of the
feasibility of operating through the
Hecla and without sufficient and per-
sonal examination of the Star Objec-
ton was made by Mr.. Gray and Sena-
tor Turner and argument consumed
most of the forenoon. The court al
loved the questioning to proceed but
said that the question was the same
that he had passed upon before. in
volving lack of investigation and dis
erection by Hecla directors, and added
that if it appeared to be nothing more
than imprudence it would not get very
far with the court. In the afternoon
Senator Turner read numerous au-
thorties showing that the courts could
not interfere with the internal man
agement of corporations unless il
could be shown that the directors had
been guilty of fraud or had exceeded
their corporate authority. However.
the court permitted the examination to
proceed. which proved to be largely a
reiteration of questions asked the wit
ness on previous examination to which
objection was repeatedly made by the
attorneys for defendants, some of
which were sustained. AS the ques-
tioning by Mr. Higgins proceeded on
the details of the Hershey report, at
tor eys for defendant again protested
Senator Turner describing it as too
much husI for a very small nubbin."
and the court interposns the comment
that at comes down to this. Mr. Nc
Carthy thought the Star a good buy.
and it was matter for his discre-
ton"
The questions by Mr.. Higgins COW
cred a wide range the evident purpose
being to show that Mr.. Mccarthy had
not gone into the investigation of the
Star carefully and that he was actu-
atod by other motives than the inter
est of the Hecla company.
Why He Favored Purchase of the Star.
Ignoring the prolonged and irrele-
want direct examination as chaff, John
f.. Gray. on cross examination, pro-
ceoded with one question to disclose
the kernal of wheat for the benefit of
the court. although it may safely be
assumed that the court had discovered
ii already. He asked Mr.. Mccarthy to
briefly summarize all the factors con-
sidered by him in making up his mind
that the Star was a desirable purchase
and which induced him to recommend
10 the directors of Hecla to join the
Bunker Hill in acquiring the property.
Mr.. Mccarthy said that he favored
the purchase of the Star from infor
nation obtained through his own in
yestigation when he had urged taking
an option on the property years ago.
supported by the report of Fred Green.
well known geologist, and it's verified
ion by Horace V. Winchell. a geOlo-
gist and engineer of national reputa-
ion; the report of Mr. Hershey and
the geological conditions
described by him. indicated that the
)re would continue to great depth; the
he obtained regarding the
star through hearing the evidence and
seeing the maps presented in the Star
Federal litigation. showing that the
star was a continuation of the great
Morning vein: his knowledge of the
Morning mine. which had been large
producer for many years and in which
he ore had been persistent and rich
It great depth; and finally that the
Iecla company had a large plant and
{ was to the interest of the company
o use it to capacity as well as ena-
bling the company to expand its oper-
ltion and thus prolong the life of the
company These We're the conditions
hat influenced him at the time and
which confirm his opinion now. Fur
her explaining his conclusion Mr.
fe.ontinued or page So