The Wallace miner. [volume] (Wallace, Idaho) 1907-current, 1922-08-03
TARBOX CASE SETTLED
AMICABLY OUT OF COURT
SUMMARY OF ALLEGATIONS AND
ANSWER FILED BY THE
DEFENDANTS.

Threatened litigation between factions
of the TarboX Mining company ha'
been settled amicably out of court
The case was dismissed last Tuesday
upon request of attorney for plain
tiffs. thus dissolving the temporary
injunction restraining the company
from proceeding with the current as
fsessment and holding the annua
meeting of stockholders called fol
July II. The proceedings were start
ed just at a time when the directors
had arranged to finance the company
through the sale of treasury stock
and now that the litigation is out OF
the way it is understood that the
parties holding the option on the
stock will meet the payments as or
iginally agreed upon.
The action was brought. in the dis
trict court on August Is by A. II.
Fox, John A. Lewis, n II. Gunder
son, Chris Traxell Charles Bollinger
and Henry Sonderegger through their
attorney w. H. Hanson, against the
Tarbox Mining company Frank J.
Davey, William Daxon and Richard
Daxon, directors, and John F. Fergu-
son, secretary treasurer. Plaintiffs
asked the court to appoint a receiv-
err to take over the affairs of the COM
pany; to declare current assessment
null and void and enjoin it's collec-
ton; to enjoin the holding of the an
nual meeting set for July II until
the books and accounts of the COM
pany could be inspected under sup
ervision of the court and that the
election of William Daxon be held
void The court issued the restrain
ing order and ordered the defend
ants to appear on August l and show
cause why a receiver should not be
appointed and the temporary re-
straining order be made permanent
Allegations in Complaint.
The grounds alleged in the COM
plant for enjoining the holding of
the annual meeting were briefly that
an alleged fraudulent option on all of
the treasury stock had been given to
Therrett Towles, of this city, for the
of "in some manner permit
ting some person friendly to the de-
PENDANTS to vote said stock at the
next annual meeting of stockholders
called for July IT," and that certain
representations concern
ing the condition of the company, its
operations and the sale of treasury
stock. had been made to the stock
holders to secure proxies for the an
nual meeting.
The apparent grounds for enjoin-
ing the assessment sale alleged in
the complaint were that generally
assessments had not been
fully collected, and that William |
Daxon had not been legally elected a
director to succeed w. w. Adams, |
and that therefore when the |
orders levying and postponing the |
assessment were made there was not |
/ legal meeting of the board of di-
'ectors present, as William DaXon
attended and performed the duties of
director at both of the said meet
ngs.
As apparent grounds for a receiver
t was further alleged on information
md belief that the companys money
lad been squandered by its officers
md it was further charged that the
was deteriorating. that ex
lorbitant salaries were being paid to
he president and secretary, that the
were hindered in making
n inspection OF the books of the
that a conspiracy existed
mong the directors in control to {
ontinue in control by not giving the
ries and expenses were paid with
ut authority, that the company was
Indebted to various persons. the
mount of which the plaintiffs did {
ot aIlege, and that the company was
n imminent danger of insolvency
The defendants appeared through
heir attorneys Carlton Fox and
'herrett Towles. and by demurrer as
veil as by affidavits fully met and
enied all of the charges of the plain
ifs. The showing was full and COM
lete and comprised a very lengthy
=
of Frank j. Davey, Richard
)axon. William Daxon and A. s Moss
f Caldwell, Idaho Attached to the
of Mr. Davey were maps
howing all the property of the COM
any and all underground workings.
Ferguson's Affidavit.
In addition to denying the charges
4 the complaint Mr. Ferguson's af-
davit showed the due and legal cleo
ion of William Daxon at a special
netting of stockholders held April 3,
922. at which meeting two of the
Gunderson and BOllinger,
oted for William Daxon as a direct
r; that the company was incorpor- ,
ted in July, 1900, and now owned &c
npatented mining claims, three
-actions and two mill sites; that up ,
~,