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Show May 4. 1956 The Western Mineral Surrey, Salt Lake City, Utah Page 3 Court Woes Reign, May Tie Up Federal Action A group of stockholders in Federal Uranium Corp. have charged that their uranium investments have turned into a real estate7 venture. They are suing the company for $1,800,000. A second court action against Federal may tend to delay or at least slow the corporations distribution of shares in subsidiary Radorock Resources, Inc. A group of New Mexico stock- holders are attempting to prevent the company from turning over the Radon uranium mine in Utah to Radorock in return for Salt Lake City SEC Manager Resigns Position Alexander H. Walker, Jr. Salt Lake manager of the Securities and Exchange Commission this week tendered his resignation in face of a transfer to Chicago. Prior to the resignation J. Sinclair Armstrong, SEC chairman, announced appointment of Edward H. Rakow as attorney in charge of the Salt Lake City branch. lie will succeed Walker. In reporting his resignation to Milton J. Blake, regional director Walker said his job in Salt Lake City, where a new industry was being born, largely financed by investors of modest means, who were unfamiliar with the issues handled by the large, established brokerage houses . . . was a challenge. ' Rather than move to Chicago, Walker expressed his desire to stay, in the west to continue to work for the industrial expansion of this area. He plans to go into business in Salt Lake. According to an SEC release, Rakow has assumed his duties in the Salt Lake office. He served 10 years as attorney in charge of the Commissions branch office in Detroit, Mich. The Commission also proposes to assign an additional attorney and two inspectors in the Salt Lake office because of the increased financial and securities activity in the area. According to the release the increased staff will reduce the necessity which has previously existed of sending personnel to Salt Lake on temporary duty in order to meet the requirements of the area. the Radorock shares. The first Federal Court suit is brought against Federal in Albuquerque by the following plaintiffs: Wayne, Robert R., and Rufus R. Sowell, Alfred J. Quant, William B. Wallace, and James O. Beall, all of New Mexico. Also Morris J. and Dan Schwartz and Faye Walters of California and H. K. Sowell and Paul F. Kruse, Jr., of Oklahoma. The plaintiffs accuse Federal of leaving them minority stockholders in a corporation whose entire capital is involved in the purchase of unimproved real property near the City of Colorado Springs, Colo. The plaintiffs said the situation started when Melvin D. Rueck-hauAlbuquerque lawyer and and Federal official, obtained an option to lease 10 claims in San Juan county, Utah known as the Fourteen group, in 1953. He paid $1,000 for an option on the claims, agreeing to pay an additional $9,000 when he exercised it, plaintiffs report. Plaintiffs joined Rueckhaus when he formed a trust in which he said he would sell 60 units and would be vested each with a interest in the s, unit-hold- er one-sixtie- th proceeds. . Plaintiffs purchased shares in the units. They now charge that said trustee failed to sell all of said 60 shares and disposed of 39 shares in said trust and received $36,000 cash which he used to exercise the option and pay expenses. The rest of the money was to remain in trust. In 1054, plaintiffs state, Rueckhaus set up Fourteen Group Inc., with stock going to a representative for Floyd Odium. Odium also bought four shares in the new trust for $190,000, they said. A merger was proposed and stockholders were told they must turn in their trust certificates to Catorce. Corp. if the proposed merger were to take place. According to the plaintiffs, 10 companies were included in the merger. The completion of the merger was to bring new Federal Uranium stock in exchange of the trust certificates. DMEA TO HELP NOW Ol Jato employees view drill holes which show high mineraliza-tion on companys Blue Jay claims on the Elk Ridge property in southern Utah. A DMEA iato loan will laid the company to drill behind the test holes to determine the channel direction, extent. In Ore Zone At Raven Mine; Plans Drilling On Other Utah Lands 01 Mining operations at the Raven stockpiles run to .40 per cent mine in the Red Canyon district U308 on radiometric tests. Samthis week are breaking into ore ples on the ore face were tested according to Owen J. Bunker, at .28 per cent and .38 per cent. The ore face outlined by the vice president of Ol Jato Uranium mintwo of After first drill hole indicates a 10 foot company. days 40 tons been more face of commercial ore, Bunker have than ing conare said. stockpiled and operations Raven mine is located on one of tinuing. Max The mine Mr. Bunker and Mangum, three Raven claims. president of Ol Jato, returned adit is approximately 1600 feet Thursday from an inspection tour of company properties in the area. They report several operations underway at various loca- tion. Ol Jato this week announced they received approval on ' a DMEA loan for $8400 to conduct drilling and exploration on Blue Jay claims located on Elk Ridge, San Juan county. Claims are in 18 E. Sec. 15, Ol Jato holds an enviable position, Bunker stated, as it is an income company with all expenses mining handled by leasing Plaintiffs said they were not delivered Federal stock but shares of Catorce Corp. Suit has been filed in the Bernalillo county district court against Rueckhaus, Fed S. Wat- operator. He also noted Ol Jato claims kins (his partner) and Federal had been carefully selected by Uranium. Radorock Problems qualified men placing the comCourt action against Federal in pany in a position as good as the matter of their new Radorock any mining firm in the area. The Hoover Goins Entry subsidiary consists of a group of company has 100 claims. At the Raven operation Bunker The Hoover Drilling Co. in- -' New Mexico stockholders atsaid grab samples of ore from corporated this week in Denver tempting to stop the transfer of for 100,000 shares at $1 per share. the Radon mine and adjoining Otis deLong, Jr., 630 E., 6th Hot Rock prospect to Radorock. In return for the properties Ave., Denver heads the new busiZinc production in the western Federal would receive 5,637,493 states was up 700 tons in Februness which will enter the genshares of Radorock. Half of this ary over January totals with proeral mining field. Directors and incorporators of stock was to be distributed to duction figures of 22,700 tons rethe company include: Mr. deLong, Federal stockholders and the coverable ore. Violet C. deLong and Robert H. other half retained in the FedOutput in Idaho increased 38 as an investment. eral treasury Schweitzberger. percent, mainly as a result of the resumption of operations at a number of mines that had been shut down by a strike from Notice to Stockholders August to January 31. Important zinc producers affected by the strike included the INC. Frisco, Page, Tamarack and SidS, Zinc Totals Zobm Two Mining Cos. Incorporate In Denver, Colo. Two general mining firms set up shop in Denver this week, and a third established firm received approval for an agency office. Warrior Mountain Mining Co., under George W. Harper, 104 Broadway, Denver, incorporated for 50,000 shares with no par value. Directors of the company are: Arthur T. Luttrell, Glen G. Huber, Louis Chrysler, C. E. and Harper. Second company is Florida Minerals, Inc., handled by Hynie & Hotchkiss, Grand Junction. Incorporating for 50,000 shares, stock is worth $1 per share. Directors include: C. C. Sterns, Donald Gar-rigu- es J. G. Membery, G. W. C. Gold and SidDaniel Sibley, ney Ney. Sandia Mining and Development Corp., a New Mexico corporation also received certification of business and announced their Denver agent as Prentice-Ha- ll Corp. System, 420 Denver Club Bldg. W. Wright, BANKERS URANIUM, wishes to request all new stockholders to request their stock from their brokers and have said stock transferred to their name Immediately. So they may derive all bene-ift- s as a registered stockholder of this corporation. Transfer agent, Marcellus K. Snow, 70 First Security Building. BANKER'S URANIUM INC. By Board of Directors 1 1 Washington. Output in New Mexico during February was nearly the same as January totalling 2,380 tons. The Bayard fine and mill in Grant county resumed production on a limited scale after a shutdown of more than two years. There were small declines in Colorado, Montana and Utah. The strike at the Jack Waite mine in Montana was settled in Jan. and operations were resumed Feb. 1. Early drilling tests by the Atomic Energy Commission and recent company surveys indicate the Raven ore channel is an extension of the Spook mine, Bunker said. Raven and other Ol Jato properties are now under lease to operators, Radio Geophysical of Texas. Ol Jato will receive 15 per cent gross royalties from all ore receipts on Raven claims. Explaining the status of other Ol Jato properties, Bunker said ore is stockpiled on Island Mesa from the companys Lone Butte mine. Radio Geophysical is operating the property. Ol Jato will receive 6 per cent from 5 claims and 12 per cent gross royalties from 12 claims. At present. Bunker said. Radio Geophysical is opening the north end of the mesa, following high ore Indications. A drill is now on location on Sunrise claims in San Juan county, Bunker said. Ol Jato plans to speed up operations on other properties dur-th- e summer, Bunker said. Radio Geophysical will start a drilling program on Maybe claims which lie adjacent to Blue Jay claims in Sec. 15. The Whirlwind mine located on the San Juan river near the Ol Jato Trading post has been closed temporarily, Bunker said, due to excessive hauling expenses. Opening of the Mexican Hat mill will facilitate the mine, he said. Ol Jato plans a stockholders meeting during May, at which tions will be made public, time a complete report of opera- - ATTENTION ney mines. Moderate increases over January in zinc production were recorded in Arizona, California and east of the Spook mine, a prominent producer in the area. Prospectors - Mineralogists - Rock Hounds e Ore? Arc You Throwing Away Don't Guess - Know What You Find With this New Portable Mineral Lab. High-Grad- Write Today MINILAB Box 332 Murray, Ut. Phone CR 7-37- 80 Please send me information on MINILAB. Address- - City. State. |