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Show STEWART SUIT HAS J CREATEDJSUTEREST Carter Gives Reasons Why Receiver Is Asked for This Company. Thm i. a considerable local interest in tho Stewart Mining- company, and the suit of Edward J. Carter against F, Augustus Au-gustus Meinze asking that a receiver bo appointed for the organization naturally has aroused a great don I. of local comment com-ment and concern. The following statement state-ment of the action has been received! from Spokano; The complaint recites that a special! meeting of the directors was attempted to be held In Now York City on July 20. 1911. of which no notice was received j by Carter, who was In New Vork at the time and conversed on July 19 with: IIchiBo. The president of the compuny. ' however, railed to notify him of the' meeting to prevent hln being present 1 to oppose the alleged fraud upon tlie) stockholders, which. It Is said, wua the Intention to perpetrate. 1 It. Is alleged that Helnze, Bacon and Glffnrd attempted to enter into a purported pur-ported agreement with Hart for the transfer to him of 225,000 shares of the treasury stork of tho company without any consideration therefor at that meeting. meet-ing. Search for Records. Carter went lo New York April S, 1912. lo examine the records or tho alleged meeting-, but was then informed by Heiiine that the records were at the company's com-pany's office In Butto. Mont. He went to Butte on April 26 and requested Sec-rotary Sec-rotary Bacon to permit him to inspect the books, particularly the records of the meeting of July 20. These records, Bacon Insisted, wcro in New York. Later the same day Carter was advised that the records had been found. On Inspection It developed lliat there was no record of the meeting of July 20, but later Bacon produced from his Hies a purported, copy of the minutes of the meeting. They recorded a letter dated April 12, 1911. from Hclnze to Hart, wherein, on behalf of the corporation. Hclire granted to Hart an option on 225,000 shares of the treasury stock of the Stewart company, com-pany, delivered to Hart upon compliance tlsat he secure a smelting contract for the Stewart company at 50 cents a ton less than the company was then paying; pay-ing; that he secure at least 90 per cent of the stock of the Coeur d'Alenc Development De-velopment company or the alternative of running a tunnel from Dcadwood gulch Into the Stewart mine at tho same depth as the Silver King tunnel; that he secure se-cure three-fourths of the stock of the Coour d'AIone Metal, Mining & Smelting company, and. to arrange with tho State Savings bank of Butto to take up noteM and obligations of W. Mc. While and F. Augustus Hclnze. Fourth, to lease a mill for the Stewart company In tlie Coeur d'AIcno district. Where the Money Went. The minutes also showed that 225,000 shares of stock was transferred to Hart at the meeting, for the reason it appeared ap-peared he had succeeded In making a smelting contract for the Stewart at So cents a ton less than the company had bcon pasing. Tho company's monthly revenue Is placed at from 510.000 to 553,000 by Carter, Car-ter, who says that ore of a value of $950,000 has been produced during- the last two years, and that all of this money has been taken by Ilcinze to the company's Now York office and that ho has refused to account for It. Tho complaint also charges that In the last sixty days Hclnze has had all the ore bodies in the mine measured and valued by an expert engineer for the express ex-press purpose of mortgaging it Tor his own personal use and benellt, with the alleged fraudulent Intention of depriving the shareholders of their Interest. The course of Helnr.c's dealing Is to prevent the shareholders from securing dividends and to create a condition in tlie stock market by which the shareholders will be compelled to sacrifice their holdings and thus enable Hclnze again to secure control of the stock for a fraction of lis true value, according to the complaint. The petition adds that If Hclnze's present course of action Is continued he will soon cause the Stewart company to become Insolvent In-solvent Though Carter has been a director of tho company slnco 1906, he says he has never received notice of any meeting nor hao he ever been present at any meeting. He says ITcinzo has drawn a salary of 56000 a year, while Secretary Bacon drew 59000 a year and that other ofTicers also ha.ve received salaries much beyond the value of the services rendered. ren-dered. After being advlHed of the purported action of July 20, and tho stock transfer trans-fer to Hart. Carter says he requested Helnze to take some action to rescind the purported sale or call a meeting of the board of directors for that purpose, but he refused. Fraud Is Alleged. Carter aserts that the transfer of these 225,000 shares was a fraud because no consideration was paid, tlie contract for a lower smelting rate having boon made by Hclnze without any assistance from Ha.rt; the tunnel having been built and paid for by the Stewart company; the notes In the bank at Butte being personal obligations of White and Hclnze. and the company never having received any benefit ben-efit from them, and being In no way responsible re-sponsible for them; the mill having been leased by Secretary Bacon without assistance as-sistance from Hart. The option to Hart by Hclnze Is declared de-clared illegal as It was "unauthorized and was for the express purpose of defraud-J Ing (ho shareholders and dissipating and wasting the company's property, and that the subsequent transfer was a xubterfuge to enable Hclnze to secure control of the 225,000 shares of treasury 3tock." Carter potltions that the receiver cause an accounting to be had with Hcinze. Bacon. Glfford and Dunham, particularly regarding all receipts and disbursements of tho company during the time they have acted as officer or director: that the alleged transfer of 225.000 shares of treasury stock to H. U. Hart of Salt Lake. Utah, be conceded, and that Helnzo be requested lo surrender them to the receiver. In the event that such stock Is now held by Innocent purchasers that Ileinzc be requested to pay the par value thereof, together with any increase in-crease above tho par value that may be shown by the accounllng. That each of the defendants be required re-quired to pay to tho receiver all money received as salaries to which tlioy wore not legally entitled: that judgment be entered en-tered against ea-h of the defendants for tho value of all property appropriated or fraudulently transferred, and that Heinzc be rcuueslcd to pay to the re-1 reiver all sums received by him from the proceeds of the properly, together with Inturest at the legal rate from and after the date ho received the money. "The complaint covers only the more llagrant violations of the law by the management of "the company," Carter said In a statement aftr his counsel had filed tho complaint at Wallace, "but It Indicates plainly the total disregard for the Interests of the shareholders which has characterized Ilclnzc's actions. Financial Condition. "The suit was instituted to conserve for the shareholders the great property In which they have Invested their money. There Is no question as to the enormous value of the mine Itself or Its great earning earn-ing power. "It ha-? been repeatedly asserted that the company has a rash surplus In Its treasury variously estimated at. from 5300.000 to 5400.000 and that largo dividends divi-dends are assured not later than Juno or Jnlj. , "As a mutter of fact, the company has no such sum on hand and the balance bal-ance sheet of February 29. 1912, shows an actual shortage In cash assots over liabilities of 51206, although Included In these cash assets is a loan of ?S5,515 to TTeinze's Ohio Copper company, which loan has since been Increased. The actual cash available to the company on that date was 546,345, Including unsettled proceeds pro-ceeds or ore shipments, which Ileinzo claimed there was still due him personally, personal-ly, as shown by the same balance sheet ?57.C09." San Francisco Oil Stocks, .lames A. Pollock & Co.. bankers and brokers, furnish the following, received over their private wlro yesterday after-noon: after-noon: I Bid. Askcd. Caribou $ 5 1.10 Monte Cristo 1,30 New Pennsylvania 48 .50 Palmer 58 .60 Silver Tip 90 New York Mining Stocks. James A. Pollock & Co., bankers and brokers, furnish the following, received over their private wire yesterday afternoon: after-noon: NEW YORK LISTED STOCKS. I Sales-I H. L. IClsc Chino Copper 2.100 301 29 CO Goldficld Con 4.300 41 4 4 Nevada Con 1.400 21 a 215 218 Ray Consolidated ... 3,600 19 19 19 Tennessee Copper . . 500 13? 43i 43J Miami Copper 700 26 256 26 Utah Copper 6.200 63i 626 623 Inspiration Con 191 19 19j NEW YORK CURB RANGE. . 1 Sales-! H. I L. IClsc GIroux Con 200- 5J 5J! 51 Nevada Utah 1.000 31 3i 31 Braden Copper 1.000 55 5i 5i La Rose 300 3; 3M 31 Nevada Hills 300 11 IX u Mays Oil I 6,0001 33c 31c! 32c Belmont I 100! 10 10 I 10 NEW YORK CURB CLOSE. 1 Bid. !,skod. Ely Consolidated ? .25 5 .30 First National Copper 2.621 2.S71 GIroux Consolidated 5.371 5.62J Yukon Gold 3.371 3.50 New Keystone 2.371 2.75 Nlplsslng 7.$7j S.00 Ohio Copper 1.25 1.30 Ray Central 2.37j 2.50 La Rose 3.50 3.55 South Utah -75 .871 British Columbia Copper . 'l.m 5.00 Bay State Gas 50 .621 Braden Copper 5.50 5.621 Mason Vnlley H-50 11.621 Sioux Consolidated 03 .05 Colorado I .17 .20 Iron Blossom I 1.20 1.30 Carlsa I -03 .05 Nevada Hills I 1.S7jl 2.00 |