Ogden Evening Standard | 1912-01-18 | Page 4 | Famous Mining Suit Decided

H J ; FAMOUS MINING SUIT DECIDED. T H t i A -most important ininmg suit has been ended by the decision H in the federal court of Idaho yesterday, in favor of Hugh C. Wood H f of Ogdeu and his brother and Prank Hagcubarth and against H ' Joseph E. Gainc, secretary of the- Salt Lake Commercial club.. The HJ decision -will be received by mining men generally as a protection H ' in t'he taking of an option und bond on mining properties. Had H I Caine won his suit, an option to buy, and tho depositing of "goal H I faith" money, would have obligated all dealers in mines to pay the H full value of the bond, even though the property on close exam-m exam-m , ination be proved to have been Misrepresented and to be valueless. M, The practice in the western country has been for mining men, in H negotiating for a mine or prospect, to have a bond drawn, stipulators stipulat-ors ing the salo price and, as an evidence of good faith, option money H often would bo exacted. If, on careful inspection, the property B i, met the representations of the owners, the deal might be completed H by. the paying of the balance of the purchase price; in case of an H l adverse report, the option money would be forfeited and the deal B called off. Joseph E. Caine sought to upset this order of things B by forcing Wood and Hagenbarth to purchase the mining prop-fl prop-fl t crty on which, the bond was held, regardless of the fact that their H ; I exports had reported the property as less valuable than represented H in the negotiations leading up to the taking of the bond, and after H , the option money had been forfeited by thenu H i , Were CaincJs contention, which, by the way, was upheld by the H J supreme court of Utah, to prevail, mining men would cease to H , carry on negotiations for mining property by option and bond and H the mining-industry would suffer a set back by virtue of the timid- w. ity-with which capitaL would approach any mining deal.