Shortly after the receiver was appointed, he applied to the courts for
permission to sell to the Nevada Consolidated for $30,000, which
represented the entire cash indebtedness so far as the receiver knew,
the surface rights to a large acreage of Ely Central and the rights
through Juniper Canyon. This, if accomplished, would have given to the
Nevada Consolidated a railroad right of way that would have solved the
problem confronting it of the transportation of the ores from the lower
levels of the steam-shovel pit. Without such an outlet these ores could
not have been handled without great expense and much difficulty. The
benefits that would have accrued to Nevada Consolidated were almost
incalculable. At the same time, such action would effectually cut the
Ely Central property into two parts. According to the petition it was
stipulated that in selling the surface rights the Ely Central should
cede to the Nevada Consolidated practical ownership, because it was
specified that Ely Central could not interfere in its mining operations
with any rights granted. Attorney Lockhart of Ely Central fought the
receiver and his attorneys and won a victory. The Ely Central property
was saved intact for the stock-holders.
Later, an application was made to the court to sell the entire property
of the Ely Central for $150,000. This was believed to be in the
interests of the Nevada Consolidated. In answer, a petition was filed
to discharge the receiver on the ground that the court originally
appointing him had no jurisdiction. The court finally decided that it
was without jurisdiction, because neither fraud nor incompetency had
been proved, and the property had not been abandoned. The receiver was
discharged.
What has been the attitude of the Department of Justice since the raid
was made? Since the raid the Government has spent several hundred
thousand dollars to disclose sufficient evidence from the books to make
a case of any kind. One stand after another has been taken only to be
abandoned after exhaustive research for evidence to sustain the
original excessive pretenses. Grand Jury after Grand Jury has thrashed
over masses of evidence presented them. Armies of accountants have
worked day and night for weeks and months in an effort to substantiate
the action of the authorities who were led into the commission of a
grave wrong.
The charge that the Scheftels corporation sold fake mining stocks has
fallen to the ground. Government examinations of the properties have
revealed them to be all that they were cracked up to be. Careful and
industrious reading of the mass of market literature sent through the
mails by the Scheftels corporation has failed to disclose deliberate
misrepresentation regarding the potentialities of any of the mining
properties.
Public-domain text, read in full here on John Shaqi.
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