Copyright USGenNet Inc., 2017 All Rights Reserved USGenNet Data Repository Please read USGenNet Copyright Statement on this page: Transcribed and submitted by Rachel Fuller for the USGenNet Data Repository http://www.us-data.org/ =========================================================================== Formatted by USGenNet Data Repository Chief Archivist, Linda Talbott All of the above information must remain when copied or downloaded. =========================================================================== The Bessemer Herald February 28, 1901 BLOW AT MINING SUIT BROUGHT AGAINST PIONEER IRON CO. MAY EMBARASS OTHER CORPORATIONS. Marquette and Iron County Citizens Greatly Excited Over Outcome of Legal Battle Which Involves Large Enterprises in Both Counties. Attorney General Oren has brought Brown that on the face of the suit against the Pioneer Iron com- papers submitted and without fur- pany, of Negaunee, on behalf of the ther evidence a prima facie case state to test the legal existence had not been made out and that the of the above named corporation and case would have to be tried on its Marquette county citizens are great- merits. The Pioneer people, through ly depressed over the outlook, the their attorney, George Hayden, have result of which it is claimed, if noticed the case at every term of the suit is won by the state, will court since, and Judge Brown for be to seriously embarass nearly all Breitung has fought for and ob- the other concerns organized under tained and adjournment. Now it ap- the state law, and especially the pears that Breitung has in some mining companies. The following dis- manner interested the state and patch from Negaunee to the Soo Daily will have his private battle fought News gives an outline of the circum- at public expense. stances leading up to the suit now That is why the people are indig- pending, which will be one of un- nant and feel outraged. usual interest to mining corpora- Breitung claims that the Pioneer tions and others: Iron company has no legal existence, Negaunee, Feb. 14. - Special - and the quo warrento proceedings in- The people of this city and this stituted by the state are directed to county and the city of Marquette Wm. G. Mather and Geo. A. Garretson, particularly are excited over the of Cleveland, and other officers, act of the attorney general in directors and stockholders, demand- bringing a suit in the name of the ing that they show by what right state to test the legal existence they are doing business as the of the Pioneer Iron Company. If the Pioneer Iron company. Of course the suit is successful it will be the case is in the supreme court. Breit- most destructive blow this region ing bases his claim on several alleg- has had since the deadly iron de- ed technicalities. The one of great- pression of 1893-4, and '95. The est interst to the public is that Pioneer Iron company spent $50,000 the statute under which the Pioneer here last year - $30,000 for the company reorganized is unconstitu- carp furnace at Marquette now in tional. It will be remembered that blast and $20,000 in exploring for previous to 1899 all mining and iron on the Breitung lands within manufacturing corporations had a the city limits of this town. The life of only 30 years and could not Pioneer Iron company has under way reorganize. In that year the con- plans for an investment of $750,000 stitution was amended enabling the in the city of Marquette, compre- passage of an act under which these hending the erection of a great char- corporations could be perpetuated. coal iron furnace, with plants for Under this act the Pioneer Iron com- winning such bi-products as wood pany and all other corporations alchohol, acetate of lime, bi-car- whose corporate life expired pre- bonate of soda, and creosote. If vious to the present time reorgan- the suit started by the state is ized. Now it is contended that the successful the Pioneer Iron company act preliminary to this statute was will be wiped out of existence and either introduced before it was the people here believe that the warranted by the enabling amendment great developments assured them or after the expiration of the 50- will fall through. day limit for introducing bills, in If the suit of the state is suc- either event rendering the statute cessful on certain grounds it will unconstitutional, but Judge Brown, wipe out the Calumet and Hecla com- attorney for Breitung, claims it pany and every corporation whose was off its trolly when the decision life expired previous to the deci- was made and wants it to try again. sion, because it involves the con- If the supreme court should go back stitutionality of the law under on its previous decision business which corporations may reorganize. deals and conditions of years' The fact that the entire suit standing would be voided and unset- is based on the flimsiest of tech- tled. There would be consternation nicalities make the people here from one end of Michigan to the feel that it is an outrage for the other. state to take it up. Breitung also claims that when the Back of the whole affair lies a Pioneer people reorganized, the pres- private contest. Away back in 1857 ident and not the chairman of the the Pioneer Iron company leased stockholders' meeting, executed the 3,000 acres of land in and about reorganization papers. One more claim Negaunee, of Charles T. Harvey, is that the Iron Cliffs company owns well known in the old Sault days some shares of the Pioneer Iron com- and now of Ottawa, Canada. Mr. pany's stock. This is a fact. The Harvey sold the lands to the late stock was bought under a statute the Edward Breitung, of this city, constitution of which is also attacked once congressman from this dis- by Judge Brown. All of this is done trict and a man of great wealth, to get rid of the Pioneer Iron com- represented principally by iron pany, which, if successful, will make lands. At that early day the Pio- void the lease it holds on the Brei- neer people paid $25,000 for the tung lands. This is the sole object of lease, which obliged them to manu- the suit.. facture in Marquette county any The people here look upon the whole ore that might be found on the affair as a private fight between lands. As it now is the ore mined Breitung, who has done nothing toward in this county is for the greater developing the lands in question, and part simply shipped away to be who, if he did, would ship any ore manufactured in Ohio and Pennsyl- found out of the county, and the Pio- vania or elsewhere. Upon this neer Iron company, that will invest a hinges the people's great interest. million dollars here and build up our The lease was for 99 years and was community. We see the state taking up to descend to the successors of with Breitung - and opposing the real the Pioneer Iron Co. but not its and great interests of the people. It assigns. Notwithstanding this looks to us as though the state should lease Mr. Breitung, so long as the either keep out of the fight entirely Pioneer Iron company was inactive or else assist the side that would be under it, could have gone on and most helpful to the people - to the explored and developed these lands. very state itself. Maybe the attorney But he did nothing of the kind. general doesn't know all the facts. What he did do finally was to die. We dislike to think that he would do These lands under lease fell to us an intentional wrong, but the re- Mr. Breitung's son, Edward, in no sult is one and the same. The outcome wise changing the relations of of the suit will be watched with owner and lessee. Last year the feverish interest, for if the Pioneer Pioneer Iron company decided to people lose, it will cost us all dear- explore for iron under the lease ly in the loss of our present pros- and have spent $20,000 in the work pects for the future that were never and have found enough ore to war- brighter. There is a big black cloud rant the belief that a big and in our commercial sky and the state very valuable mine exists on the has aided in placing it there. property. Soon after the Pioneer people started work young Edward Breitung, to whom the lands had come as a bequest from his father, sought through his attorney, Judge C. R. Brown, of Marquette, to en- join them alleging that the lease had become void. Judge Stone re- fused to issue an injunction on the showing made. He told Judge ======================================================================================