A Promised Fortune in Kittitas Mines Turns to Legal War
John R. Wolcott promised to develop eight mining claims on Negro Creek, but when the ore proved worthless, the owners tried to cancel his contract—and he sued to keep his third interest.
The uncertainty of mining deals was illustrated in Judge Langley's court in the case of John R. Wolcott against the National Bank of this city, R. R. Fisher et al., to restrain the bank and Fisher from turning over deeds to a third interest in eight mining claims situated in the Negro Creek district of Kittitas county. The mines are Persinger No. 1, Gray Champion, Iclaho, North Pole No. 1, North Pole No. 2, Admit, Everett and Nabob No. 5, and are owned by Leavenworth parties—Persinger, Ralph Crane, J. A. Stoughton, William E. Lee, John McKenzie and George Kline—who are all defendants in the suit.
On October 13 of last year Wolcott entered into a contract with Persinger and the owners, by which it was agreed that he should assume the management of the properties, act as the general representative of the owners and push the work of development as rapidly as possible. In return, if a certain amount of progress was reached and certain agreements carried out, he was to receive a third interest. Deeds to this effect were drawn up and deposited with the National Bank and R. R. Fisher. After a few months, however, the owners of the mines wished to withdraw the deeds and, as Wolcott claims, sell the properties to other parties. In consequence Wolcott came into court, secured a restraining order and asked to have his rights determined.
The story told by Persinger and his associates is that Wolcott has violated his contract in several material parts, especially in failing to develop the mines. He had agreed to have ready for use by January 1, 1895, a wagon road suitable to freight ore from a point at the present end of the Peshastin Valley wagon road, about one mile below Ingalls Creek, up Negro Creek to a tunnel on the mine North Pole No. 1; also to repair the Peshastin Valley road; to establish a camp at the mines and put them in operation and on a paying basis within a year from the date of the contract. He has not constructed the wagon road or developed the mines in any way, they say, and hence the contract is kept away and they are free from its obligations.
Wolcott himself was the first witness at the trial yesterday and said that when he first took hold of the mines he had met with difficulties which prevented him from complying with the terms of the contract. He sent samples of the ore to the Vulcan Co. of New York and had them analyzed by C. H. Voll of Seattle. The reports from both offices were that it was substantially of no commercial value, contrary to the representations of the owners when the contract was made. Wolcott's testimony was supported by that of Carl Kleinschmidt, Dr. T. M. Young, C. H. Voll and D. P. Ward. The case was not finished when court adjourned and will be continued this morning.
The value of the mines is estimated at from $35,000 to $200,000. The case is attracting a great deal of attention among mining men, a number of whom were in attendance yesterday.
“The reports from both offices were that it was substantially of no commercial value, contrary to the representations of the owners when the contract was made.”
Mining speculation and broken contracts were a staple of the 1890s Northwest economy, and the legal battles often outlasted the mines themselves. Today, the legacy of such deals persists in mineral rights disputes and environmental cleanup across Washington's old mining districts.
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