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Correspondence, Levi Syphus to Sadie B. Clayton




Creator: Syphus, Levi




This folder is from the "Correspondence" file of the Sadie and Hampton George Papers (MS-00434)

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man000370. Sadie and Hampton George Papers, 1874-1944. MS-00434. Special Collections and Archives, University Libraries, University of Nevada, Las Vegas. Las Vegas, Nevada.


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Overton,, Nevada November 24, 1939 Mrs Saaie B. Clatyon, Santa Ana, Cal Dr. Wherry E. Neel, Los.Angeles, Cal. Members of Directors of Executive Committee of the Virgin River Salt Company; Dear Fellow Directors: The past ten years having been hectic and painful ones for me and, it is possible that I may be at error in some of these statements hereinafter made, if so kindly excuse the'.same. fry reasons for this letter are two-fold,., first- I have no desire to go to jail upon the charge of conspiring to have the Virgin River Salt Co. defraud the government of income tax, there­for like the rest of you, I am for the government being satisfied in the matter before a distributi on of the company *s . funds, and second- because the majority of stockholders in this locality are desirous of knowing the status of the company’s affairs and when they may expect a distribution of the company’s funds. Said funds were of course deposited in the bank by the comp­any ’s treasurer subject to her order'duly approved by the Execu­tive Committee, presumably under a savings account. In. which event there would be some .$2000.00 of accrued interest or thereabouts. It is because of the charges brought by the government, aga­inst Director Bonelli, (which I sincerely hope will he proven to be false) that I 'am.writing at some length about the company’s, affairs. Since it seems there might be some complications for the company by the government injecting itself into its affairs, since if I remember correctly the, stock of our company formerly belonged to George Bonelli now appears.- in. the company’s books as the ;ro- nertv or- stock of g?j111 am G. Bonelli., he being the present record owner of- It, therefor if.- 11 if true as alleged by the newspapers that the government Is levying upon all of Director Bonelli’s pro­perty interests, then it is only a matter of time until it will tie up his salt stock thereby injecting itself into the company’s affairs, which should not however, prevent the company from pro­ceeding with its business in an orderly manner. While as stated. I sincerely'hone Director Bonelli will be ible to fully establish his innocence seems to -me the situa­tion is such that, though innocent, his case is of such character as to consume practically all of his time for perhaps a good while in the future, therefore X am suggesting that you as members of the Executive Committee consider carefully as to whether or not it Is adviseable to•employ, competent attornies to care for of our company’s~affairs and wind up its business at date possible. 01 course, first consulting Director respect to the matter; (I mean attornies determining matters.) -? the legal end the earliest Bonelli with Income ta.x > It Is Sp opinion that our company Is not owing Income tax unless rrehaps upon the.$30,000 or thereabouts which it; received r0r work don® bv and imorovements made upon its property by the two concerns' who. operated upon'it-as leasees. The government might hold that part of the funds to be -a company net income, which however under one legal aspect of bur case should be con­strued as merelv the return of money ex ended by the company,that is to say the exnendi.tu.res of the leasees should be legally' held to by comnany expend it ;res . X recall that at the first stockholders meeting here, attend­ed bv Director Bonel"* 1, it was represented that. the government, would not recognize- the salt itself as having any value or allow anvthing whatever, for it. hut .’would pay for the patent rights, work done and improvements, made, giving .valuations potentially­lowed upon those various items. I have never learned whether or. not that »as the basis of final settlement with:the government or whether the settlement ias finally made upon the basis of 'fid,000 for the companyf s entire oro;ertTr as a whole. In any event however it•seems probable the Reclamation Berv'c° has a record of those various nr oner tv iter 'valuations', and is a. permenant record of. same belonging to the government and available to it. It seems to me that no one but a competent attorney is Qualified to handle that phase of the matter for the. company,. Therefore, it seems to . me that if 'Director Bonellif s situation is such that he cannot proceed with the matter without further delay it might be the best plan to em­ploy other council and bring the matter to & close within the earli­est time reasonably possible, you;.; will understand ? that I . am making suggestions by-fway de­veloping- the situation and as an aid towards determining . the best course to per sue. But it does seem to. me unless Director Bonell.x is in a position' to, and will proceed to close, the matter at the earliest possible date, definite action should be taken for that purpose though it might necessitate the assembl. fng of a full ; card under proper notice duly given to take necessary, action for closing the case. With kindest personal regards to each of you and hoping or Bonelli is only the' victim' op a conspiracy, and desiring informed of your conclusions In the matter, I remain, Direct-to be Very truly yours, COPY TO: Dr. W. b . Neel John M. Bunker CO tO a die B. Clayton 15 North Main Street Santa Anaa California