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"Mr. Steinfeld Is In Sole Control:
The Celebrated Case of Louis Zeckendorf vs. Albert Steinfeld
and the Silver Bell Copper Company," by Bettina
Lyons, appears with the expressed written permission of
the Arizona
Historical Society.
The Journal of Arizona History, volume
41, number 2, Summer 2000 p. 149-180
Published by the Arizona Historical Society,
Bruce J. Dinges, Editor-in-Chief
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1. Albert Steinfeld, "Memoirs," manuscript (1931); and Albert Steinfeld,
"Early Recollections of My Life," manuscript (1930), copies in author's
files. Steinfeld claimed that Louis Zeckendorf founded the Tucson branch of
A. & L. Zeckendorf, when he first visited the Old Pueblo in 1867. He made
a second visit the following year. According to the A. & L. Zeckendorf
& Co. advertisement in the Arizona Quarterly Illustrated, July
1880; Tucson City Directory, 1881; Weekly Arizona Citizen (Tucson),
April 23, 1882; and Biographical Record of Arizona (n.p.: McFarland
Publishing Company, 1896), p. 530, the Tucson store was founded in 1866.
2. Steinfeld, "Early Recollections."
3. Arizona Weekly Star (Tucson), April 11, 1878.
4. W. L. Johnson engineering report for the Silver Bell Copper Company, May
17, 1902, in III Citizen Cases #3483, MS 183, Arizona Historical Society (AHS),
Tucson. By the time Julia Zeckendorf acquired the Old Boot, it had been relocated
under the name of the Mammoth Copper Company. As far as the family was concerned,
the mine would always be referred to as the Old Boot.
5. Mary Nielsen, Administratrix of the Estate of Carl S. Nielsen, Deceased
vs. Albert Steinfeld [Steinfeld v. Nielsen, 15 Ariz., April 1914, p. 4281,
Civil Case #1088, University of Arizona Law Library.
6. Albert Steinfeld to Louis Zeckendorf; January 27, 1899, III Citizen Cases
#3483. Unless otherwise noted, all correspondence is in this collection.
7. Steinfeld to Zeckendorf, January 27, June 5, 1899; Nielsen Mining &
Smelting Company Stock Certificates, May 8, 1889, ibid.
8. Steinfeld to Zeckendorf, August 7, 75, 1899.
9. J. N. Curtis testimony, in Reporter's Transcript, May 1905, Albert
Steinfeld et al. v. Louis Zeckendorf, III Citizen Cases #3483. Curtis
testified that Volkert and Francis worked for the Globe Minerals Exploration
Company. They filed their jumper claims on January 1, 1900.
10. Steinfeld to Zeckendorf, August 31, October 5, 1899.
11. Ibid., October 20, 1899.
12. Ibid., November 13, 1899.
13. Ibid., December 21, 1899.
14. Zeckendorf to Steinfeld, December 22, 1899.
15. Albert Steinfeld testimony, in Reporter's Transcript, Steinfeld et
al. v. Zeckendorf, p. 40; Steinfeld to Zeckendorf, March 26, 1900.
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16. District Court of the First Judicial District, Territory
of Arizona, Pima County, "Findings of Fact" (1908), pp. 10, 13-14.
Louis Zeckendorf and Albert Steinfeld, "Modifications and Additions to
Partnership Agreement," August 7, 1899; Margaret Francis and Julius Volkert
to Mammoth Copper Company Deed, recorded May 17, 1900, ibid.
17. Zeckendorf to Steinfeld, June 2, 1900.
18. Steinfeld to Zeckendorf, June 10, 1900; Zeckendorf to Steinfeld, August
1, 1900.
19. Steinfeld testimony, Reporter's Transcript, Steinfeld et al. v. Zeckendorf,
pp. 7, 239; Carl S. Nielsen, Mary Nielsen, and L. B. Lewis to Albert Steinfeld
Deed, June 29, 1900; Certificate No. 2, in Nielsen Mining and Smelting Company
stock assignment book, all in III Citizen Cases #3483.
20. Irene Pizzini oral reminiscence with the author. Albert Steinfeld to
Selim Franklin, October 4, 1900, Selim M. Franklin Collection, Special Collections,
University of Arizona Library (SC, UAL), Tucson. The investors' meeting was
held on October 20, 1900.
21. Steinfeld testimony, Reporter's Transcript, Steinfeld et al. v. Zeckendorf,
p. 205. In fact, Zeckendorf insisted that Albert had said nothing to him about
purchasing the mines and drat he first discovered that Albert had acquired
the English claims and the jumper claims, through the Mammoth Copper Company,
after the sale of the Silver Bell property. Zeckendorf testimony, ibid., p.
104.
22. Curtis testimony, ibid., p. 149.
23. Zeckendorf testimony, ibid., pp. 9-10. The 1902 Tucson Directory lists
Louis Zeckendorf residing at 2 Convent Street.
24. Zeckendorf testimony, Reporter's Transcript, Steinfeld et al. v. Zeckendorf,
pp. 9-10, 129.
25. Curtis testimony, ibid., p. 151; Steinfeld testimony, ibid., p. 182.
26. Steinfeld's July 15, 7901, proposition is in "Findings of Fact,"
pp. 19-23; Selim Franklin testimony. Reporter's Transcript, Steinfeld et
al. v. Zeckendorf, p. 260. Franklin had expected Albert to notify Louis
of the upcoming meeting and to send his uncle a copy of the proposition so
that Louis would have an opportunity to review it before he voted the L. Zeckendorf
& Company stock. Franklin testimony, ibid., p. 260.
27. Steinfeld to Zeckendorf, August 2, 1901, February 21, 1902.
28. Ibid., November 22, 1902. The Silver Bell Copper Company did not hold
a stockholders' meeting in 1902.
29. "Findings of Fact," p. 27; Steinfeld testimony, Reporter's
Transcript, Steinfeld et al. v. Zeckendorf, pp. 185-86. Mining engineer
E. B. Gage and William E Staunton organized the Imperial Copper Company, out
of the Development Company of America, for the purpose of buying the Silver
Bell mines. Gage and Frank M. Murphy formed the Development Company in 1900
and, in October, visited Staunton, superintendent of the Tombstone Mining
Company. Murphy organized the Tombstone Consolidated Mine Company to pump
water out of the Tombstone mines, reviving their operation from 1901-1911.
William F. Staunton deposition, ibid., p. 204; James E. Sherman and Barbara
Sherman, Ghost Towns of Arizona (Norman: University of Oklahoma Press,
1969), p. 139; Odie B. Faulk, Tombstone (New York: Oxford University
Press, 1972), pp. 180-81.
30. "Findings of Fact," pp. 33-35; 100 Pacific Reporter
789.
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31. Steinfeld to Zeckendorf, May 20, 1903; Zeckendorf to Steinfeld, May 21,
1903.
32. Steinfeld to Zeckendorf, May 22, 1903.
33. Zeckendorf to Steinfeld, May 28, 1903.
34. Steinfeld to Zeckendorf, June 4, 1903.
35. Zeckendorf to Steinfeld, June 18, 7 903. Louis reminded Albert that he
had offered to have L. Zeckendorf & Company refund the $2,000 Steinfeld
had paid for the 300 shares of Nielsen stock, but that Albert had said not
to mind, the concern owes our firm enough money.
36. Steinfeld to Zeckendorf, June 30, 1903.
37. Zeckendorf testimony, Reporter's Transcript, Steinfeld et al. v. Zeckendorf,
pp. 81-83.
38. Steinfeld testimony, ibid., p. 188.
39. Ibid., pp. 189-90. Nothing was resolved in San Francisco. The two proud
men were determined that theirs' was the correct position and neither would
acquiesce to the other. Albert explained that he fully intended to make a
cash distribution to the stockholders from the second note and that all he
wanted was to be protected regarding his personal guarantees. He demanded
that Zeckendorf immediately dismiss the attachment suit. Louis agreed that
the cash and notes should remain in the Bank of California, but not in Steinfeld's
name. When they were withdrawn, they should be placed to the credit of the
treasurer of the Silver Bell Copper Company and held for the company. Steinfeld,
on the other hand, refused to replace Shelton with Zeckendorf on the Silver
Bell Copper Company board of directors.
40. Louis Zeckendorf, Plaintiff vs. Albert Steinfeld, Bank of California,
a corporation, Silver Bell Copper Company, a corporation, J. N. Curtis &
R. K. Shelton, Defendants, December 8, 1903, Superior Court, City and
County of San Francisco. Tucson Citizen, December 9, 1903.
41. Steinfeld to Zeckendorf, December 12, 1903; Louis Zeckendorf vs. Albert
Steinfeld for a dissolution of the company partnership firm of L. Zeckendorf
& Co. and the liquidation of the affairs thereof, February 6, 1904,
Pima County District Court Case #3496, Book 8, p. 167. Albert demanded that
Zeckendorf dismiss the injunction suit, promising that he would "comply
fully and faithfully with the terms of the contract existing between me and
the Silver Bell Copper Company, bearing the 20th day of May 7903." Steinfeld
to Zeckendorf, December 20, 1903; Steinfeld testimony, Reporter's Transcript,
Steinfeld et al. v. Zeckendorf, p. 130.
42. Curtis testimony, Reporter's Transcript, Steinfeld et al. v. Zeckendorf,
pp. 171, 174. Steinfeld claimed that the English mines were more valuable
than the Old Boot and, therefore, he was being extremely fair in asking for
only one-half the proceeds from the sale, less the real estate commission.
Curtis, an experienced mining man, agreed. On December 17, 1912, the Arizona
Supreme Court ruled that Steinfeld completely controlled Curtis and Shelton's
votes.
43. Zeckendorf vs. Steinfeld, Case #3496, Book 8, p. 167; Tucson Post,
February 13, 1904.
44. Steinfeld to Zeckendorf, May 18, 1904, Francis Hereford Papers, SC, UAL.
Tucson Citizen, May 28, 1904.
45. Arizona Daily Star, March 17, 1905; March 13, 1924.
46. Tucson Citizen, May 16, 1905; Arizona Daily Star, May 17, 1905.
First Judicial District, Pima County, Territory of Arizona, Case #3483, Book
8, pp. 154-67, microfilm, Pima County Courthouse, Tucson; U.S. Supreme Court,
222-225 (1912), 56 Law ED 1160, UA Law Library; John H. Campbell's opinion
in Zeckendorf vs. Steinfeld and the Silver Bell Copper Company, September
15, 1905, in Case #3483.
47. Tucson Citizen, March 16, 1906
48. U.S. Supreme Court, 222-225 (1912); 10 Ariz. 221, 86 Pac. 7; Arizona
Supreme Court, judgment in the Case of Zeckendorf vs. Steinfeld, March 23,
1907, all in UA Law Library. Ironically, the federal court also found that
"Steinfeld could have purchased [the English group of mines] for his
own benefit, even if the [Silver Bell] corporation had funds sufficient to
make the purchase." Selim Franklin, therefore, was wrong to have insisted
that Steinfeld must offer the English claims to the Silver Bell Company. Nevertheless,
Steinfeld had faith in his attorney and followed his advice.
49. Louis Zeckendorf, appellant vs. Albert Steinfeld, J. N. Curtis, R.
K. Shelton, et al. and Albert Steinfeld et al., appellants vs. Louis Zeckendorf,
U.S. Supreme Court 222-225 (1912), 56 Law ED 1160 and 10 Ariz. 221,
86 Pac. 7. Arizona Supreme Court, judgment, March 23, 1907.
50. Tucson Citizen, November 4, 1916.
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