bullFOREIGN CLAIMS SETTLEMENT COMMISSION OF THE UNITED STATES

WASHINGTON 25 0 C

IN THJll MATTllB 01 THE CLAIM OP

HERSCHEL GLENN BUNN 931 Stanyan Street San Franciscomiddot Galifornia

Under the International Claims Settlement Act of 1949 as amended

ClaimNo SOV-40399

Deci11ion No SOV-2836

bullPo 1amp-llHt-1

Counsel for Claimant

POSTEL amp POSTEL 400 Montgomery Street San Francisco 4 California

FINAL DECISION

The Commission issued its Proposed Decision on this claim on

Septeinb~r 17 1958 a copy of which was duly served upon the

claimant Full consideration having been given to the objections

of the claimant filed within the twenty-day period after such

service which has now expired and general notice of the Proposed

Decision having been given by posting for thirty days it is

ORDERED that such Proposed Decision be and the same is hereby

entered as the Final Decision on this

Washington 25 D C

Orr 8 1958

bullFOREIGN CLAIMS SETTLEMENT COMMISSION

OF THE UNITED STATES

WASHINGTON 25 D C

IN THE MATTER op THE CLAIu or

ClaimNo sov-40399HERSCHEL GLBNN BUNN 931 Stanyan Street San Francisco California Deciaion No sov- io

Under the International Claims Settlement Act of 1949 as amended

o 1amp-711M-1

Counsel for claimant

POSTEL amp POSTEL 400 Montgomery Street San Francisco 4 California

PROPOSED DECISION

This claim for $518193750 under Section 305(a)(2) of the Intershy

national Claims Settlement Act of 1949 a1 amended 11 baaed upon the

following

(1) Miacellaneoua Expenses $ 4713000

(Z) Gold Extracted from the Vernie Mine near Blagovestchensk Siberia 3480750

(3) Iease on the Vernie Mine 510000000

$ s 181937 so

Aa to that part of the claim based upon Miscellaneous EXpeusea of

$471 130 the claimant has not met the burden of proving that such a claila

is valid under international law as required by Section 305(a) of the

aforesaid Act therefore this item ibull hereby denied

Baaed upon the affidavit of the claimant and of c Eo Parker dated

July 2 1937 and March 17 1938 respectively the extraction of gold

from the Vernie Mine pursuant to the alleged lease was begun on or after

January 20 1918 Decree No 342 of the 2nd All-Ruaaian Congress of

Sovietbull of worura and Soldiers Deputies Regarding Iand issued on

bullFOREIGN CLAIMS SETTLEMENT COMMISSION

OF THE UNITED STATES

WASHINGTON 25 D C

IN THE MATTER op THE CLAIu or

ClaimNo sov-40399HERSCHEL GLBNN BUNN 931 Stanyan Street San Francisco California Deciaion No sov- io

Under the International Claims Settlement Act of 1949 as amended

o 1amp-711M-1

Counsel for claimant

POSTEL amp POSTEL 400 Montgomery Street San Francisco 4 California

PROPOSED DECISION

This claim for $518193750 under Section 305(a)(2) of the Intershy

national Claims Settlement Act of 1949 a1 amended 11 baaed upon the

following

(1) Miacellaneoua Expenses $ 4713000

(Z) Gold Extracted from the Vernie Mine near Blagovestchensk Siberia 3480750

(3) Iease on the Vernie Mine 510000000

$ s 181937 so

Aa to that part of the claim based upon Miscellaneous EXpeusea of

$471 130 the claimant has not met the burden of proving that such a claila

is valid under international law as required by Section 305(a) of the

aforesaid Act therefore this item ibull hereby denied

Baaed upon the affidavit of the claimant and of c Eo Parker dated

July 2 1937 and March 17 1938 respectively the extraction of gold

from the Vernie Mine pursuant to the alleged lease was begun on or after

January 20 1918 Decree No 342 of the 2nd All-Ruaaian Congress of

Sovietbull of worura and Soldiers Deputies Regarding Iand issued on

bull - 2 shy

October 26 1917 proridu that All auD-Rrfoa richu orea ell eoal

salt etc u wll u watc ad foreata bariq a Stats illportaue are

trG11ferred for the aclulvbull ue of tbe Statbullbull [ioarce Olleotim ef

DHHU ad orderbull Rbullprcliag BatiODal hOMmy (Octobtir 25 1917 - Octoshy

ber 25 1918) NHoow Pbull 459 Ia view ef dia foregoing 1t 1a apparent

that th1a itbull bullf tU olda -c alM be clea1ecl for tJae gold _ wbfcamp it

u buecl vu extracted from the VelDie H1M aftar it wu cbulltdegiacatH t ta

Soriet CW~t

Aa to tbat it of tbe cla1a bued _ tbe 1 of tbe Veraie IUaa

the clduat alleau the oriaiDal 1 wu Utroyecl - tbe ldM vu

CIOllfiaoated oa Marcb 17 1918 bat he recnatraoted it Wba tbe attoraeJ

for the oJaiuat wu reted to recoaoila ta alleptioa raprdlag the

raoonatructibull of ampbe lbullubull with a bulltat-amp 1a the afficloit of c1 ~arar

of Marcb 17 1938 that the copy thereof vu bull bull a cerreot oopy of the

trlatioD of the odpaal ooatract written 1D the Ruaian laapqe bull ~ bullbull

lie atatad that the aplmatioD t the claluat rqardiDa the recoutnctioll

wu iHooarata for the OOP1 attaolaecl to Jaia affidavit of r11 2 137 vu a

copy of a traulatibull of tbe bulliaiaal leue

lb1a recoaatrutbulld 1 bullhon tllat it wu bulltared 1Dto ea Gotober 20

1917 that G L lradno of Blqnutcbeuk SiMria lu~middotMIMr mul

Bbull G Ban 1-clduat agreed that tb l e 119ball be for the ~ifbull

of the Mid propertr ft matil all lliaeralbull laave bam rmned tberdna

that dM lea bullball wUla aertaiD excaptiou P1 all operatiag ap

ef the aiu tlaat i mll be mtitlacl to asi of all plcl troa

aiu with the halaae of 151 to tlaa luaor mad tbt each partr mll

P1 the gneawat tax applicable to Ilia abarbull of the gold Baaed on alla

tu Chat tbe value of tbe aold was $6000000 vba the ll1ae wu ooashy

fiaoated 1J tile llOriet QnllrllMllt on Barcia 17 1918 th1a ita of tile olda

1a for 851 of that __t or $5100000

1U firat tioa prumted 1a wlwtller the avidaDca nbmittad to Pe

bull - 3 shy

c-ibullbullloD to prne that G Lmiddot Brudao wu tlae fDdividual naer of tba Venie

Mine on October 20 1917 baa fulfilled that purpoae be clduat baa nbshy

aitted the follow1Dg docaeata uane of whicb are primry evideue for the

purpoae of prodng ncb naerahip

(1) botocopy of a purported letter dated Marcb 29~ 1917 In G Lbull Bruclno to bU brotbar George Cornet reshygardina varLoaa gold depodtbull but ao middotreferU waa -bull tbarein to ay c1flci property er afU (be head of thfa letter refers to sr~st-SjwkOold shyM1Dina CGlagtG7bull City of Blagcwuht~k fel bull 718

(2) botocopy of bull parported oerUflcatioll damptecl April 4 1918 that 1 Parter ad ca luau bullbull been wrking tba Vendbull (Veray) middotMiDa whfcb wu fomerly owed by srec1ne Cl-4giallty Go~d Proctucing Oollpally

(3) Affidarit of Octohr 25 1937 by Ceorge OorMt wluireiD he aada tba general atat--t that hi8 brotbei- (G L Bradno) vu the OWMr of oertain ldaiD1 propertlu located near BlagovtcUnak -

(4) Photocopy of a article la the Saa Jranciaco BUlletia of April 23 1917 ill bullicb the introduC1ory rurka refer to a letter received by z L~ corut middotfroiia h1a brotlulr (BrUdno) ill lbl8bullia regar~ bull bull tlaeir iiinshying pr~ty bullbull ~n - be eiatiie letter la quotecl 1n middotthu article ad cootam nveral value referC to IWia9 -bull bull worth a liillioll dollarbull bull bull bull middotwt Uitlulr tba a of these ainU nor their locatiou are uoaed and

(5) Affidftit of Marcb 17 1938 by c 1 Parker (ou of clduatbull uaociatea ill the operatioa of Vendbull Hiu) 11hich containa the atatllient that be leue 1iu aacuted by the owner G L BrUdDD a citizeo of Ru9bullia bullbull bull

Pap 18 of~ claimantbull aforaid affidavit of _ Ju~y 2 1937 containa

a atatement regarding the Vernie Mine that t1amp1bull 111ne u baa bea heretoshy

fore illdicated la eul1 ou of a mmber of 111nebull 1n thia vicinity beloaging

to Hr Brudno who wu thbull owner of the sredne Selbulljenaky Gold Producing ~

co hat thibull c owaed the Vernie M1Da prior to itbull confiac~tion by

tbe Swiat Gavermlnt 1a confirmed by tba certification ducribed in itbull (2)

of the paragraph 1-diately preceding ad alao by the l_etterhead of the

C01111U11ication of March 29 1917 frOll G Lo Brudno to Qeor~e Ocmlet [itbull (l)

in the paragrapll 1-ediatbulll1 precediui which referbull to sredne Sbulllbulljenaky

bull - 4 shy

Gold ProduciDg eo CODllicleration muat also be given to the fact tbat the

aforeaaid article in the san rraaciaco Bulletin IJtbull (4) of the paragraph

1-diately preced1ai indicatea this 1liD1ag property wu owaecl by GLBr11dao

ad Qeorge Comet he copy of the lbull aulllaitted to tbe a-11on bullb9w

it wu signed by G Le Bruclno in a inclividaal capacity however the foreshy

going factbull raise a doubt that thu JlLDe wu owned bulllely and individually

by hia It b dgaificat that 1IO prlaary evicleace hu been offered to prne

ownerahip of tbe Vemie Kine by G t Bruclao even though the claia la for a

aubatatial aouat

Ia the abbulleace of the original leue it la difficult te cletermlae the

actual tema of ncb a contract upecially u to length of time fnYolved

and rupeetive ppoundticipatioa of each party in the gold or profitbull therefroa

ad of the utmoat 1aportace b its true date in view of the fact that the

Mine wu cClllfbcated on October 26 1917 wbiola wu only dz dqa aubbullbullfPMlllt

to thbull date of tile leue lhe con of the alleged leue attached to the

claiuDtbull affldavit of July 2 1937 bullhon that the claiuut wu the bullbullle

leaaee but it albullo coataine a bulligaificaat bulltatement that the prty of the

first part (leaeor) qreea to famiah board ad lodging to the bullecoacl party

(leM) and two uaociatu he aforebullaicl affidavit of c E Parbr atatea

that Bunn and UMciatebull were to receive living upu mad eiptz five

perceut (85) of the proceeds in addition thereto ad that bull bullbull the valae

of the Gold on Hid propei-tiu at the time it vu taken from lu by the

Soviet GoveraMnt was the bullbullof Six llillioa Dollars bullbull bull (UaderaceriDg

applied) Blackbull Iaw Dictioaary clefirau the word uaociate11 u a partshy

ner in interut and the bullaid affidavit by Parker corroboratu that relabull

tioaahip llle facts are aufficient to poH the quebulltion u to 111aether the

claillallt wu the only lebullHbullbull

It mat a1M be noted that the alleged leue wu dated October 20

1917 which wu during a most uacertain and hectic political period in

Ruaaia and only bullix daybull prior to the CODfboation of the Vanlie lUDe by

bull - 5 shy

the Soviet Goverment Aa the owner of th18 Hine wu a RuHian aational

the eucution of the lbull at thattiae could have been a transfer to the

cldmant for the pulpOff of invoking American diplomatic protection iR the

went of a conf18cation of the property by the Soviet GovermMmt In aucll

a event this claim 111Duld aot come within the mbit of Section 305 (a) (2)

of the Intematiooal Claima Settl_t Act of 1949 u mended

the alleged valuation of $6000000 of the leaae ia baaed upon the

follovLng

(1) 1be affidavit of Karch 17 1938 by c 1 Paker contains a statement bull bull he nrv-ed the propertiu MDtioned inHid contract and that a fair Utillate of the Value Of the Cold OD aampid properties at the time it wu taken from lua by tile Soviet OoVeJllilellt WU the aua of Six Milshylion Dollarbull ($6000000) u s aurrency

(2) be affidavit by George Cornet elated October 2S 1937 coataiaa a atatmeat that thia latter ainshying property wu accorlliDg to the inforamptioll rendered by engheering expertbull and giU to the affiant by affianta add brotMr of a value in exceaa of $6000000 and wu the richest llina in thbull vicinity

(3) 1be claimantbull affidavit of July 2 1937 contaiaa a statement that the gold utracted froa a cut 500 feet in length 40 ft wide and 4 fut in depth hampd a valU of $3480750 and that these ame valuaa extended over an ampraa 3 Idlea long 600 feet wide aad 4 feet 1a depth for a net (after deducting coats of extraction) ofapproxilliataly $6000000 but thia affidavit alao contains a atat~t tbat the Aluka Packerbull uaociatfon bad conaidered purcbaaing the Siberian lfialng Proparshytiea for $1000QOO which Propertiea apparatly included the Vernie Mina and veral othera and

(4) he letter of Kay 19 1958 from the claillantbull at shytorney explaina tbat thia net value of $6000000 18 baaed upon the followLag

(a) Vernia Mine 18 3 ailbullbull long 600 feet wide and pay dirt of 4 feet which containa 1630222 cubic yards of pay dirt

(b) Bach ouhic yard of pay dirt contains gold with a value of $15 or a total value of $24453 330 and

(c) Qrosa value of gold of $24453330 lua coats of extraction of $18453330 (7St of $24453~330) leavinamp a ut of $6000000

bull - 6 shy

As to the evicleDce nlmitted in npport of tha alleged value of tha

luae tba Hid affidavit of c E arbr ia COllCbed ia very geural term

with ao appareat buia for la1a conclaaioll ltae affidavit by Geer~ eoraec

regardha tha value of tbia le ia uterially clecruaed ia valve whea it

ia realiae4 that hie iafcmuticlll of a general nanre ia bemaay twin reshy

_ frbull tlle aource It 1a lllNt difficult if aot illlpNailtle to recoashy

cile the clalMd net value of tbia leue of ~009000 1eh ill appl1c0le

to the Vernie Kine only witll the apparent offer of $1000000 by the Aluka

Packerbull Uaociatioll for that Kine and HVUampl others MlltioAed in cbt-cbulla

affidarit of July 2 1937 and with the alleged value of u000000 for the

varfou ll1nea placed thereon by c t BndDo in 1da letter of Mllrcb 10 1917

u incorporated 1a the article ia the Ba Jraac1aco Balletia of April 23

1917

lhe alleged net value of $6000000 of the 1 aa ahom in the

claiullt 1a affidavit of July 2 1937 ia apparently baaed on the fact tbat

u the PampJ dirt extracted from a 011t 500 feet long 40 feet wide and

4 feet deep had a gold value of $34807 SO the valuu could be proshy

jected or extmded over the entire Mine witb a length of 3 ~1u widtb

of 600 feet aid depth of 4 f t such a projeotioo or extenafon 1110Uld

reault ia a net fipre of $4126131 md oot $6000000 u claimed be

aforeaaid attoneybull letter of Hay 19 1958 ahowa that the entire Venie

Mine contained 163022 cubic yarda of pay dirt with eacb cabfA yard

containiag gold with a value of $15 ao that the groH value of $24453330

lua coats of extraction of $18453330 would result ia a nat of $6000000

Baaed tlpoll the Mine dSSfou of 3 miles 600 feet and 4 feet there voald

have been 1408000 cubic yarda rather than the figure of 1630222 u

ahCNll in the attornaybull letter lhe clalaaDtbull affidavit and the attorshy

nabull letter both show a gold value of $15 per cubic yard but the pampJ

dirt of 80000 cubic feet or 298888 aubic yarda extracted froa the

aforuaid cut had an alleged gold coatent of $34807 bull 50 which would be

bull - 7 shy

eqoivalent to $1164 per cubic yard Altbeugla the clafMd value of tJai8

itbull 1e a vcy nbatantial uut no priuzy evideoce bu baa iittecl

to corroborate the allepd value of $6000000 for the leue of the Veraie

Mine bull

U the claiaant baa failed to aullldt pernuivbull evidence ill npport

ef tJai8 itbull of the clda baaed upon tbe leaae of the Vernibull Mille it t

Other el_ta beariag upon the validity of tU clda laava bullt bMD

conaiderecl

Dated at Waahiagton D c

rca te1 CCHasstm