Lucky Strike Mine Scandal Exposed: Berry Ruling Upheld, Miner’s Bonds Valid

August 18, 1927, marked a turning point in the Lucky Strike Mine scandal, as Judge Berry’s decision to uphold the validity of bonds issued by the mining corporation was sustained by the Supreme Court. The case, which had been ongoing for a year, centered around the Lucky Strike Mining Company of Zap, North Dakota, and its collateral debt of $31,400. The corporation had issued three classes of bonds, with two classes totaling $120,000 and $50,000, which had been filed by 40 miners. According to Judge Berry’s ruling, these bonds had priority over the third set of bonds, also worth $31,400, which had been issued as collateral security for preexisting indebtedness to the Marshall Malaise Lumber company and other creditors. The miners had exchanged their notes for these bonds, but Judge Berry had deemed them invalid under state constitutional law. However, the Supreme Court’s decision on Wednesday reaffirmed Judge Berry’s ruling, leaving the Lucky Strike Mine’s financial woes unresolved. The mine, which had begun operations in 1919, was organized by a group of local men from Mandan, North Dakota.