The Stayton mail., November 20, 1908, Image 4

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SMELTER
COIN
■V V -
The following letter is self-explana-
tory, ami furnishes the most satisfact-
ory endorsement |w>ssH>lt< of the values
and the tonnage to be found in our
■nines. The original of this letter is
in our office:
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T H E W IL 8 0 N -G A D S D E N CO.,
t>05 McKay Building.
Portland, Oregon, July 2d, 1908.
The Gold Creek Mining <fc Milling Co.,
Gentlemen:
I am authorized by Dr. George F.
Wilson and the other geutlemen as­
sociated with |me in the enterprise, to
state to you that after careful investi­
gation of the district in which our
mines are located, that we have decid­
ed to erect a smelter of not less than
one hundred tons daily capacity to
commence with, in the neighborhood
of your mines; subject, however, to
certain conditions outlined herein.
After looking over various proper­
ties in Washington Idaho am! Oregon,
in the endeavor to tind a suitable lo
cation for a custom smelter, it seems
to ns that as far as natural features
are concerned, and the possibility of a
very large tonnage being ultimately
developed, that your district stands
pre eminent over any we have investi­
gated.
There are certain difficulties, how­
ever, which must be met and overcome
by you before will commence the act­
ual building of the plant. I f you will
overcome these difficulties we are
ready to contract for the erection of a
plant.
Tne main conditions areas follows:
First— That the wagon road from
Elkhorn, at least as far as the smelter
site [to be selected by us], shall be
completed.
Second— W hile there is not the
slightest doubt in our opinion of the
ability of your mines to produce the
one hundred tons daily output, we de­
sire to commence with (and in fact
with a little more development work
we believe that almost any of the
group can do this well), still we are
not willing to commence actual erect­
ion until you can report to us that
there is in your treasuries a fund suf­
ficient to actually mine this ore and
to deliver it to the smelter.
Third— W e know of no other dis­
trict where it would be possible at
such a small ex|a>nse to deliver the
product of a mine to market, and this
expense to deliver can tie reduced to a
minimum if your company will form
some sort of a joint plan with the
other mining companies in the district
for the erection of whatever plant is
deemed best and most economical for
the delivery of ore to the smelter.
Again, there is sufficient water in
the neighborhood to furnish power to
do the mining for all the mines, and
to operate the smelter, and here again
we suggest that this could be »lone
most economically by all the compa­
nies, or a number thereof, joining in
the erection of a power plant fur the
use of all.
Fourth— We must request that the
actual work of development of the
mines of your district be undertaken
under the advice and suggestions <d
some well-known, competent mining
engineer. We again believe it ailvis-
able for all or several ot your mines to
join in the employment of such a man.
You should have no difficulty what­
soever in raising the few thousrud dol­
lars uecessrry to get this ore out of
your mines and to the smelter.
In
our judgment, auy additional money
you gentlemen or your friends will
spend to bring this about will be no
speculation, but a pure investment
more certain of results in the way of
large divdends than any other possible
way in which you could spend the
money.
We are w illing to contract with
your company for fifty tons per day,
and have no doubt whatsoever of your
ability, long before the smelter can
possibly be finished, to deliver ore of
this amount to us, of a value that will
net you, above all mining and smelt­
ing charges, frym six to ten thousand
dollars, at the very lowest, per month,
from the start.
I t is our purpose to increase the
tonnage capacity of the furnace just
so soon as the increased tonnage is
ready for us. It would be a foolish
man indeed who would not come to
the certain conclusion that the ini-
ense ledges of your district, immense
in width and extent (unequalled by
any we have investigated anywhere)
will, beyond a doubt, develop an en­
ormous tonnage, tu»1 great extent of
which I would not care to risk a figure
on as a limit for your future protit*.
1 will add in closing, only the re­
mark that we nr»- more intt rested even
than yourselves, pci hap*, in the speedy
erection of this plant, for the reasons
I have outlined you in private conver­
sations; therefore, we only await your
assurance that sufficient funds are in
your treasury to insure the (ultilliug
of the above conditions, to commence
the immediate erection of the smelter.
Yours respectfully,
1*AUL 1\ GADSDEN.
There are three or four poiuts in
the above document to which we »!»■
sire to call the investor’s attention
particularly.
First, the letter con­
tains a straightforward, business s t a t e ­
ment of the conditions on which this
smelter company will commence ope­
rations: conditions natural enough
and only reas »table, before any cap­
italists would consid»>r, even, the erec­
tion of a hundred thousand dollar
modern smelting plant. To sum those
conditions up (excepting the hu.tiling
of a wagon road) they may he m liiceil
simply to the statements:
First, That our company must raise
a fund sufficient to pay for actual min
ing and delivery of this amount of
high grade ore per »lay (which the
smelter |>e<>ple have decided they can
count on, us a c< rtainty, from our
miues.)
Hecontl, That in tin: spending of
this money so raise»l, for this purpose,
we should use the utmost economy.
Ami that, therefore, we should com­
bine with the other mines of our dis­
trict in the joint employment ol a
well-known, conqietent mining engi­
neer to »lirccl operations, and should
join also w ith those other mines in ».lie
erection of a power plant for the use
of the entire district, and a tramway
• for delivering the or»'s to the smelter.
Cost of Mining and Delivery
to Our Market.
Every ton of ore from our plant cun
be sent <lown to the smelter by gravity
alone. A t the most liberal, outside es­
timate, the entire cost of mining and
delivering our ore to market [ i. e. i h••
smelter ] cannot possibly exceed $(.00
to |1.25 per ton.
Stock Advanced to Fifteen Cents November 19th
Gold Creek Mining and Milling Co.
J. T. KEARNS, Local Agent.