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About The Sumpter miner. (Sumpter, Or.) 1899-1905 | View Entire Issue (March 30, 1904)
i THE SUMPTER MINER Wednesday, March jo, 1904 BONTA'S BONDS FLOATED, MORTGAGE RECORDED. Five Millions Available Road Into Valley. I-Yldiiy Tli.i Minor stated Hint the liiikur City Ileiald would publish in thu afternoon 1111 authentic iicnunt of till! MUlTI'SMful Hllllltioll Of till! Illllllll ruilioiiil IkiikIh. It iliil so, to tlio ox 'limt of sovernl roliiiiuiH. It snys: "Tim biggest mortgngu iivi." IIIimI in linker canny wiw presented tu Conn (y Itocoidur Hubert Heiny nt tho Court House yonttirdny fur engross 'inniit 011 tilt nltlitltil rocuids. Tin) mortgage Ih given iiy tint linker Clty- 'Oregon Wonder Kolcoliio Itnllwny 'i'oiiiiiiuy, Iiy Km president, Juntos W. 'lioiiln, mill Hh sccictury, V. (I. Drowluy, tu tin; North Amoricnu 'Triiit tiumpmiy, of Now Vork, for llvo iiiilliuu ilolliirH. "TIid dncumniil secures tlio pay ment of IIvh million ilolliirH worth of llrHt mortgage dobnntiiru IioikIh, hcttr lltg data Soptuiiibur 1, liHIil, payable till llftottu years, hearing Interest nt the rate of Mix pur cont pur iiunuin, 'the first interest payment being on ithn llrHt ilHy or March, 1 IH) I. Thu ImxiiIm aro issued in n series, of 4100(1, each, iitnl hnvi) been unik'r wriltim Iiy thu uliiivu umui'il triiMt uouipmiy. "Tim murtgngtt covers iiIho tlio 'railway, which Ih to begin at a iolnt nt or near Hit corporate JIiiiIIh of ' I Ink ni' (Jlty, anil which traverses a i-oiitii oviir thu Upiior lluriit 1(1 vur divide into tin valley of thu John Dny rlviu. All brunches ami spurs, rolling Mtock M'llllilllllOlll Iri and miscellaneous j determined to liuilil a railroad him Included in thu self, thin Investigation having deal , oiiHtrated that such an enterprise mortgage. "Till) mortgage irt signed Iiy tlio illnkor City Oregon Wonder Klcctrlc Itallway ami Improvement coniiauy Iiy luo-ldon. Juntos V, Ilonta, nuil, Secretary Williiun (!. Diowloy, and Iiy thu North Amcilcau Trust com MEETING OF MINE OWNERS AND MANAGERS A strong contingent of prom inent mining men was hole yester day In Hie lutcii'Ht. it Ih understood, of perfecting thu organization of op vrntorH nud mnungers which whs taken up a short time ago iu linker City. This iiigauliitiou is for thu protec tion mid mutual beuollt of thorni en gHged in thu milling industry in t'litNuru Oregon. TIkiho in conference hero yesterday worn I1'. V. Ilrndley.of Sail Fnuclsco, owiiui of thu Hunker Hill nud Sul livan hud llndgur, Arthui lluckbee, of thu Virtue, 1'iaiik llnillie, of thu i'olumblH. Kmll Mulzer, of tho North l'nle, Jnuica Howard, of tho tloloouda, J. a. Wyatt, of tho K. and, Of this valuo IIH Is gold aud sixty K., L. it. liolluiau, of the California, four ceuts silver, aud tbe samples l'eter llaschu, of tbo llascbo-Sage bard waio company aud f Albert (Joiner of thu Midway aud Tabor farctlou. For Construction of a John Day pany, hy lis vice president, Norman iJuud. (ioorge C' Holtoti, iiptienrH as h Uiiuhh to thu transaction. "Thu flliiiK of tliin mortgage Ih the consummation of oi.o of tlio most gl gautic enterprises for iiiiliiHtriiil do volupmcut ever I iimiuui utfd in eastern Ori'gOll- till! COIIstlUCtinll of tlio llontn uleictilc iiiiluiiy from City over tin 11 it r ii t rlvur linker divide! into thu fertile valley of thu .lohu Dny rivur. Tlio rnlhvny win orlgi milly iilmiiiiid toiillonl an nut lot ftotn tlio mines in (irnnt .county owned or controlled Iiy Major llontn and his I'eiiUHylvania associates, hut iih the project progressed towmd cunstimma t Ioii thu original plans were onlnrged to Include th ultinuitu extension of the line Houtli and MuuthcHHt of tlio llluo Mountains, to open up thirty odd million ncruri of fertile laudtt which arc at present without menus of traiiHportiitiou." Then follows a liiittory of the en terprise, In which it is stated that after Major llontn had decided to liny anil develop a minim; property in thu John Day country, ! began tho Investigation of tho coat of transpor tntlon of HiippllfM and niachiiiury from tho (). II. A N. at linker City to tho idIiiom. Kates wore secured from tho Sumpter Valluy inihvny, which i iiiim from linker City to Whitney, n total distance of approximately forty two inllon. These niton were ttbso lutely prohibitive, lie, therefore, would liu a money maker, aside fiom the fact that it would lie nceersHiy to cmry on his own mining operations. Tlint Ih the wny tho Humpter Viil lev rond Iiiih aided in the develop ment of eastern Oicgnu. With nil exception or so thu pnrty left on the delnyed tinln Inst night for linker City, where it Is under stood a further meeting was to bo held todny. GOOD AVERAGE VALUES AT THE VALLEY QUEEN Tom C. (irny, superintendent of the Valley Queen, came iu last night from thu mine and has some very cheerful iuformatlou to impart to those interested iu that property. Thu drift on vein No. 1, originally dtfslguntcd as strlugor No. 1, has proceeded a distance of fifty feet, aud the face is iu ore which averaoes 118.01, according to a late assay. were averages of tbe entire face, In cluding talo, which is showing iu some quantities, and everything else. The width of tbe velu la now five and a half feet. Mr. Cray says that much of this ore has been panned at tbe mine and iu no instance has It failed to -evenl colors. Somu days ago, Mr. Cray says, he opened up tunnel No. 1, aonio dis tance above the maiu working adit, to give a prominent engineer an op portunity to make an export exam ination. Iu tho opinion of this en gineer, veins No. 1, 2 and II, all of which show In the lowor workings, convorge to tbe south at depth and form a large and valuable deposit of ore, which is tbe vlen showing iu tunnel No. 1. The facts regarding the Valley Queen doom tu warrant the couclu- isiuuthnt phenomenal assays ate not to lie expected, or In other words, it is not a specimen mine, which the ' aviinrlutmuil ntlttlttr mail ultlwtaa Imr nut! which will develop substantial ami permanent bodies of ore, averag ing between 18 and 810 iu value to tho ton. These ores arc easy tn re dure and readily converted Into tin marketable commodity. The stock holders iu this company may rest iih- IH"rtM' "'"' "'" "Pt-'rntiotiH at tho prop- -v ""' l'"inK t'lirrleil on In a con- survatlvu nuil systematic manner. GROSS VERSUS NET VALUATION How The Buyer And The Seller of a Mine Arrive at a Fair Figure. Tho process of proper sampling and valuing a mine is one involving an amount of labor ami responsibil ity on tbe part of the engineer, or other person making tho estimate, which is proportional to tbo devel opment of tho mini) and the valine involved. As mini's may be liougbt, though possibly not being olfered iu tho market, there are two sides to tho quest ion of tho valuo of a property tho owner aud tho buyer. Knch side may bo represented by one or several I persons, or each side may bo a cor- ' pnrate company. In any enso tho pnsitiou of either side is et'Soutlally . similar. The owner, or his engineer, blocks out th online, enmplos every accessible portion of It, and all samples are as sayed. Tho result, comprising tlio number of feet or Inches In width of each sample tiiken, Is plotted on a initio map. Kach block of ore, with its several samples, widths and values, is figured separately, aud from this data tho value of tho mine, as represented by the sum of all tbo blocks, is calculated. This is tho gross value, aud if tho work of meas urement, sampling aud assaying baa been carefully done, valuable iufor matlou has been secured, upon which tbe owuor may fix his own ideas of tbo uet valuatiou of his property. There are mauy lustauces where the owuei aud prospector! I ve buyer may, aud do, readily arrive at the gross valuation of a miue actual, prolia ble aud possible but the barmoulz iug of the ideas of uet value Is fteu a difficult aud sometimes an lui possllo tbiug. Tbe owuer uaturally figures as closely aa be cau ou expen esa aud luvestmeut, aud arrivea at figures representing tbe net value uf tbe property from bis point of view, but wblcb figures are greatly at variance with those of tbe possible purchaser, who is not prone to under estimate. The owner may figure a stated amount for mining and re duction aud deduct these from tbo gross assay value, and find a large uet profit in the property. The would-be buyer may or may not be willing to accept tho llguies of the seller as to working costs pre suming that they havt already agreed upou the gios sviilue. Iho buyer ar gues that it Is Improbable that the ore cau be worked closer thuu 00 per cent of its assay value, and it may not yield this much, lie also figures that tbe gettiug of the metal (base or otherwise) to market or mint will cost something. He estimates tbe cost of equipment, if tbe mine is not already equipped, or extensions aud necessary changes iu plant, aud also adds au interest chargu to capital in vested, all of which may bavo been omitted or overlooked by the seller. The buyer llguies for net results, tho heller for all he cau get, and, owing to tli ore conllictlug views, mauy sales, after expensive Investigation aud long continued negotiation, fail aud mo never consummated. A f'lvorito ! argument of the seller is "the mine litis piodiiced so ninny thousands, or millions," as thu ense ttuiy be, when in utility this is a poor argu ment for the seller, as tho mine cau uuver reproduce those millioue, though other millions may yet still lemniii. In thu earlier yearn of mining iu the West invsetors took desperate chances, and Inrgu fortunes were lost iu consequence, though hero aud there were exceptions so uotnhlo as to prove a strong iuceutive tu others to venture, in days of excite ment mining deals are easy of accom plishment; but wbeu tbe days of ad versity come, aa tbey always do where extravagance and unsuitabln methods have prevailed, these must glvo place to economy aud scientific) piactlce, aud men then learn to judgo tho real merit of a mine and faucy prices fall. The Investigations aud valuatiou of mining property has been reduced to a science, iu which tho elemeut of common seuso plays an Important part. Nearly every factor in tbe val uation of a developed initio cau be ar rived at with almost n certainty. Why, tbeu, should there bo a con flict of oplulon as to tho actual value of any mine? If this can bo satis afctorlly adjusted between the two sides to a deal, the prospective valuo may also bo fixed iu a way which should bo satisfactory to both sides. Mining and Scientific Tress. FOOT WALL ENCOUNTERED Ar PUTTS GROUP. Hurt iiusk, who has charge of the development work at Iho I'latts group iu tho iiock Creek district for tho Uelser-Houdryx compauy was iu towu attend tho K. of P. dance, last night. Work is progressing, ho says, aud good headway la being made. Tho crosscut Is uow iu over 100 loot, and has encountered the foot wall. Granite Quary Will Resume. It is reported that N. C. Haskell, of llaker City grauite works, will soon resume operatious at the Haines grauite quarry, aud .will employ a large force of men. Tbe iiaiuea grauite is becoming very popular throughout tbe Pacific northwest, aud baa gained tbe reputation of being equal and in some respects superior, to tbe famous Vermout granite. This la au Industry which promises to become an Important one, and will do much in advertising tbia locality. Hainea Record.