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.