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About The Sumpter miner. (Sumpter, Or.) 1899-1905 | View Entire Issue (April 6, 1904)
FOR THE RED BOY CO.
Alexander Prussing, of Chicago, And E. J.
Godfrey Submit Most Feasible
Sonio days since circulars wero re
ceived hero hy Rod liny stockholders
from Ci. II. Sherwood et ul, of Phila
delphia, suggostlng thnt they cuutrih
uto vuluiitnrlly mi assessment of ouu
cent 11 share on tho Block hold, to
raise it fund or 8:10,000 with which
to Unlit in tliu courts tho sale of tho
property. These people hold smoo
thing ovor 100,000 shares of stock,
bought nt a hiRh price from the Hen
sou holditiKH. through M. A. Butler.
Interested parties hero say the plnn
is ill conceived, that lusteiid of
spending this sum pf money in use
less If kiiI expense, if two cents a
share jhnuld be paid, enough money
would he raised to pay oif the In
debted nosh of the company.
Today J. A. Howard received from
Alexander PrussliiK, Chicago, what
seems to be a far better plan for
solving this kuotty, unpleasant prob
lem. He says in part:
"The court has ordered that no
bids uuder 880,000 will be consid
ered. It is estimated that 9100,000
will be required for development.
It 1h difficult, of course, to estimate
the amount of mouoy which will bo
contributed by the stockholders, but
after consultation with a number of
those most heavily Interested I have
arrived at the pluu which I believe to
be the most satisfactory to all con
cerned. I am forming a syudicato
that will rait-e sufficient money to
enable us to purchase the property
and provide the iieoebsary develop
incut fund to once worn place the
Red Boy in the dividend paying
dims. If the sum of money paid in
by the sulmorlhers is more than tho
amount needed, tho excess will be re
turned to them. When this syndi
cate secures posbcssloli of tlo prop
erty, a new company will be formed
in which each member of the syudi
cato will receive stock In the exact
ratio of his individual subscription
to the total amount of the syudicato
fuud. In other words, a biibscriber
will be represented in the new com
pany dollar for dollar in the same
proportiou as every other ouo, uo
matter what the amount subscribed,
tbe object being to give the smallest
stockholder of the old compauy tbe
SUIY1PTER. OREGON, APRIL ft, 190.1,
samo opportunity of protecting his
InteroHt as will bo had by the largsot.
"Should tho syudicato succeed in
buying in thlrt splendid property ut a
prlco which loaves 8100,000 for de
velopment, It will readily bo seen
that treasury stock iu tho now com
pany will easily lirliiK from two to
three times ha much per share as
was tho cost of tho stock to tbe mem
bers of this syudicato and that In
ventors will gladly purchase It at ad
vanced prices as soon as the niiuo Is
Accompanying this proposition is
a circular letter from K. ,1. (iodfrey,
dated at Chicago, March UO, which
reads as follews:
"As tho largest individual holder
(having 800,000 of tho 'J. '.00,000
shares Issued) of stock iu the com
pany and bavins been ideutilled with
tbe Red Boy mine since its earliest
davs, when as h prospect I took
uhargo of tho property, I wish to
makn a statement which will fully
i explain tho reason for tho (-ending of
the enolosol lotter by Mr. Prussiiig.
"When Mr. Tabor aud I llrst went
Into partnership the mine was In its
infancy aud as its mining malinger, 1
devolopnd it Into tho best paying
proporty of tho section, producing
from it nearly 8800,000 in tho
years boforo Its consolidation with
tho Concord propel ty.
"Dining this time (hero was ex
pended in development, the purchase
of timber lands, water rights, water
power, tho miiguitlceutly equipped
hoisting and 'reduction plants the
sum of 8500,000.
"Tho merging of tho Ited Doy, a
producing mine, with tho Concord
group of uon pro hieing claims under
J tho thou existing conditions was the
logical outcome of a plan to Increase
Ills size and productivity, but tho
.cupidity of some of those who joined
in the consolidation was primarily
the cause of tbe present state of
"Tbe corporation iu which you aro
a stockholder undertook what would
have been a successful venture,
namely tbe raising of money foi th
sinking of tbe nialu shaft and the
development of tbe water power, if all
the interested parties had supported
the management. This was not done I
and In consequence of the flotation :
of large blocks of stock by holders .
who had agreed to retain it, rales of
treasury stook wero insufficient to
carry out the plans which were to'
make the consolidated properties the.
greatest mine mi the coast. j
"At the time of tbe consolidation
tho Red Hoy initio had reached a
point iu Its development where the
or reserves could not bn kept up to
mill requirements without going
through uud below the broken zone i
cut iu thn lower level. It was there-,
fore Imperative to spend .1 large sum
for the sinking of tho main shaft, i
Mr. Tabor and I had spent our money '
iu necessary Improvements, but could
lint meet this extraordinary expense. '
Then the consolidation was elfected,
tho raising of money by sales of
treasury stock, although seemingly
assiiied. failed for tho reason above
"Water power and other develop
ments wore begun but when returns
from treasury stock sales diminished
it became apparent that (hero was no
use In continuing operations.
"Every dollar of the Indebtedness
was expended in aud about tho mlim
I and water power.
"Tho conditions now aro such 'hat
tho proper outlay of 8100,000 Iu
tho mine should iiiako it again u
strong producer aud it source of pride
aud satisfaction to its owners, Tim
water rights iilnue are u valuable
asset, worth more than the total in
vestment needed to redeem the mi ne.
"I have put years of toll aud much
money Int.? thla property and hope
to he ideutilled with It in thn future.
I feel that there cau bo but one out
come Iu further exploitation of this
wonderful mine aud nopo that you
will join mn to the end that there
mar be a successful issue,
"There is uo desire to deprive
any ouo of rights or property aud tho
Investment made now to protect your.
Interest will Increase it proportion
ately, because tho valuation will lie
based on a lov figure.
"Outside investors stand ready to
furnish tho money needed to enable
us to equal any bid which may bn ,
made. These outside luvestois mo
to receive tho same coiisideiatiou im
is given stockholders.
"Vou will have tu mid including
the 'J5th day of April, TOO 1. to send
your remittance In Alexander Pius
slug, trustee, IIIH Washington street.
Do not delay, for after that date tho
subscriptions of uon
will be pro rated."
WiH Open Assay Office.
C. P. Rabt, who formerly ran an
assay office iu Sumpter, was up from
Baker City today between train. lie
says be Is going to establish an assay
office at some point In the district, but
has not decided yet where it will be.
DEAL ON FOR THE
SALE OF AURORA
W. II. Mead, superintendent of tho
(lladstnue. returned thla morning!
from Spokane, whore bn has spent
the time since December, .when tho
property closed down on account of
Mr. Meadwill go out to the (ireen
horns in a day or so and get flilngt.
In shape fur resuming work when tho
snow leaves sufficiently to permit.
Kxtensive devoopmeut Is planned for
the coining season.
Mr. Mead says there Is u deal mi
for the Aurora, owned by the sanu
people. A Heattle llrm has piactlcnlly
closed negotiations fur Its purchase.
The deed Is now in esciow, and hi
thinks tho transaction will doubt Iobh
be closed, lie did not mention tho
consideration or the terms of tho
Tlio Little Cracker Mining com
pany held Hh annual stockholders
meeting thla morning at tho com
pany's office iu fiuinpter, and elected
the following officers and directors,
for tho ensuing year:
I'resdlent, A. K. McDonald, of
Diilulh; vice president, II. llut.e,
8r., of Humptor; secretaiy and treas
urer, Dun L. Willard, of Kumpter.
Tho directorate unmpritc the above
officers and H. It. Hill, of Dulutli,
and Andrew down, of Duluth.
There was represented llfiH.riOO
shares of the capital stock at t tit
meeting. II Is stated Unit work will
bo iobiiiiiwI al the property as soon
as the siinw has nittlcleiilly gone to
V. M. McCalley, former mill,
wrighl at the North Pole, went tu
I'oitlnud today iu (he Interest of
a mining device which he lias Invent
ed. Mr, McCalley has made a lough
model of the apparatus, but intend
having a more pel feet model made
In Purtalud to forwaul lo the depart
ment fnr tho purpose of securing it
He will not make kuowu the iinturo
of his Invention, but states that It In
of importance tu the mining industry.
Ho will forward tho model hh
soon as possible, that tho patent may
be issued. ,