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About The Sumpter miner. (Sumpter, Or.) 1899-1905 | View Entire Issue (Feb. 22, 1905)
It 'jv.w.if,'.,i,,''r VOL. VI. 60LC0NDA DEAL AT LAST CLOSED "PENDLETON, ORB., FEB. 20. GOLOONDA DEAL CONSUM MATED. STOCKHOLDERS WILL BR OTULLY PROTECTED. RE. SUMPTION IMMEDIATELY. "JAMES A. HOWARD." The above special dlpstoh, delay d in transmirsion, was received yes terday e-vaotag, too late (or publloa tioo ia 4e (regular edition of The Miner. T-ae message, however, was bulletiaad, and oreated a feeliug of immeaee jatisfactiun in looal mining eirolea. The faecal ipublio of this diatrlot ia familiar with the history of the Goloonda mad with the various phases of the recent negotiations, wblub, during rwoeat months, have been pending for its reorganization. The property, eiace tbe -sensational failure of 0. B. Wade, of Pendleton, presi dent of taa carpa ti on, bar 'been the grand prise far sehlob a number of wealthy capitalists ,aud syndicates have striven. The old board of director), however, stood firm despite the tremendous InauoiaJ crash which itivovled the fortunes f their chief executive officer, and positively re iused to transfer ooatrol af the prop erty without reoeiving aasurauoe that the interests of all of the stock holders, the big fellows audita little fallows, majority and minority -arere fully protected. Mauy plans for a reorganization of tba old company were submitted. 8eretary Beokwlth evolved an agates meet scheme, which he later aban doned in favor of a bonding plea. The popular idea that (be bonding plan origlated with Alexander Prus sing, of Chicago, trustee for minority stockholders, is incorrect. Mr. Prussing did submit .4 975,000 bo tid ing scheme, but only after the details of a simitar plan had been worked out by Secretary Beck with aud ne gotiations bad been opened with San Franicsco and Portland capitalist. Mr. Prussiug's plan was voted down by the directors aud it was then that the Chicago mau. uctiug through II. T. iieudryx, of Sumpter, appealed to the federal court fur an injunc tion. For a time it appeared that a deadlock would result, with Prussing holding the key to the situation. However, all parties dually got to gether and when, after a receiver had been appointed, a Portlaud and San Francisco syndicate offered to buy conarol, he proposition was prompt ly aooepted. - - U-J!"" '"!., v SUMPTER, OREGON, Thin speedy coMummatiou of the deal was brought about through the appoiutmeut of John Vert, of Pen dleton, as receiver, who, wbilo fully empowered by law to aooept the boud syndicate's offer, without consulta tion with other officers of the com pany, nevertheless submitted the plau to the direotory for sub-official ratifi cation. The $00,000, derived from the sale of bonds, is to be used to pay off all the Indebtedness agalust the mine, amounting approximately $30, 000, and the remainder is for devel opment and operative expenses solely. It is undoubted that a working fuud of $54,000 will, if outlayed by a competent mlulug man, result lu placing the Golonuda high on the list of great western gold miues. On February 0, two reprasenta tlvas of the Goloonda bond buying andioate, arrived In Suropter, aud under the guidauoe of General Man ager Howard, visited the mine. H. H. McCarthy, of Portland, repro ssnted the webfoot end of the syndi cate, and L. E. Norton was the aocre dited minister of the California 000 tlngent. The visit to the mine of these gentlemen was merely to cur sorily glanoe over pbysloal condi tions, they having already received expert reporta on the property from some of the most eminent mining engineers in tbo west. Their visit resulted in the consummation of the bond sale, as announced lu the above dispatch. General Manager Howard is the chief gainer from the transaction. Personally and an trustee, be holds a $30,000 mortgage agalust the mine, which will be immediately paid. The always-iutereating history of the Goloonda mine has been eeuas tioually brilliant- -iu spots. It whs first discovered in 1887. For teu years little work was doue on the claim. It was kuowu to be au exten sion of the great mother lode, but surface values did not aotumad wido atteutiou. Josupb G. aud John T. English, of Danville, IIIIuoIb, father and son, purchased the property in 1897 for $35,000, thero being but 250 feet of development done at that time. The prospector's tunnel was continued into the bill, developing the two big ledges sbowu on the sur face. The east vein proved to be from 20 to 30 feet wide, while the west vein, only about 80 feet dis tant ooj the surface, averaged from FEBRUARY 22, i 8 to 13 feet. A abaft was sunk, outciug the east velu at 100 Met. tfrom this shaft a 00-foot tunuel was run to the west vein, which was drifted on 30 feet to the uoith and 220 feet to the south, b'air values were found in this south drift. The shaft was continued to the 200-foot level. A drift was ruu to the west velu on this level, but uo driftlug was done on the ledge, but a south drift was made ou the big east veiu on this level. Forty feet from the commencement of the drift, it was found that two ledges converged. MarvelotiBly rich ore begau there. Two drifts were ruu on these ledges for 120 feet south, where they oame together again. Around this ellipse of argllllte was deposited ou eithor side several feet of ore o! such mar velous richness that it astouudad the mining world. Everything between the walla was literally plastered and permeated with gold, aud it is re ported ou the beBt authority that more tbau $100,000 in gold was taken from this lens of ore within a few w-seks. All of this rich ore was shipped for treatment, aud a great deal of It went directly to tho re finery at San Frauclsoo. So rich in gold was it, indeed, that It seemed that nature had forgotten her silica in mixing the charge for this rich vain. It la reported by Mr. English, Sr., that specimen ore to the value of $50,000 was takeu and carried away by miners aud visitors before ita real value became kuown; aud this cau well be believed, since there Is scarcely a cabinet of free gold ores iu the United St at oh that Is not adorned with ore from the Goloonda among its richest specimens. It ia further said, that after the fabulous richness of this ore shoot had become fully kuown, it was uecessary to sta tion guards, day and night, over the extracted ore, pending shipment. It is.a wellkown fact that averrge assays takou from this leus of ore ofteti ran from $5,000 to $20 000 per ton, while picked samples and specimens assayed hundreds of thou sands of dollars per ton. Mauy samples were almost pure gold. While searchiug for this licit ship plug ore, laige' bodies of lowergradu milling ore were disclosed, and this justified und finally led to the ero tiou of a quart mill. One of the largest and morit Htjpjtuutlai mill buildiugH iu the district was con structed, aud iu it wiih itiHtHllud a 20-atauip mill, fitted with pi lit oh and till modern improvement-) and HipiirtuiiijH, including 18 Johnson concentrators for saving the vhIiiuh in the rich metallic ores. A five-foot liryau mill win also put iu and used by the old compauy for haudllug the very rich free-gold oreu. This mill produced somtbiug more tbau $100,- 000 iu gold duriug the brief period it was operated by Messrs English A Son. Development aud exploitation were continued upon the property L NO. 26 until there are now upward of 5,000 feet of working shafts, tunnels, winzes, cross-cuts aud tip-raises iu tho ground. While no definite date has been set for resumption of operation 1, it ia believed that aotlve work will be giu as soon as the nooeesary legal formalltlos are observed by the re ceiver. Messrs. McCarthy and Norton re turned to Sumpter this morning. They confirmed the facta outlined lu Mi. Howard's dispatch to the Miner. H. T. liendryx, who represents Mr. Prusslug, was also the recipient last evening of a dispatch from Mr. Howard, similar In Import to the one received by The Miner. Mr. Ilea dryx, when seen this morning by a reporter, gave a different explanation of the deal consummated. He said : "Meiers. Nortou A MoCartby, rep resenting San Francisco and Portland capitalists, have purchased all he chime again it the Goloonda mine, aa well as many shares of stock, rep resenting the oontrol hlthero held by the Pendletou officers of the com pauy. No bonds have been Issued. Cash was paid to the mortgage holders, and assignment thereof waa made. Mr. Norton telle bm that bonds may be Issued later oa, It the. company, whloh is now controlled by him and his aasoatatea, feel that tbejr need mora money.' aaaaaVaaaaaftMaMaVaaagaBjaaaaaja) First Spring Chtfus of KoMrs. Fred Nortbrup saya aud avers that he Is willing to make oath to the" statement, that he was awakened this morning by the first glad sing of a roblu chorus. Fearing that he might be dreaming, be arose at ouce, went to his door aud saw the red-breast birds, and atood there listening, enthralled by their music He further declares that he bad Im bibed uothlng stronger than the milk he sells to well pleased cue tomers, aud he knows that his think tank, his ears and his eyes were all In working order. He waves his arm around ami calls ou tho baluiy atmos phere, the bright sunhshlne, the melting snow aa testimony corrobor ating IiIh story. Eight muu, under Superintendent M. II. Butler, are developing the Mattoou oonipauy'a property in the Pocahontas diHtrlct, with flattering HUC00-H. Two ore shoota, 8 iin.l 0 foot wide, have bean exploited by a 200 foot drift at tho property of the Square Deal Gold MimiH company, at Mal heur City. It ih reported Unit tbo milling capacity of the Black liutta mint, lu Grant county, will ba doubled lu the spring. The property Ih making an exceptional showing. An Important strike was made last week on a quart, veiu uncover ed ou the old Mike Asher placer diggings, at Pocahontas. Samples assay $1000 per tou lu free gold. 5K