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