, 1870-11-01
COLORADO.
The Silver Mines of Boulder
Creek, Colorado.
Financial Management OF mih-
Ing Properties. :
Colorado and Wyoming-Why Colo"
rado Should be Admitted as
a State,


rFRox orR SPECIAL CORRESPONDENT
SALT LA11 crErt Oct n.
MINING AND THINGS II COLORADO.
Wtiya I wss in Denver, the othar day.
company was organized, witt, J. B. Chaffee -
presideut, to build railroad into tho Boulder
COIL AsA, which IL fifteen or twenty n1t1ea
froro the line Of the Denver p1eiAc. Il will
be done 1t once, and in time, doubtless, con-
timed up Boulder Creek to the mines On the !
leads OF that stream The discovery, in that |
vicinity, during the laat summer, Of strong, |
rich silver lode. Ia ono Of the most strtk- |
ine Illustrations Of Colorado life. Pros
pecto,s hare been over the ground
everv month for ten yeara without eeeing the |
diamond In the g1aEs roofs Such things ara as
}ialdo 70 happen In the gotd-pAvad straata at
the mining towns, and a hundred TeaH hence,
AZ stout the unfrequented sources Of the !
strea1ns. now, Or in 1853;
The discovery Of this lode was the aeasar
ton OF the past season in mining circles. i is
said 70 vary In thickness FROM Que to four feat.
to ba trace1hle for mile or two on tie su--
face, and to paE in silver about S400 per ton.
Tbs discorertra scld hslf interest . fa6
they % IRE mstios perhaps 5000 ! day out Of
It, clear, Prot, Hill, Of Black Hank, paEchss-
ipR ana reducing The ore.
Central City Is the headquarters or n1inirg
aeti1it. IN Colorado. It Il the metropolis Of
ptobahlv the richest mining district On ths
iorciEn corporations, who appear to hare
managed their aaAsrs, for the most part, With
tue view Of s1indling their STOCKHOLDERS,
rather thsn msking money in mining. Let ms
The Combination Silver Mining Company
YES o.ga.led under the general ineospota.
.ion ,a1 Of Nav York. II 1sG5. Il paid
S3SN 600 for property on the high Bridge
Lode, 1t Belmont, y. 8 County, Nevada. oNe
Of the Trrsseea Of the corporation selling ths
ss@i asdeied It IT shs coo 55o sh1es, p
| vz1rc, 800; altho1gt tha LAW prohibits the
Issue in such cases Of mats stock
thsa the prope1ty it PROPOSES TO-, re-. tSs
individual stockholders personally responsible
for III stock ssa5d in excess of the vaIao Of
the property. In this csse, ta,e etoek WAS sell
ing On tho market for D tinn At $50 Pot share,
Or 1t the rate Of S4.0Q0 .oeo FOR the property.
E1ough OF it was 70 sold on bellan Of tha
corporation to give them = working capital Of
s. .3o0, 100. IN ahont two .cara they h1d e1-
hanstet It, AID run tile company largely in
tcbt, principally 10 themselves, As Trustees.
They had numerous employees At snoroauus
sz!4ricp, and they buils mill at cost OF
s5Nv,ooo: ltwas ID operation foaf weeks; snl
produced S135, 900 worth Of bullion, Sud len
1v-it T.s Just Is trust deed OF the property
waa ezecufcd 10 tecuse $500, 600 IN bonds OF
the econpsns-they lost the ledge, The mil
stopped, and, though the wosks coEtiaued to
yielded none. About s3oo.oso IN these
~ naau7 setusuent t59 eAeA xi;h w themselves, i,s
At perhaps 50 to so pcr ccntnr OF their face.
The bs1srce being retained in the treasury aa
part Of the assets oft theconoan5; Naturally,
sst,eneet4 sale IN bankruptcy, not long aipcs,
1.C80 shares OF it uere cold At two cents each.
The trust deed provided for tbs sale OF tue
. property on account OF the bondholders Or
default Of payment Of the ponds, principal Of
, ln.ereet.
.. Tue gauo seems to have been to snindss
the corporation By selling it the mine 1t a.
e1trno1diBaf5 prize; 10 s1iadss the putlss
BY stocking it At twenty times wh..t
; i VIZ wssth ard selling i
carital and involve the corporation III debt 4!
soon III possible, at least recklessls to plede!
the property for new ety1e OF prtfet1t.
: stock. OF bonds, which they managed to ab
= sorb themselves ehiei1r, often 1t Lalf par, il
payment Of indebtedness Illegally contrae.e,
!. change treir original etoek for bonds or othet
= wise dispose OF it: ard 10 20 manage II
:, : mine ss to prevent i from psyins the interes
;, on the bonds, and thus allow ii to pasa lat
- tho bands Of the hoIstera Of the Inter alnos
- :. at their option aB to time and price, wipin
~ out the original stock entirely.
Eut they we've cArgLt At it. Cn.!er the Ne
Yurk incorporation lAR Of 1881, the prope1t
Of corpuratious could Iot 30 pledge
At III for debt. In Nay, 1861, the f.w "a
20 amended "a to allow Of it's being done o
K cortltior ilat dobt sl,outd actua}lE eubsiHs
q that tue utittsn aseeht Of two-thltls at tl
= stockholders should be obainnd, AID ii
e1mc placed OF flo in the Itecordar's oEdce {
10 Tia cass have given above is IN il ua.zatio
It Of the vko1e business, aud speciafiy IN Co
10 orado. The Combination Company have NJ
er get attempted to sell uudsr tho trust dee;
ae and it i hardly liksly they will. Lec.u=e
=, telic,e tho Genital Gold b1.uir
Ii d1st. ThtE p-apeT,y Wa .1ves:ia:
il for sale under trust deea to satisfy a lot !.
lis bonds created as abo7a. Upon which, hoI
Il sa7oeste II II: n. 4. Jehs,o
VI NJ attorney. formsrly OF ulu.oi
or mefo recently Of Colorado. and npH Q: Ne
1t York, who VAS alao l,rge owne- Of Co|orat
~ mixing stocks. to rrntecs tic ps'cus'
o tion.-.ho legality Of these mossgsgte--w
rg argued At lenGth in t}r1 different suits. Gu
l,e iug the part snmmer, before Judge Dalv.
,st | tte Court Of Eomnsou Pleas Justsce Sppu:e
ID OF 1bc Superior Court, aud Judge Pratt,
IRE tho Surl eme Court OF ktGg'a County {Droo
he l:n), each Of whom delivered au elabosa
to opiGion tu tie effect that ihese trust deeda,
ts mortgages we're invalid, because, chiefly, til
I'D sere executed to secure 4 debt not alrea
re saaeisting-af there wad An Indebtedness
lcr $:5, eco. for in:tzncc. bonds woall le 1seu
Tie the other conditions prescribed in shs 1aw l.
IL. not been complied With Some :20, ,a00, q
Isl worth OF honda issued BY corporations otKa
al izetl uuder the New fcfk Law nrn Affected
no peal. The mortgages a,eiug set aside, I
he banaboldsIa Wilt ba obliged to b,irG 81
IN. zeairft tho corpoEniious, in Hhicl, the go
he fifth Of the rurchate Of eaid bonds eau
ea, tented in each ease. 80 Tar - they haye be
,at iseusd il good faith, and cold Tor yalne
,lc 1t cannut bur have i gt'otl effect on mimi
ION n it will 11ut tie nauagetaent VI tbs bl.slnt
~ bscl in tie hands Of the stockholders -of nj
81. REuse interest i: will .bs to make tho sic
Tue valuable. This will 90 Tar to iusu1e diaer
pg result from that attained under eEsttu
ing which thu object was to render barron I
Al mine aud Ii prsci,te the tteck. and tEen c:
ria ditinue are very diEer-nt noT in Coaota1n a
I'd, Ntvada from what they have been dutiuy
be last decade The cert u mining and Of llsi
trt- in the Rocky Mountains will not in future
Fls SO per certuul Of what it has been in tho ps
.sly / aud with the principal mincs Of the c9un
to | 1tyc1;iuE, Is they soon nust under tleas
her I c:slo1s, from The hAnds Of sharnesa to th'
on OF the Stockholders, > rasival OF mining n
ads 10 confidently looked fur that will stop
to arru.l falling on in the countrya psoiuc:
sti- Ct bullion
,m- cotnRAro At TIT: DOOR OF TIE rs1ny.
the Colorado has received perm 1nsnt in:te
,:h Of population the psst ses4on OF At least 8 Q
be- | Tie vote ut the 1a:e election was 10 per c
vas larger than IN 1868. The census il Ekels
red give them about 1000 population. =
I'm taese. and. perhaps, tha 10000 now conatit
iufe isg Wyoming, they will be knocking at
ugs door OF the Colon again q soon as couss
aesd assemblies Assa they will s.ve yeu ~ Pc
ft01HF&dn
The now cost the government about est, ,069 anl
!, 70 hlr. Tho population Of the 1attar huSa
ind t railroad, and would Ill be included in G
BY rado BY extending tue northern boundary
the Nebraska They hsve hsd three years
aen. t.sePs Railroad to ezablo then 10 fill
Ger. Pant soone Of = Territory, but the
=! sD'eaisiss e sss!5 sp:a5k{ns a51k NH iass
heE they did two years ago. There .!s m'nea
to- 6rn part Of the Territory, It is true, br
1our rnust be an Indian Territory far the pres
the unless somebody will contrAct to tit
ted. Cloud and his tatterdsmalions OF At once,
ding doit, Attach one degree bortle,icg Colo:
1rg. Wyoming that is worth anything to this 1
h4d eration: you bave recti6ed 90 III the boai
tho res Of the Territories; ron have left emo
: for ground for Territory Of Wyoming when'
. bv Jou want It; you have eayed the arpens
,oat, two Territories to the Treasury, rescuad
E.y few people Of Wyoming frum lifelong
oats salaEe By including them within the bot
for Of vigorous young State; you hsva bAlan
d 1t Colorado batter-a short. you haze do1
tbs good thing Ill round. It should hare
both done inatead Of organizing Wyoming, but
days rot too 1ass. fer It will harm nothing II
d no the organization lap.e for ssora or tn
6 of yta1s+ It was suggested in 1S5s. but
luts. ming had great topca then-hopes which
liter sAui.hed nth tha passage Of time. do
n in believe it would meet With serious opposd
irst row. ereu from the Fsdeta1 officers Of
tiles Territory.
:oop- With this addition to her population
1talu | without it. Cplorklo Hn SAX. pext winter