Morning appeal. [volume] (Carson City, Nev.) 1877-1906, 1877-05-05
DION BOUCICAULT ON THE BONANZA
MINES.

MINES.
New York, May 3-Dion Boucicault writes
to the Herald as follows An editorial on
mining investments appears in one of the
New York journals The statement therein
is inaccurate so far as the two mines called
the Bonanza are concerned. Every man, es-
pecially an editor, is entitled to form his own
opinions, but he is not entitled to form his
own facts. The journal i'll question repre-
scented these mines to be balloon, and the
managers to have used trick and fraud in
office. Permit me, as one of the sharehOld-
ers whose fate is deplored, to furnish the
facts composing the single history of these
mines The body of ore called the Bonanza
was, when discovered, divided into two mines.
One half was called the Consolidated Virginia,
and was first developed The share holders
paid in assessments S48O, 900. [ speak from
memory. This mine has repaid its share
holders S26, 900, 600 in dividends. The other
half of the ore body called the California,
and on this mine work was commenced later,
but its developments were so managed that
the shareholders were not called upon for
any assessments whatever, have never to this
day been called upon for any assessments,
but the California mine has, nevertheless,
paid twelve millions of dollars in dividends
on its shares. Wherefore the two bonanza
mines, being one concern, have paid thirty
eight million dollars for outlay daily
record and exhibited no signs of exhaustion
There is a simple and clear statement of the
matter. Eighteen months ago the fire in
Virginia City totally destroyed the buildings,
works and machinery of these mines, thereby
stopping further products for the time. 1t
was expected by the shareholders that the
managers would suspend the payment of
monthly dividends until the works should be
rebuilt. Unfortunately they resolved with a
pride somewhat verging on imprudence, on
going on with the payment of one million
dollars per month in dividends, and to do so
were obliged to deplete the bulk of ore
accumulated on the dumps during months of
active work and use their reserve capital.
When the works were restored and produc-
ton resumed this reserve no longer stood
against the emergency Last Winter this
emergency presented itself The Consol-
idated Virginia mine was found to require
cleaning and retimbering, further explora-
tons must be made to ascertain the extent of
the mine. To accomplish this, productions
were temporarily suspended. When bank
ing corporation or railway directors find their
immediate earnings insufficient to pay the
usual dividends, they have recourse to Dor
row money or using their capital fund to con-
ceal their momentary embarrassment. The |
of the Consolidated Virginia |
objected to adopt this policy and stated their
condition honestly Gamblers on the stock |
seized this opportunity to depreciate the |
market value of the shares, and Consoh- |
dated Virginia pulled down its sister mine
(California) in its fall, although the latter
mine continued and still continues to pay |
over 81 ,OOO, 900 per month in dividends to |
it's shareholders Were the managers of the
Virginia bound to regard solely |
the interests of the shareholders, or were
they called upon to take into consideration
the operations of dealers in these shares on
the stock exchanges" Were they to regard |
the real value and prosperity of the mine
rather than consider what value gamblers
choose to put upon it and what they might |
say of its prosperity! | honestly think they
acted rightly and have right to say so for
| am a large shareholder and have been
so for the last three years. l have followed
shrewdly and attentively the conduct of their
business, feeling confident they are faithful,
1ard-working, honest men, true to their
rust. / hold at stake over one hundred
thousand dollars on that opinion. | shall
lold it to the end. If l lose that stake it
will not be through their Encouragement nor
" their dishonesty. Mines are mines, the
leXI SIrOke OF Cne plckdAe Inlay ueVeIope tHe
md of them. That event is as much I'M
,nown to the managers as it is to the share
folders A mine is only pocket and every
'ocket has a bottom. Every shareholder
nows that, and he is a fool that does not
ccept that contingency along with security.
sut do revolt from the injustice done these
entlemen by attacks on their conduct and
heir attempt to attribute to them results
rought about by the wanton use made of
he bonanza shares by gamblers in the stock
xchange.
THE FUNERAL OF DAVE RED-By the