Eureka daily sentinel. [volume] (Eureka, Nev.) 1871-1887, 1878-05-11
THE EUREKA CONSOLIDATED.
Is It a Good Investment?

18th, contains the following
There is a mine located in Eastern
Nevada, called the Eureka Consoli-
dated. 1t has so, 200 shares. In 1875 a
deal vas made in the stock by which
the price vas advanced to $40 per
share, and under various fatterinp
promises, large dividends and skilIful
manipulation, a large part of the stock
was unloaded upon the public. Then
the price broke down to $40 per share,
an assessment was levied, and during
a long period of discouraging delay
stockholders were forced to sell their
shares at a ruinous loss. Recently
dividends have been resumed and the
price OF the stock has advanced to $50
per share. Doubtless this is a good
mine ; but, considering the grade of
the ore and the dividends already paid,
1t Is more than probable that those who
lnves at present prices will wait many
years Before getting their money back
In profits from the mine. 1t looks as if
the manipulators were preparing to
unload for another turn in the market.
Considering the course of the Chron.
tcte, and it's persistent and indiscrimi-
nate assaults on the mining industry of
the coast, such a slur or misrepresent-
alton as the above is hardly worth no
ticing. There is no mine so prosper
Gus, none so honestly managed, nor
any whose permanent value is so
clearly demonstrated, as to be beyond
contraventiop, that can escape the at
tacks OF this unreliable journal. We
call to mind an article published in its
columns a year since, in which the
ground was takent that Eureka Consol-
idsted, as an investment, was a Wild
cat, and that purchasers of its shares
would be surely bitten. The stock
was selling at Sl3 per share at that
time, and doubtless the Chronicles
warning hadstbe desired effect OF pre-
venting timid investors from buying.
Since that date the Company has paid
81 200, 900 in dividends, and the value
of stock has increased $40 per share.
BY following the Chronicles advice,
those who were frightened out of the
investment, have lost just $40 on every
share of stock that they were kept
from purchasing, 1t is to be presumed
that the paper was as well posted a
year ago as at the present date.
HOW THE PUBLIC WERE GULLED.
1t says that in 1875 a deal was made,
and a large part of the stock unloaded
on the public. We incidentally re-
mark, that during the period Of this
deal. 81 900 900 in dividends were de-
clared, and as the fun naces and mine
furnished the necessary coin, there
must have been some merit in the
movement. The public upon whom
this stock was unloaded consisted of
two men, Messrs. sharon and Zeile,
who together bought and owned about
50, 900 shares. Their invest
ment cost them $1,000, 900, and as they
are the great public who have beer de
ceived, it is we'll enough to tote the
sequence of their purchase. Senator
Sharon held his stock until about three
months since, when he sold a major
part of it to Eastern capitalists. We
are reliably informed that he made a
profit of $40 per share, a fair interest
on his portion. DR.. Zeile, who bought
a block OF 20 900 shares at the time this
deal was made, paid therefor an aver.
age OF $50 per share. lie has received
in dividends $3.50, 900, and his stock on
the day the article appeared in the
Chronicle was worth 81, $50, 600, or, in
other words, he has made a clear profit
4 " 2tpOsOVVs ~ " kho EulIth
public.
UNCERTAIN oRE BODIES.
The Chronicle grudgingly admits
that the Eureka Consolidated is a good
mine, but qualities its admission by
the statement that at present prices
those investing will never get their
money back. 1t advances no argu
ments and gives no reason for its be-
lief beyond the remark that the extent
of the ore bodies are very uncertain.
We fail to see why developed deposits
laid bare and open to the inspection of
every casual and disinterested visitor,
are uncertain. There is no attempt at
concealInent; no barred drifts mol
closed shafts at the Consolidated. We
have yet to learn of a single instance
where superintendent Donnelly has
refused to admit experts, or others, to
any part of the mine. Even those who
have no other motive than idle
curiosity, are daily taken through the
hidden depths, and no man has yet
examined it, who was in any way
competent to judge, but has unhesi.
tatingly asserted that there were twelve
months dividends, at the present rate,
in sight. Show US any mine in the
world where there is a certainty of re-
ceiving s36 interest IN a principal of
$50. and we will admit that the Chrona-
cle'S insinuations are based on truth
and reason. Until that showing can
be made, we remain firm in our belief
that that paper is a classifying, untruth-
full, !, ing sheet, and that the writer of
its mining articles is either actuated by
a desire to pull down the good with
the bad, or else inspired by a purpose
to blackmail the leading industry of
the coast. Its reputation and general
drift OF its comments on the Nevada
mines render the latter the most proba-
BILE solution of its animus.
Eureka District.
The apathy prevailing in the Com