The sun. [volume] (New York [N.Y.]) 1833-1916, 1879-06-10
THE SPECTRE or THE BIo BONANZA.
MIR. Alexander Delmnr at Issue with the Men
of the HuIlIon Club.


To THE EDIToR OF THE SUN.-iSir: II you
will turn to tho Report Of the Silver Commits
sion page 9. you will observe that on account OF
my technical qualification for examining mines
Of the precious metals / was commissioned
officially to visit the mines Of this coast and re-
port upon their probable yield Of metal Ac-
cordingly came here in November. 1876. while
tho famous Consolidated Virginia and Califor-
MIA mines were in bonanza" and when 1t was
almost death to/hint that they might soon
peter out" The stock Of each mine then
stood at about j5 which. ms there are 100000
shares in each. came to $50 100000 for the
whole bonanza. | examined these mines care
fully. and. in the face OF certain spccious APP
pearances and OF general conviction to the
contrary came to the conclusion that the
Bonanza WIS on its last legs and the public
was mistaken. II | had been n stock specu-
lator. I could have made n fortune by bearing
the stock but was not. | had been clothed
with grave trust. and discharged IT faith
fully and resolutely. went back TO Wishing
ton in January. 1877. and ut once made ily re-
port. You will see 1t in the appendix TO the
first volume Of tho Silver Report. pages to CS
inclusive. Ii was sent to the public printer
Feb "a. 1877. In June OF tho same year re-
turned to California to examine some other
mines and finish my " History Of the Precious
Metals" now in process Of publication. 1t was
not until two months after my return here that
my report on the Bonanza mines was given to
the press. Its publication was tho signal for
general outburst Of indignation from the stock
iobbcrs and their organs. With one accord
they decided that | was n false prophet and
had either not examined tho mines carefully
enough or did not understand the subject.
MEANWHILE however. the stock had quietly
iullen To- half price, and this fact. more than
any confidence in the oNpertness Of u mining
engineer who Ind been denounced 10y the
" Bonanza press" gave me few weak and
tren bling friends who thought that perhaps |
mighr be- right after all. provided. OF course.
TINT WIS not denounced any further.
Well. you know the rest. After they had care;
fully scrapcd every frngrr," every neglected
crevicr and Granny for ore after they had min
gled the ores below with worthless quartz, so as
possible. after they had vainly explored the
upper lryels for possible FINGERS and Oilshoots
OF the Bonanzh. the managers were Obliged 70
let the daily product Of the mines tell the truth.
This product was nothing but a milling quartz.
ana the TACT which / had perceived more than
year before was now plain 10 everybody-the
bonanza was played out. In November last
after the ll2zf' IN Sierra Nevada, the stocks 81
the Big Bonunzn fell to about 50 share. which.
for the two mines. amounted to about tj.OOO.OOO.
a fall of elevt n-twelihs from the value they
bore at the time examined them. As for the
product. II had fallen 10 wretched quartz.
viii IN scarcely paid the cost 81 extraction unl
reduction. The condition Of the mines. from
their great size extensive ramiilcntions. ana
hasty working WIS and Is extremely danger
Gus. They may cave in Ut any time. ms did tile
o. hir mine In 1868.
Surprising that the Big Bonanza had finished
rs history and would meyer b. heard OF ngain
as n serious enterprise. | wrote an account OF
II last yrar. entitled the 'Kcal history Of the
Big Bonanza" in which facts. briefly alluded to
n this letter were set forth at some length.
Imagine my surprise, in taking up late copy
~ THE sun. 10 Ind that the spectre 81 the Big
Bouunla had been introduced upon New lork
stock Exchange and that my Old fellow towns.
men wrre BUYING ~ shares nj the rate OF
s7QO0.uOO or $4,000 900 for the two mines!
New Workers 1T mo say word - you. do
not wish to hurt Dave Croly or his Bullion Club
Croly Is nm old friend. and the Bullion Club |
know nothing about, except that. rs | under
stand II IL interested IN promoting the sale OF
mining stocks in New York But let me ask
you 10 pause moment before you put your
money into n mine. aud give YOU. In a few
words the benefit Of nearly three years resi-
dcuce On this coast. and "a pretty extensive
knowledge Of its mining enterprises. do this
IA the interest Of legitimate mining. that IL may
have strong and pot weak support. md that It
may not be retarded by the success ot mining
bubbles. DO IT, also, in the interest VI many
persons oi slender means who may hs -nguli"d
in the desperate chances or the lObbery that
/. ON the wholr-and Tor my one large dis
/ trif rs California, Australia. British Colum-
h.n. N'.-uunrtZ mining by fresmen never did
and never can pay. This is due To the fact that
! there were and are enormous quantities Of. t6e
mons Gfs, aot1hnE There nre also enor
The rate OF from 500 10 $50 per day per suryiy"
ing man. All new gold now ubtained has TO
compete against this cheaply produced metal
through the level OF prices which il Inns created
ana Tor PERHAPS century or more 10 come the
neW soid cannot maintain this competition
?. Although quartz mining is on the whole
unprohianir; people pursue II because il POS
s.S7i tue ,inseinHtion Of lottery and policy
gambling The players know that on the whole
y Is a losing game. yet they continue to pursue
and t"ToT yIs nr one h9prs to be an exception.
ihs. Ihete are maGy good mining propertirs
Dul ines are ns one % hundred Of worthless
ones without the assistance Of the highest
PROFESSIONAL skill. and without the utmost good
Ihlth ana pro1ity in every part Of the manage.
ment. u is simple madness 10 invest in Tho
poker. ''e' p'"'
a. g.. DO not be mised by the figures OF past pro-
are long ince over. and the placer mines ma
exhausted for white men The Comstock lola
l II hon,'Y.onned and used up. 1t is not impos-
sluir NAV hnoth"r body OF rich ore may be- dis
covered m u. but IL Is very improbable Tint its
Iss77GG' oc, W. ever again touch the figures Of
me current product of gold in California
ABOUT $4,000 600 year. is derived chiefly from
ri I W. m.tr MINIS. usuhlly close corporations
WHO nave obtained the privilege OF washing the
mis- Of this state into it, valleys. aud, Tor the
sth" ~ @i one cent worth OF gold In cubic yard
oi rhrtn' 81 ch9Iing It's rivers. filling up lis sin
El' nhrbor and utterly running its Agricultural
- y;nSIis; ,Sre noth minority aud minority reports
OF otaie commission on Mining D6brisJ
4. II you desire to invest in a uunrtz mine do
n"t nuy any OF the stocks offered in public ex.
CuuhE"' ~ "A rule, such stocks are trans for the
unWHrY' II rarely happens that stocks nre ~
lrrtd lnr sale until after the true value of the
!llhH n known 10 the managers. The stock il
tt"u oli"iod either for more ;han Il is worth or
!Ml'r me product has been secretly extracted
J. ". ohp sale way tu invest in a mine is to iook
~ ~ Or rmpoy professional assistance 10 ioot
ruin. N"i1'''"E anu
-, o. There are plenty OF mining chan cos-son,e- |
.inl's lliy turn out 10 be- goOI onrs-for sale ON
,iir coast. chiefly in Nevada Men hawk then, |
thnut the streets ot san Francisco nros
l''lnt no sooner discovers some Indications
u"h u' hurri"s 10 the city for urcuninry nssist
iA,' |! h'lp develop his find " or To- sen II out
IlEhL lh"s" iinds" commonly range in value
rom so'u tu $4,000, and for these sums Won can
'ui )'ui Own mln". INCORPORATE il Ia Npw York
ihl manage II Yourself. Thpcost of eNnnlninp
N' pipuriiy-Vurying with distance Tina lnsf
,"sl on Journey, length VI excavation nssnys'
'Vuttloh 81 expert ctc.-is often as murh nr !
lnIr lhhh thot OF the mine itself. Titles ara
"urh 50 long n any work is continual
y, ~ - 81 W.fNmrn IN mining camps are about
-'3V 10 - "a uhy, vary ng with locality All fires
wa ir'snt are exceed inEly high on hceount
y Ialroad monopoly. All kinds of machinery
y ilAl's can Ice procured here in warehouse
u IN uIN'th'' ol say i've cents per pound freight
nv 'NEHhs's' ana twenty-five per cent pront
II Wv l'Ik prices. ALEXANDER DEIMAn
r1lHl'Iy - rector AT BurrHu OF Statistics
thi"d Ntui"s silver Commission etc.
SAN Francisco, May 81.
hrooklyn'A Railroad War Postponed