The White Pine news. [volume] (Treasure City, Nev.) 1868-1906, 1881-07-23
THE TEAcUP MIDDLE.

consultation Between the COmuanyas
Representative and the Creditors
Not n Very Satisfactory Conclusion.
As stated in these columns a few weeks ago.
the Teacup Company's operations were sus-
pended by one or two of the creditors placing
attachments on the property. Pending these
proceedings 1t was discovered that it had
been mortgaged In New York last April for
S27 800. This was entirely unexpected, and
cast a cloud of suspicion on the minds of all
the creditors, who before were inclined to
act l~eniently toward the company. They felt
that the mortgage was a menace to their in
%terests, and that the company. having re-
sorted to sharp practice, was no longer worthy
of their confidence, Under these circum-
stances the manager here, Mr.. Ed. Smith.
found himself unable to make any satisfactory
arrangement with the creditors. and he SO
reported to headquarters.
Last Monday, Mr.. Herman Kobbe, the
eompany's representative, arrived from New
York, TO straighten out affairs. During the
past four days he has held several confer
ences with the creditors, none Of which
proved satisfactory. The entire indie btedness
of the company is only about $4,000; 5000
is due for labor and the balance for supplies.
Mr.. Kobbe offered to pay off the labor claims
and give the company's notes for three and
five months. without interest, for the balance
of the indebtedness. This the creditors re-
fused, but offered to accept the notes if prop
erly secured. The agent. having no author
ity TO secure the notes, and after finding all
other efforts at adjustment futile, has agreed
to return to New York and ask his company
TO ratify these terms. This is how negotia-
tons stood Friday morning. In the mean
time tho miners and workmen, who have been
kept out of their money for two months, will
file their liens and preferred claims, end wait
further Developments from New York.
This is a poor way TO do business, and the
company. TO put it mildly, shows n lack of
true business principles, if not a disposition
to deal unfairly with those who have assisted
them in their operations here. They have a
good mining property, and could, if they only
went TO work in the right way, turn out and
skip in the next ninety days twice the amount
of their Indebtedness in bullion.
In copclusion we would offer a word of
disinterestcd advice to the Teacup folks in
~ iAiCutai III IsAeAblu NOhpublcH III k0uolul.
In the first place it is rather too much for
them to expect that the poor, Woodworking
men who live in the district in which their
property may be located to develop il for
them and if it turns out valuable in five
or six months receive their pay from the
output. and if not whistle for their coin. In
the second place these Eastern companies
should always bear in mind that tho sum of
money they are told will open a mine is certain
to fall short Of the requirement. Men of ex.
perienee laugh whom they hear of companies
starting in with $4,000 or s2O.0o0. The know
where they will land, and they know that
people who calculate on n mine paying ex-
penses from the start are doomed to disap-
pointment. 1t requires time and capital to
make mining property productive. and the
sooner Eastern people thoroughly understand
these facts the better.