Eureka daily sentinel. [volume] (Eureka, Nev.) 1871-1887, 1881-08-17
THE EUREKA CON-. MANAGE
MENT.
Some COgent Reasons why There
should Not be q Change.

Some COgent Reasons why There
should Not be "a Change.
The New York Mining Record continues
its warfare against the management Of the
Eureka Consolidated Mining Company.
From its issue Of the 9th inst. we append
the following:
In response to our article Of last week, q
number Of the shareholders of this COM
pany have already assured us by letters
OF their desire to unite in q well-digested
movement for putting the business affairs
OF the property in the hands of men who
will know how to manage so that out Of an
annual product OF SO, $3.50, 900, the share
holders shall receive more than $3.50, 900.
At the same time, we hear that the Wall
street parties whose superserviceable ef-
forts to secure proxies for the continue
ton OF the old management, we found
ourselves called pom to warn Eastern
shareholders of the Eureka Consolidated
in plain terms, have ascribed to US an OBJ
ject connected with the job Of refining the
base bullion. Having a strong ~pecuniary
interest in securing the reelection of the
old management, after the fashion OF their
class, that cannot imagine that anyone
could possibly work to a contrary end, with.
out also having like themselves a per-
sonal ~pecuniary object to further. Our
sole interest in this matter is to see that a
mining property of such intrinsic worth,
as for four years we have maintained the
Eureka Consolidated mine to be, shall be
30 administered, financially, as to illus
trate that a gold-silver mining company
may be made to stand before the business
world on ~ high q plane, for example, as
that OF the Cambria Steel and Iron Com
pany. The Richmond Consolidated, with
$40 0 shares Of the par value of $25 per
share, is selling in London at $50, while
the Eureka Consolidated, with but $4,000
shares, Of the par value Of 500, is selling
in New York at but $40 per share. The
Eureka Company, with o product during
the last half year of about $3.50, 900 have
paid their shareholders but $l50,O00.
Colonel Chisholm. the proprietor Of the
Record, is regarded all through the min
Ing States and Territories as a conscien-
tious publisher and gentleman Of the high
est integrity. In the present instance.
he is unwittingly attempting to do that
which must rebound to the detriment Of
those he seeks to serve. The SENTINEL is
in a position to demonstrate that a change
Of management can result in nothing else
than serious injury to the share holders Of
the Eureka Consolidated. In the
first place the present management Of the
affairs of the company is faultlessly honest
and economical. There Is a total absence |
Of leakage or waste Of any kind. In strik-
ing contrast with other corporations there
are no sinecures quartered on the Eureka
Consolidated. The Superintendent, clerk
and foreman at the mine are the only
officers carried on the payroll at this epd
of the line. Jobbery, commissions and
percentages are alike unknown in the man
agement Of this property. The SENTINEL
is on the ground and knows whereof it
speaks. Briefly, n in general terms, it
knows that there Is no mining or other
corporation in AWerica better or more
closely managed than the Eureka Consoli-
dated. Mr.. 7. j. Read, the able Superin- |
tendent, is a gentleman who has resided in
Eastern Nevada for twenty years, and is
universally regarded as one Of the most
correct and careful business men to be
found in any country. He took the mine
at a time when it looked much worse than
it does to-day. He has kept the work of
development well ahead. and has 10 sight.
at this moment sufficient ore to guarantee
the payment OF the Usual dividends for an
indefinite period; certainly for a year to
come, and possibly much longer. We
know this from a personal inspection aud
examination of the mine, made but re-
Gently.
The Mining Record seems to think that
the gross yield OF the property bears no
just proportion to the dividends paid by
the company-that too small q sum has
been divided among the shareholders. 1t
seems to lose sight of the fact that the
company has been under extraordinary
expenses for the last six or eight months.
Besides the usual and regular mining and
smelling account, the X X ground has
been purchased at a cost of $3.50, 900. The
new shaft and hosting works necessitates
q further and additional outlay of another
quarter OF a million. This purchase and
Improvement became an absolute necessity
for the future Of the mine. The new shaft
had to be constructed. and the K X owned
the ground where it should be put down.
Hence the purchase. Ore was found in q
winze on the 1400-foot level. Water came
in SO strong that the men were driven out
Of all the workings below the 1900 level.
The new shaft is designed to work these
lower levels. 1t is not being sunk on q
mere venture. The managers know of the
existence Of ore down there and are going
for it.
1t is Superintendent Reads policy to
work the poor ore Of the mine with the
good. He could earn two-dollar dividends
for a few months by extracting none but
the high grade ores. Manifestly this
would not be for the best interest Of the
stockholders.
And now o word about those who are
seeking to get control of the property at
the coming annual election. Their mo-
tives are entirely selfish. They hope to
benefit themselves in one way and another
at the expense of the shareholders. The
SENTINEL begs to assure its esteemed New
York contemporary, the Mining Record,
that it is familiar with all Of the facts, and
understands fully why and for what pur-
poses certain parties are demanding a
change Of the management. As stated
above, the Record is unconsciously lend
ing itself to the schemes OF this clique.
We invite the particular and special atten-
ton Of the Record to what follows.
The Eureka Consolidated has an unset
tied case against the Richmond for q mil
lion dollars damages. growing out OF the
extraction Of ore by the latter company
| from the celebrated Potts chamber. Siren
uous efforts have heen made to settle these
| damages with the present directors OF the
| Eureka Consolidated for a nominal sum.
| Thus far all negotiations have failed, the
Eureka directors firmly demanding
| something like the full amount claimed.
The Richmond is interested in getting q
new Board, one that will be pliable. and to
| that end, as the SENTINEL is informed and
believes. is taking a hand in the present CON-
test to Dust the old management. In this
particular alone q change means several
hundreds OF thousands OF dollars out OF
the pockets of the Eureka Con. stookhold-
ers. Other parties desire the control OF
the bullion produced by the mine. and
they are clamoring for q change. Still