Eureka daily sentinel. [volume] (Eureka, Nev.) 1871-1887, 1881-10-08
FINANCES OF THE EUREKA CON.
Secretary Making Things Plain
to the Stockholders.

San Francisco, Sept. 70, 1881.
EDITOR MINING REcoRD-SlR: In an
article on the leading editorial Of your pa
per OF Aug. ~, it is said: 1--WE have re-
peatedly had occasion to remark upon the
inexplicable character Of the financial
statements OF this company 1.-THE Eureka
Consolidated) presented for the informa-
ton of their shareholders"
Recognizing that the published report Of
q mining company is always q proper sub
ject for review, and desiring to assist you
in giving shareholders OF the company the
fullest information, l ask the privilege Of
contributing to the columns Of your jour.
nal, SOME facts regarding the bullion pro-
duct which might escape observation, il
the reports were not explained.
l concede. that one glancing hastily at
the report might not be able to compre-
bend that part relating to bullion. Some
years ago the Board Of Directors then ex-
isting desired that the monthly and an
nual reports should respectively show not
only the balance of bullion OH hand at the
end of each month and year, but also the
balance IN hand at the time Of making
the report. In this manner the reports
embrace the product Of one week succeed
ing the close Of each monthly and each an
nualr report. AS an illustration, it may be
said that il the fiscal year ends Oct. 1,
1880, there will be embraced in the bal
ance Of bullion on hand, the product of
the first week in October.
You refer to page Is Of the Tenth An
nualR Report, and remark that the annual
bullion product Of the year was 10, 592
tons 1.-THE report shows that the product
was 1882 tons. but this was evidently a.
typographical error and does not cut any
figure in the caso). You add to this 1906
tons OF bullion carried over from the pre-
vious year, and deduce conclusions there
from. / can readily point out where the
foundation OF your premises is wrong,
and why your conclusions are erroneous,
yet your premises and deductions are JUS
titled by the reports. The 1882 tons
embrace 436 tons carried over. This guam
tity OF 4,306 tons represented the amount
on hand when the annual report was made
up and included one weeks product Of the
succeeding year and is part Of the 1882
tons. The same explanation will apply to
preceding years. In short, you have really
counted 436 tons twice. The report should
have shown the amount on hand Oct. l to
be 1870 tons, but as M weeks product
was added, the amount appears 4,30e tons.
For instance. the following figures taken
from the books will make the proposition
clear:
Tons.
Bal. base bullion on hand Oct. 1. 1s77.... 2,727
Product from Oct. /. 1877. to Oct. l, 1878 16,342
10, os9
Refined during the year per report. ISL 1879
-
naIapoa m b.,a nnk 4 1O-o o o7a
Product of first week In Oct, 78..........43 6
Bal. on hand Oct. 9. 1878. as per report. A aO6
/ hold that the management OF the COM
pany in the right Of justice and fair deal
ing, is entitled to this explanation. II it
were necessary to pursue the explanation
further a transcript OF the books would
verify the statement.
Again, the article directs attention to
the sales Of lead. You assume that the
lead produced from the bullion. as we'll as
the gold and silver, has been sold. The
facts in this respect may be explicitly
stated as follows:
When there was a market for lead, 1t
was sold the same as gold and silver and
credited to the bullion account. When the
market would not take lead it was put in
store, and thereafter, when sold, was cred
tied ''sales lead" Therefore, your assump-
ton that the 10, 81s, 669 pounds OF refined
lead sold was derived from the 6,919 tons
Of bullion is erroneous; that lead formed
the accumulations Of q long anterior period.
In reference to the innumerable small ex-
penses mentioned in the article, the reports
certainly show that the money wal ex-
pended in the proper conduct and manage
ment Of the business Of the corporation.
Moreover, the books do show that there
has been an average gain rather than o loss
in the quantity OF bullion refined.
The product Of the mine, the product of
the furnaces, and the amount received
from purchasers of refined bullion, are all
clearly entered on the books OF the COM
pany, and il at any time a properly accred-
tied representative Of the Mining Record
should desire to examine these books, every
convenience in this respect will be accord
ed to him. The books Of the Eureka Con-
solidated are now, and always have been,
accessible to shareholders. Nothing what
ever is concealed. 1t has been regarded
as not only a duty, but q pleasure to i'm
part to each inquiring shareholder all the
facts about the financial condition Of the
company. Realizing that your comments
the management were inspired by good
motives, and knowing that your paper is
read by many shareholders OF the company,
/ ask that you will have the kindness to
give this contribution q place In the col
umns Of your journal.
W. W. TRAYLoR,
Secretarv Eureka Con, M. Co,