Eureka daily sentinel. [volume] (Eureka, Nev.) 1871-1887, 1881-09-11
con. mANAermENr.
frank Robbins Endorses It tn q
Letter 60 The New York Mining

Frank Robbins Endorses It tn n
Record.
The subjoined letter. written by Frank
Robbins, Superintendent OF the Kit Car
son mine. appears in the New York Min
ing Record of Sept. 8:
EUREKA, New, Aug. %. 1881.
EDITOR MINING RECORD: l have read
the late editorials in your valuable jour
nal concerning the direction OF the affairs
OF the Eureka Consolidated Mining Com
pany, and feeling that you can but desire
to use the powerful influence OF the
Record only for the advancement OF legi-
innate mining, l take Upon myself the
liberty Of telling you that we, here, feel
great regret at the position you have taken.
OF course, we are not able to judge the
situation from an Eastern standpoint, but
looking at the management from our own
point OF observation, and l may say, be-
ing in almost daily communication with
that management and knowing its methods,
we must say and feel that it is doing every
thing for the advancement Of the mine
and the interest Of its stockholders.
One complaint is that the dividends are
not as large as the output Of the mine will
warrant. You remember the dividends OF
certain well known Colorado properties
which exhausted the reserves to pay them
and left no funds for prospecting.
The Eureka Con. paid immense profits
from its immense ore bodies, but at the
same time a prudent management laid
aside a largo amount for future use. An
amount sufficiently large to sink a deep,
treble compartment shaft and procure
machinery TO hoist therefrom and clear
the mine Of the water which would event
ually have necessitated assessments upon
the stock to do the very work which is now
being done and being paid for.
The dry levels would have been ex-
hausted Of ore, and the mine ruined; nor
would the shareholders who had been en-
riched by the dividends have been willing
to pay the large assessments required to
sink this shaft, put up machinery and
then prospect. No! But now the mine
continues to pay reasonable dividends,
while the prospecting for bodies Of ore
(Which it is only natural to suppose are
still to be found in this wonderful property,
as they are being found all about i) still
goes on. expensive machinery being at the
same time erected; and all from the re-
sources Of the mine and not from the
pOCkttb VI tuo buhrtlOluttbs
Had the management been disloyal to
its trust. would it not have been the easiest
thing in the world to declare several three,
four or five dollar dividends? The mine
could do 1t, thereby gaining a large bonus
on the stock, which. under the influence
OF the same would rise to double or treble
its present value and allow the manage
ment to throw its stock upon an inflated
market and leave the purchasers the alter
native Of paying assessments to reopen
the property, or lose everything, almost, by
sacrificing their stock.
The next point of attack is the Damages
against the Richmond. These will either
be settled By suit or compromise. II tho
Eureka Company can settle with the Rich
mond at any reasonable figure, is 1t not far
better to do so than to stand the cost and
delay Of a long case of law? You may rest
assured, however, that if it be a coppro-
mise, the only concession will be the cost
of the suit with the interest on the amount
claimed for the time it would require to
try the case; and, in my humble opinion,
the Richmond does not expect much bet
ter terms. In conclusion, let me say that
the local management does not include a
dozen sinecures, nor are there taxes to pay
mills owned by rings, as is the case in
sections which / need not name.
In writing this / am in q measure inter-
ested.
Eureka is a district which has received
little outside aid, and which has always
borne a reputation for legitimate and hon.
est mining.
Capital is beginning to seek investment
in our smaller properties. with the hope of
making them large ones. The owners OF
these smaller properties can point with
honest pride to the Eureka Con. and say,
4" our mines with such management and
4 little assistance will prove as good invest
ments." Will not the course Of the Re-
cord unconsciously injure them and the
district2 Holding that you will not con-
slider me presumptuous for criticising what
you have already said. but understand that
this 10 an honest appeal, not for the Eu-
reka Con. SO much as for the district.
FRANK ROBBINS.