Los Angeles daily herald., 1888-03-22
ms,,,.~ ores.

to be revolution in the management
of the Comstock Mines, and the
mining and milling of their ores'
based upon the report that the stock
holders of the Consolidated Virginia
and California Mines will demand OF
Mr.. Mackay and his associates the
permanent transfer of one OF the
Bonanza mills for their personal use
and benefit. In commenting upon
this possible change in mining affairs
the Salt Lake Tribune tells how the
monopoly OF the milling was brought
about:
When the Comstock was discovered
the knowledge of reducing silver ores
| was very limited in the United States.
Mining and milling machinery was
both crude and costly. and so after
| the first rich groupings OF the Com
stock we're worked off almost every
mine on the great lode and all the
mills were badly in debt. A great
deal of machinery erected at great
cost was found to be practically
worthless, and matters wore a very
dismal aspect when VIM. Sharon put
| in his appearance in Virginia City. He
| looked around q few days and then
wrote to W. G. Ralston that he wanted
to start bank, that there was an en-
pire to capture in the desert.
RaIston wrote him to come
down and we will talk it
over" The result was that Sharon
returned to Virginia City and estab.
lished the branch of the California
Bank, which is there still. AT that
time money commanded five per cent
per month; the little banks which
had previously been established there
had not the money to carry the needed
business on, and the mill men espec'
tally, we're apparently hopelessly in
volved. Sharon reduced the interest
at once to a living rate; took up the
accounts of men at the other banks
and started the camp, which was
dead, into life. But in year he had
loaned nearly $500, 900, and D. o.
Mills, one of the chief directors of
the parent bank in San Francisco,
called for a meeting of the Directors,
and in that meeting insisted that the
crazy work which had been going on
in Washoe should stop, that 80 much
as possible of the money of the bank
loaned out in the desert should be
called in, that the rest should be
treated as lost, and that henceforth
legitimate banking business should
be carried on. To this Sharon re-
piled that if he could be given
another year he would show no loss,
but tremendous gain for the bank.
Ralston stood by Sharon. As a
last shot, Mills referred to
the old quartz-mills which it was
shown he had loaned money upon
and been forced to take as the only
security for what they owed to the
bank. To this, Sharon replied that
he was willing to take those mills at
what thev had cost Accordingly they
were turned over to him, and he and
Ralston organized the Union Milling
Company. 1t used to be whispered
that the mills were bigger bonanza
than the mines, as a great deal
OF ore that was reduced only barely
paid the expenses of milling. Any
way, Sharon and Ralston did moi
seem to be losing money through
milling Comstock ores. Since then
the mining and milling of Com stock
ores have been conducted under the
direction of distinct companies.
Like most other enterprises which
brains and capital have fostered and
developed with honest purpose-with
an unselfsh desire to promote indus
try and sectional development, so far
as personal reward can be divorced
from private enterprises-the Union
mills of the Comstock became, in
time, a monopoly controlled by and
enriching few capitalists at the ex
pense OF the many small holders o.
stock. The action of these stockhold
ers in demanding that the output O
the mines, of which they are in par
owners, should be milled by machin
cry belonging to themselves, is move
in the right direction. 1t is true tha
that for many years the charge fol
milling ores has been reduced to lit
tie more than actual cost, but the
mine owners claimed as theirs all the
tailings from the mills. In working
over the tailings, five to seven dollar
ton was obtained on, say five hun
dred tons day, or $1,000 each day
A million dollars year might easily
be cleaned up by mill company un
der this rule, which, under the pro
posed new arrangement, would go t.
the stockholders of the mines.
EXHAUSTIVE panyaSsiDp in savara