The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1889-03-26
BRIGHTER OUTLOOK
The Horn Silver People Pleased
With the New Management.
CHANGES THAT HAVE BEEN MADE.
The Nine Now Actually Earning an Honest
Observation-Disclosures From the Presi-
dents Late Report.

Inc present management Oh tue HUH
Silver mine gives most eminent satisfaction
to the eastern stockholders. Allen O.
Washington, president, recently issued
report, from which we condense the follow
ing. The NINE though not bonanza, has
some ore, and is actually earning an honest
dividend, while it has the very respectable
amount of S13l 900 in cash on hand, with
which to make exploration. The future OF
the property depends on what may yet be
found, and not on the profits which may be
made from clearing up the old bonanza; II
is, therefore, in the highest degree desirable
that exploration be prosecuted energeu-
cally. but not blindly. Possibly the advice
of some experienced mining expert, such
as Prof. J. E. Clayton, who as so successful
in finding the continuation of the Drum
lummon ore body, might render this explor-
alton work more economical and productive.
It should certainly be the policy of the
directors of the company to maintain good
reserve fund with which TO carry on this
important work, and not accede to the
natural desire of stockholders to divide all
the earnings in dividends.
Every mining engineer knows how much
money is wasted
IN BLIND OR INJUDICIOUs EXPLORATIONS
underground, and we may safely assert that
no such examination as can be made ''be
tween the time of the arrival of the train
in the morning and its departure in the
afternoon" as stated in the superintend-
ent's report, is of the least use; in fact,
such an inspection is pure waste of money
and may lead to much more harm than
good.
The following extracts from the report
will place the essential facts on record:
s.rrha president and hoard of directors
herewith respectfully submit their annual
report for the year ending December 81,
1885
On assuming control of the company,
which was the result of the election held at
Frisco, Utah, October ,, 1888, our first
effort was to acquire such information re
garding the financial condition of the com
pany and the physical aspect of the mine
as would enable US to determine on policy
that would cOnduce to the best interest of
all concerned.
Notwithstanding the company had ceased
declaring dividends in 1884, there had, ap-
parently been no desire or endeavOr on the
part of the former management to retrench
or decrease expenses except in one single
instance. The secretary, who, up to October
81, 1887, had been receiving s., 900 per an
num- was at that time retired, and the
duties of his office were combined with
those of the assistant treasurer; but IL was
after minority representation had been
secured in the board of direction, as during
the period from 1884 to October, 1883, when
the present management took charge, the
manager in Utah had been drawing a salary
of 81, 900 per annum, and the subOrdlnates
in the Office at Salt Lake and at Frisco in
like proportion, making a total yearly eX-
penditure in that direction of over so, 600 in
Utah alone.
The New York Office was run on
THE SANE HGH-PREssURE PRINCIPLE.
For the year 1884. the rents, salaries and
clerk hire were 81 1861: 1885. so, 5f5.03;
1886, Sl2,650.SS; 1887, SlS,635.O2: 1888,
S414992 1.-THE decrease for 1885 being
caused by retirement of Secretary) We
also found that all the officers were APP
pointed for the year terminating December
81, 1885, and consequently we were legally
bound to retain them until that date, but on
the expiration of the term named an entire
change was made.
BY and with the advice of the three resi-
dent directors in Utah. the services Of Mr..
p. T. Farnsworth, of that territory, gen
tleman who is thoroughly competent and
experienced in mining matters, were secured
at a salary of $4,000 per annum, and that,
combined with other reductions, has de
creased the yearly expenses for the future
in Utah about $4,000
In New York an Office which answers all
purposes has been rented for 800 per an
nun, and a secretary appointed at the rate
of 81 900, making total of 81 400 for rent
and salaries, and it IS the opinion of your
board that the interests of the company
will be equally as well served.
In regard to the minority representation
before named, we consider it proper here to
state that for the year 1857,
THE MINE WAS RUN AT A LOSS
of g, 26S.62, while for the year 1SSS, when
the minority was represented. there was a
profit of So, COS 80, and we consider said
favorable showing to be due entirely to said
minority representation and now that we
have sole charge, we have every reason to
believe that for the current year the show
ing will be still more favorable, as the
months of January and February together
give profit of $4,000.
The items, accounts due company con
sist of various amounts (belng principal
and INTEREST," which appear on the books of
the company as call loans and were made
by former officers of the company without
authority of the board of directors at diff
ferent times between September 20, 1881,
and June s, 1885.
On December 81, 1885, the several ac-
counts stood as follows: No. l, s., :24S.5S;
No. =, S5O397; No. 3, 81 1865; No. 4,
$3,765.0S; No. 5, $3,9O6OS; No. 6, S316,625.64;
total, 1898, 1850.
For items Nos. and2 the company have
no collaterals. For items Nos. 3, +, ) the
collaterals are of doubtful value. Item No.
& was originally for a larger sum, and at the
dates the loans were made and up to Jan
uary Is, 1887, the company had no security
whatever but at that time an assignment
of certain mining properties In Nevada was
given to the company as security.
On or about November %, 1887, $4,000 IN
cash was paid on account of said loans, and
certain mining properties in Idaho with
three notes aggregating $4,000, which by
their conditions formed lien on certain
lands in Kentucky, were
TURNED OVER TO THE COMPANY
. as additional security. Two Of the notes,
amounting to S45, 900, were payable Novem-
Der 3 1888, and the remaining one, Ter
$35, 900, is payable November 2, 1889. The
two due on November 2, 1888, were not paid
at maturity, but the security is considered
ample, and steps are being taken to enforce
payment
The Idaho property was sold on August
10, 1883, for So, 900, $4,000 being paid IN
cash, and the balance (S45, 0O0) was to be
paid on the first day of January, 1889, the
deed in the meantime, to be held in escrow
by Messrs. Wells, Fargo & Co. until such
payment was made. On the date named
the amount was paid, the deed delivered
and the money recovered in the treasury of
the company.
In regard to the Nevada property, it is
believed to be valuable, but nothing certain
is known. The directors are trying to
realize on it, but thus far without success.
Suits. however, have been instituted, and