The Helena independent. [volume] (Helena, Mont.) 1875-1943, 1892-12-13
MONEY FOR THE MONTANA
Shareholders in the Extensive Ma
rysyille Enterprise Agree to
Reconstruction.
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Interesting Statement From r. T.
Bayliss on the Future of
the Mine.
Had II Not Been for the Fire In the
Spring nm Assessment Would Not
BE Necessary.

he Necessary.
Al the meeting of the Montana COMPANY,
limited (the Drum Lummon), held in Lon
don Nov. %. the Reconstruction plan of the
directors carried unanimously. The Min
ing World and Engineering Record of Lon
don, in an article on the subject, ~Justities
the reconstruction plan in the following
language:
..Here is a nina that has paid its share
holders within a comparatively few years
about half a million sterling in dividends.
It is cut off by fire and flood from its chief
workings; ita development works for the
time ara comparatively poor, and a Lawsuits
strains its resources. Is & mine like the
Montana to be abandoned in such a case az
this? IL it were it would indeed indicate
the s.perilous state of mind to which MIR.
R. 7. Beyliss referred, and would be the
most cowardly mining act that the whole
history of joint stock enterprise
affords. There may be differences OF
opinion as to details. but in this
meeting there was none rs to the general
desirability of reconstruction; but 1T must
be on such q basis rs to provide for all COLI
tingencies. The scheme of the board does
SO. 1t mulcts the shareholders in q posi-
BILE two skiilings six pence per share, as Sc
curity for which they have. as Mr.. Bayliss
reminded them. the Montana, the Blue
Bird and the Hickey mines, 100000 tons of
ore in sight. the prospect of a large return
from UNEMPLOYED portions OF the mine, both
laterally and in depth; the mill. machinery
ard .1ork xuhYoh oIona Raak IoOn ONO and
the unworked tailings. estimated by Mr..
Robinson to be worth $4,000. That is
what shareholders will gain by joining the
shareholders reconstruction, and 1t is also
Gas Mr.. Bayliss tersely put IT'D what they
will lose if they do not. Such. in brief. is
the case for a Montana reconstruction. and
il seems to US to be unassailable by sound
argument or fair criticism"
r.. T.. Bayliss was present at the meeting,
and in an address advocating the recon
struction plan, said:
/ hope to convince you that the policy of
reconstruction is not only a necessity, If the
existence of this company is to be main
tanned, but that it is essential for the per-
Bonal interest of every shareholder. j am
prepared TO be met with the retort that as
some of my expectations in past days have
not been fulfilled. l cannot expect that full
weight will be accorded now to any fore
cast / may make as to the prospects before
MS. Be that as it may, ] wish you to under
stand clearly from the outset that no fear
of criticism of anything l have said to you
in the past will deter me from expressing
my candid opinion as to the present value,
and what / believe to be the prospects of
your property. The provision of further
capital by reconstruction has become neces-
sary for three reasons-hrst, for the proper
development of the mine; second, to dis
charge existing liabilities; and third, to
meet the cost of the st. Louis lawsuit. /
have sent several letters to the office
last week, of a statement | made
ut the meeting in March last,
which i will now read: II think you may
draw some comfort from the knowledge
that even in its darkest days the mine is
-self-supporting, and it is we'll prepared to
work out its own salvation, and that it is
not probable you will ever be called upon,
az 80 many shareholders under similar Or
cumstances have been called upon, to pro-
vide further capital for the exploration of
your mine by the issue of preference shares.
debentures, or by reconstruction, or other
wise.'' The mine would have worked out
its own salvation if it had not been for the
fire and floods of last spring, which not
only wrought great damage to the main
workings of the mine. but shut us ont from
the extraction of ore below the 400-foot
kONOAf L. A&oAt "a IVA
works in the lower leyels, and at other
points in the mines where good results
seemed probable and fairly within our
reach. 1t is for the purpose of repairing
this damage and continuing that explofa-
tory work that additional funds are now
required. and having regard to the past
produotiveness of the mine, to the large
area along the Drum Lummon lode, and
especially along the Empire vein extending
1000 feet in ground, which so far has not
been explored at all; and keeping in
view the probable results to be
obtained from the further de-
velopment of this tunexplored ground,
both laterally and in depth, it would seem
to me a very perilous condition of mind
that would permit a man to abandon such
prospects at a juncture like the present.
With regard to the probable results to be
obtained from this longitudinal develop
ment, / see no reason why this portion of
your property should not yield as good re-
suits as that already explored. 1t is per-
fectly true that in the lower levels of the
Drum Lummon mine the mineral contents
of the veins have not come up to our ex-
pectations; but even If the veins in this I'M
explored ground should not be productive
below the 400-foot level, they should yield
still net profits far in excess of the sum
you are now asked to subscribe. AS to the
probable results to be obtained from the
further development of the Drum Lummon
mine in depth, | can only give you my
opinion, based upon long and close obser-
walton of that lode, and formulated after
consultation with professional men whose
experience and ability are far greater than
my own, and beyond any question. In for
mulating that opinion. | attribute the i'm
poyerishment of the Drum Lammon
in depth, but for which you
would still have been receiving
large dividends, to the disturbance which
occurred in the structure of that lode
shortly below the 400-foot level and not to
any chemical conditions prevailing during
the period of naturalization, which would
render the existence of the precious metals
impossible below a given depth. We have
s%triyen, during the past five years, to get
below and beyond that disturbance, and |
do not think, from expressions l have heard,
that many of the shuteholders fully realize
what efforts have been made in that ditec-
zion. | have told you ON former occasions
shat in the LEO and 1.400-foot levels from
No. / shaft there Was evidence that we were
approaching the limit of that disturbance,
and IN the l 60O-foot level THE lowest), |
am informed, for | have not seen those
workings as they were full of water during
my recent visit, that the limit appears to
have haAD reached. that tba Inda hau tbara