The diamond drill. (Crystal Falls, Iron County, Mich.) 1887-1996, 1894-08-25
THE CHAPLIN MINE.
Trustees Rspor, Of the Chaplin Iron Mining
Compsny.

Trustee Flanagan, under date OF
last Tuesday, h,tsissued "a circular to
holders Of sccond-class bonds giving
some facts and figures regarding
the Chaplin Mining company, which
will prove Of general interest Mr. Elan
nigan gives the history of his trust from
the time the company suspended opera
tions. Aug. II, 1898, 60 date. After
rcctine the many difficulties he encount-
ercd and oyercame in his endeavors to
secure funds TO keep the mine free from
water and in good repair, the trustee
says:
"The affairs OF the concern were so
continued along until about the first ot
| May, 1891, when tile trustee monies re-
ceived up 10 that date being exhausted,
the alternate nf mining and shipping ore
without profit, or the suspension oi
pumping operations, resulting IN the
probable ruin OF the mine and certain
! damage to, If not destruction ui much oi
| It's mining plant, machinery and appl-
ances. | choose the former. Short oi
obtaining advances on the ore ns the
Sumo was mined, the company could not
resume mining OF pumping operations.
| Nav 2nd, of this wear, | contracted with
NJ A. IIannn * Company Tor shipment
To them of all ore mined during the pres
ont season, for sale on my account M
trustee, they agreeing to guarantee col
lections, advance the cost of mining,
shipping and marketing, and, alter
deducting such advances, interest there
on, and sellers commission oi iiiteen
cents per ton tbcing the usual rate where
collection of selling price Is guarantccd),
lapply the balance i'm payment oI the roy
laItics ctipulntcd Tor ia the lease, and,
should any portion oi the proceeds still
rctnnin 60 remit the same to me Tor the
benefit uf the holders of the bonds. Upon
the execution of this contract the com
pany resumed mining operations ana IN
lnnd about the same IL has and Is em-
ploying and using the machinery, tools,
implements and supplies covered by the
mortgage, as by the terms of the mort
gage il has right TO do, but is keeping
tile same i'm good Iepair and is replacing
such tools, implements and supplies ~
are wholly used or destroyed
lt has so far mined and shipped during
the present season about ll3,OOO tons,
and the same, or the major portion
thereof. has been sold, but nt price so
low as TO preclude realizing thercirom
any sum for the bond holders.
Mr.. Chnpin, the lessor of the mine, IN
respect TO the ore mined during the pres
ent season, has not insisted on hls roy
ally lien. and has consented that the ore
I. might be shipped and the proceeds mp.
plied first i'm payment of all labor and
other charges connected with production
land sale, and then, as far as what re
manned might extend, in payment oi his
lroyalty, but rcscrving his remedy against
the mining company Tor any deficiency
by suit or forfeiture oi the lense, or both
: M lao might see lr For royalty du,
Luly 10Th, last, and still unpaid, Mr
Chnpn may now legally forfeit the min
inp lcnsc ON sixty days notice.
Because OF the companys default
/. have exercised The option vested in m'
to declare the whole amount of prncipa
ond interest az the bonds outstanding
due and payable. and | today commenc'
i nrocccdings for foreclosure oi themort
expect that decrcee will bc entere,
in the foreclosure suit ON the 4th day q
!, sentemhcr next, or about that day, nn'
il snle ul the property ordered Az th
earliest day permissible (which should
e about October 10th neNtl, SHAH causs
to he made Il sale oi the company
+ propcrty including It's lcasc oi the Chapl
mine, machinery, mining pant, nulidihg'
TOOLS. implements, supplies, dydrnull
: stock. and in short, all OF the propcrt
n covered by the mortgage, excepting rci
estate. which cannot be sold until yea
hence. and apply the proceeds alter d'
T.. ductinr allowances for fees, services nm
expenses. solar az the same shall extend
ia nnvmcnt ol the bonds IN the ord,
directed hy the mortgage, unless INA
!, iority in interest ui the holders oi u
VI. bonds now outstanding, signify the
desire that the sale be further delayed ,
that some other course be pursued
Mruslee Flnnnigan further states
N. his circular that NJ. A. Hanna x Cor
pany have already notified him th'
they will not continue the present n
:, ranpcment for advances after the clio
r. OF navigation this year. This means
crisis in the affairs OF the Chnpin Mini
!. company. The bond holders must cor
= 1, the front with the necessary funds
keep the property active and in good
pair, or let the foreclosure proceed nj
y realize what they can from the sale.
There il nothing in the procccdiu
~ over which the people OF Iron Mounta
i. should feel nccdlcssly alarmed. II Is G
. p tnin that the bond holders, under
- circumstances, will decline 10 furnish
funds TO keep the property active,
= even In repair, and the trustee will
l. permitted Co proceed with the sale. ~
sale will give the purchasers, whoe'
S. they may be, clear title To- the proper
T" - and this will be followed by the orgnni
ton OF Ia strong company for it's opc
ton. The Rangc-Tribunc looks Tor
u suspension Of work at the Chaplin.
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