The San Francisco call., 1895-11-14
ON TRACK OF COLO BARS.
The Identity Of 100000 Of Bull.
lion Wanted in the Hale
& Norcross Suit.
CURIOUS STORY OF W. S. JAMES.
John w. Mackay's Testimony Is New
Feature in the Great Min. {.
ing Suit.

The third hearing of the Hale & Norcross
suit developed some new and pointed testi-
mony on the part of the plaintiff. The ex-
animation of A. B. Thompson, secretary of
the Hale & Norcross Company, was con-
cluded. and the deposition of W. S. James.
assayer at Colo Hill, was read, and in part
the deposition of John w. Mackay. A
number of dusty bullion books and
other exhibits used at the first trial
of the case were found, after not
little search, in the vaults of the County
Treasurer, they having been taken there
from the vault in court. Mr.. Baggett
knocked the dust off exhibit No. rs, called
the bullion book, and handed it to Mr..
Thompson. The book began with Feb
ruary 1, 1874, and the first ten pages were
written bv the witness, and only to such
part of this record was he permitted yes
terday to testify. He said that during the
period of eight years, from 1866 to 1874,
Hale & Norcross received $9S, POI so in ex-
cess of the 65 per cent OF wagon sample
ASSAYS of the 900 tons of ore worked.
The bullion-book for the four months be-
ginning February 1, 1874, show the fol-
lowing:
February-1176 tons OF ore; assay $11 &c
gold, $40 "a silver; total essay $37 ,O56 60;
value al IS per cent, VA ,ooo ~ bullion, $26,-
COL 60; excess, S2514 81
March-l3SS tons of ore; assay S11 13 gold,
$50 % silver; total ASSAY, S43 ,o32 20; value at
90 per cent, $2S, SOL Al; pulllon, 9Zo,5oZ 70;
excess, $191 30.
Aprii-I5O1 tons of ore; assay Sc 65 gold,
$l4 70 silver: assay value, So, ,177 6S: value
at 65 per cent, $50 915 40; bullion, $24 574 50 !;
excess, 1868 "a.
May-1455 tons of ore; assay 81 IA gold,
$40 90 silver; assay value, $39, $50 "a; value at
80 per cent, $25, ,857 Is; bullion, $25 1858 50;
excess, 500 20.
not written by Mr.. Thompson, and he was
not permitted to testify as to theW.
On cross-examination by Mr.. Wood he
said the samples were taken by Mr.. Nor
row, and that there was no change in the
methods of taking samples. There were
at times twenty mills at work. Seven
mills showed an excess OF bullion over the
required Go per cent. he did not know as
to the excess at the other mills. The 300,-
900 tons of ore worked during the eight
years were only partially worked in the
seven mills giving an excess. This con-
cluded Mr.. Thompson's examination.
The position the plaintiff is trying to
establish is what would be justpercentage
for the 81, ,067 tons of ore worked from 1887
10 loJU, lOE WillCll 1Cbuiii VI u pCI CeIO
car ASSAYS was made. From 1866 to 1874
300 900 tons of ore produced 65A per cent
car ASSAYS, and in 1890 $50 tons produced
80 per cent car assays.
The very voluminous deposition of W.
S. James, assayer at Gold Hill, was then
read. This related to the second issue in the
suit-name1y, the damages arising from
the fraudulent melting of ores. The evil
dence thus far secured appears to indicate
that gold bars valued at $3O0,O00 have dis
appeared. The deposition set forth that
during the time the Hale g. Norcross ores
were being milled James shipped from
Gold Hill, through Wells, Fargo & Co..
large number of bars of bullion to T. r.
Hofer at Carson City. Hofer was the chief
clerk of the United States mint and cashier
of the Bullion and Exchange Bank, con-
trolled and partly owned by Evan Will
hams, superintendent of the Nevada and
Mexican mills, which milled the Hale 81
Norcross ores. These bars were stamped
with James name and theirvalue.
According to the testimony these bars
were deposited in the mint as unstamped
and unnumbered bars, and to the credit
of G. II. Peters, clerk in the Bullion and
Exchange Bank. Most of the proceeds of
the bars went to that bank. There were
eighty-eight of these bars, valued at about
$500, 600.
The examin alton of Mr.. James was long
and searching, and occupied about 80
typewriter pages. Mr.. James admitted
that he did sell 100000 in bullion to Joseph
NJ. Douglass in Virginia, New, and then
he was closely questioned as to his source
or sources of supply. He said he owned a
mine, but admitted it was not in opera
tion when this transaction occurred. He
said he purchased it from various persons,
from men who worked tailings who
brought small bars to him. He would
then melt these small bars and make
large one. He said he purchased at one
time as much as $23 900 from one man.
He had preserved no record or the memo
randums. He also bought old gold and
jewelry, which he melted up. Some of
the bars bought by him he had entered in
books, because he had partner in his
bullion dealings named Clarence Sharon.
All the details were closely inquired into
by Mr.. Baggett.
The deposition of John w. Mackay was
taken on October "a, 1885, and first opened
yesterday. He testified that he owned
one-thlrd interest in the Comstock Mill
and Mining Company, and was at one
rector OF the Hale & Norcross Silver Min
ing Company. Upon examining copy
of the thirteenth annual report of the
company, to which is appended an ore
table, he was asked as to the workings of the
ores previous to the year 1874, for the pur-
pose OF comparison with the ore involved
in the present suit and to refresh his mem
ory as to the percentage obtained from the
ores worked during the eight years ending
1874.
"This table shows an aggregate OF 65A
per cent for eight years" replied Mr..
Mackay.
'Do you know of what assay that 65A
per cent was2"
"At that early date it was wagon sample.
1t IS something like the car sample, but
more accurate. During the period men
toned the wagon samples of this ore were
always very slushy and wet, but this would
not affect the assay, although it made
difference when the number of tons were
figured. I could hardly figure on the
average difference during the eight years
preceding 1874. Sometimes it would be 25
per cent and sometimes 5; very wet, in
deed. We had great deal of trouble in
working the Hale 81 Norcross ore."
"But, as shown by this table, you did re-
turn 654 per cent of the wagon samples
for those eight years?"
THAT table must be correct. didn't
make it,
Mr.. Mackay said the ore averaged about
$330 rock. At that time the company was
working under verbal contract to return