The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1897-02-27

''It is reported that Mr.. Edward Bates
Dorsey has succeeded in placing with
an English syndicate an extensive
gold mining property in Utah, U. S. A.
which has 600 stamps now at work and
is earning large profits. The syndicate
is expected to offer the property to the
public shortly through company
formed with a capital of $10,OOO,0OO for
that purpose. Mr.. De Lamar of the
De Lamar Mining company is one of
the vendors and Mr.. Hammond is one
of the reporting experts"
The above is from the London Finan-
cial News of Feb. 5.
The property mentioned by the News
cannot be other than the Golden Gate
and the Mercur combined, and there
is every reason to believe that it was
owing to the failure to float the scheme
in London that caused De Lamar to
throw up his bond on the Mercur mine.
1t is pity that the truth, the whole
truth, is not known in connection with
the proposed sale of the Mercur by De
Lamar.
Ii it was, it is more than likely that
it would read something like the fol-
lowing:
The Mercur is a well-known pro-
Queer of gold ore; it is a regular divi-
dend payer and is more than. likely to
be for many years to come. A bond
is secured on the Mercur at 81 800, 900
and 1t is worth every cent of this,
and more, too. 1t is proposed to COM
bine the Mercur with the Golden Gate
and to put the latter property in at
So, 900, 900, making 81, 10000 TOR the con-
sondated mines. On this a company
is to be formed with a capitalization of
S1c,0OO,OOO and the scheme is to be
fioated in London, and as it is an en-
terprise of magnificent proportions with
two splendid mines embraced in the
holdings of the company. together with
the little railroad and the water sys-
TEN, there would be no trouble in float
ing the stock of the company on the
London market.
"A hitch occurs, however, and after
De Lamar's departure from Europe II
is decided that the enterprise is a risky
one from the fact that it has never
been satisfactorily demonstrated as
yet that the arsenical ores of
the Golden Gate mine can be
successfully treated by the cyanide or
any other process; and, on this ac-
count, the syndicate with whom Mr.
Edward Bates Dorsey has been nego-
tiating, has thrown up the sponge.
This fact is cabled to Captain De La
mar. who gracefully throws up the
option on the Mercur. but the Mercur
mine and the camp is given a black
eye by letting it become generally
known by inference that the bond was
given up because the ore in sight in
the mine would not justify the
payment of the amount named in the
bond; when. as a matter of fact, the
mine, if handled alone and unincum-
bered with the Golden Gate mine,
which is a non-producer in one sense
of the term, would have been greed
lily gobbled up at the price named"
1t is not fair to the Mercur mine to
let the impression get out that the
bond was allowed to lapse because it
was believed that the showing in the
property would not justify the pay
ment of the price asked, as there is
every reason to believe that had Cap
tain De Lamar's London people been
able to float the scheme the bond on
the Mercur would have been taken up
a week ago and no reference made as
to the amount of ore in sight in the
mine; but some plausible excuse had
to be given. and by implication it was
made to appear that the deal fell
because of the fact that the
Mercur mine was not up to the stand
ard. 1t is the prevailing opinion, how
ever, that the deal was swamped by
the Golden Gate as it was found that
it was an impossibHity to make a SIC
of the two properties together; at least,
until the Golden Gate is placed on
dividend-paying basis.