The Seattle post-intelligencer. [volume] (Seattle, Wash. Terr. [Wash.]) 1888-1914, 1897-07-26

DD hts return TO Eossiand from CHI
cage. Jos@Ea L. Warner, former manager
OF TIE o. x nsEne. gave tie Miner an IL
tsrsfew, defending hts Hanaxenaea
against the ATTACKS made Sc If la that
PAPER Ia regard 20 the charge aaas be-
as.sstatea the amount u ere il slsn., hs
said.
II sszs been stated that stock haa been
SOLD on fay statement as 20 TIE amount OF
ore TIE mfEr had IN sight That il so,
and IN taa usual and proper manner IA
Offering stock for development Iae CAL
cttaAfi9tA were made upon interior groune,
blocked oat on three s!aes enabling the
Ne4uifss OF ground I'd be- estimated and
from the Results OF milling the ore from
shsse workings and tire smestss ship
fssntS ! computed. by methods always
adopted ~ mining -ngin-ers. TIE value os
tie reserve OF ore. These estimates were
considered cor. acs and believed 10 be 80
~ he ~ the time ard before We mined
TIE blocked cut ground. We wos.la most
certainly base accepted offers al Sss3 esg
cash and much higher figures "a bonds
had We not been satisfied With our yalua-
lions
x pom the sood results obtained from
the ore taken OUT Ia the course OF drift
ing on tie two levels and treated by the
small stamp mill, the construction of cur
present mil vas anaertakesi, and upoE
IT'S completion We attacked the blocked
cut xroina by Stopping ore from the lower
level along its full length. carrying TINS
work upward AZ We mined out this ore.
Much 70 our disappointment We en-
counfered change IN tie character Of
the unseen portion when W. had risen
short distance. IL became poorer in grade
and We were forced TO Miti ore much
mixed with vein matter. We constantly
expected this 10 change and were gov
eined by this hope in continuing mining
ia this portion Of our ground
lie goes on 10 tell how ae had diamond
dritl holes run and then started TO cross
cut 10 the north. estimating that III 100
10 loo feet further he would haze been
sH i"et under the largest surface crop
ping OF the main vein. the one worked be-
ing merely an on shoot He says the
earnings Of the company carried on this
dead work for the first few menths of
milling. as Well as the regular cost of
mining, and the auditors report for May
sno~et Hoai.se nef earnings. disregard
Ing this development work.
tie tells Row control of the stock was
placed at the bank to secure the COM
pany running account, under an ar
fanaemeni allowing six months for part
and ons year for the remainder He then
tells the following story of the change Of
management:
In May the president OF the company
became seriously Ill with typhoid fever
and when not expected 10 live the hank
asked II the company would nil up its
board of trustees. there being two
vacancies. Two shareholders owning a
considerable number of shares were
agreed upon as satisfactory. but two
Others, connected with the bank were
suddenly substituted. and now having
sen &.
tority. the board was convened the
same day az their appointment and. dis
regarding the written contract agreement
pertaining 10 the running account, uu-
deftook 20 make the company's indebf-
edness pressing By substitution OF de-
mand company notes The compapy's
secretary declined to tudorse such action
plainly designed to cripple the company.
and resigned as a protest I then re-
signed the vice presidency. Against the
best interests of the company. it, Office
was forthwith removed TO the hank
The effect was immediate on o. X stock
quotations.
The position 81 the trustees at pres
ent IS that they are running the AFFAIRS
OF ihe company without ratification OF
the shareholders. ard their acts tnd!-
cate they are not serving the company's
interests.
Il went East 10 endeavor to remedy
the situation, and have since my return
lied proposition with the secretary.
Offering ways and means OF quick pav-
fneut Of the enk's demands and a rem
edy for Che existing conditions. which
viii / think. be generally favored by
stockholders"
he CONCLUDES by saying that he resign
ca voluntarily ard not by request OF The
stockholders, and SAYS he and The nrast
dent never drew a salary.