The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1897-08-07
John Cudahy at the Head of n Cor
poration Which Expects to Real
ize at Least $4,000, 900.
PACIFIC COAST CAPITALISTS
PREPARING TO WORK TWEN-
TY CLAIMS IN THE KLONDIkE.
Every Good Thing Within $50 Miles of
Dawson City GObbIed by ProsDec-
tOrs-Miners Frozen to Death.

CHICAGO, Aug. 6.-John Cudahy is at
the head OF d corporation to be capitalized
at $zo,CJO,OUO, which is to own and develop
nearly all the gold quartz mines in eastern
Alaska which have been discovered up to
this time. The corporation will own prop
eftleS the present value of which at the
lowest estimate is $45, OOO, 900. The prospec-
tive value is several times that amount.
The organization is an outgroWth of the
North American TRANSPORTATION and Trad
ing Company. which was incorporated five
years ago under the laws of Illinois with
a capital stock of $45O,01 q 1t had two OBJ
JectS-doing business as a common carrier
ana selling merchandise, and also prospect-
ing for minerals. John Cudahy is the larg-
est individual stockholder, and is under
stood to control a majority of shares. He
has personally directed all the matters per-
talning to mining. The company has pros
pected the mountains of eastern Alaska
Tor hVe years, employing the best experts
who could be induced to go into that region.
rms prospecting has been carried on sys-
tematically in the high regions sIoping to-
ward the Klondike placers. While it has
peen limited that good veins had been found.
an approximate statement of their value
Is now made public for the first time. The
rIclheSS OF the placer diggings points to
enormous values in the veins above them.
At the first preliminary meeting of the
new mining company last night at the
Auditorium Annex it was decided to in
corporate either under the laws of New
Jersey, Colorado or Montana. Incornora-
ton in West Virginia, which was desired
is impossible, as So, 900 is the maximum
capitalization permitted by that states
statutes (u6a h we ctoIy o. ono - 80
that limit. To incorporate in Illinois would
require a fee of $25,O 900. Hence another
State will be selected.
I really do not like to say how much I
think the mines worth" remarked Mr.
Cudahy, the king of the Klondike." after
some elaboration. Il would rather talk
about what the prospect holes actually
show. AS 1 stated yesterday, our experts.
who prospected five years, selected and
TOOK up thirty claims out of several hum
dred. There is not a poor claim nor an
ordinarily good claim in the whole lot
with a whole empire to select from thew
chose only the best. Based on what twelve
prospect holes in every claim turned ont
there's no guess work there; it is like a
sample or wheat showing the quality of the
WHole pag-our experts declare that the
lowest we Will take out of any one mine is
$LWV,0U0. The highest will be not less than
Sz'uW,OO; not because the ground is richer.
put because there is more of it. Taking
the entire thirty mines they will average
$I5W,OO9, making $40, 900, 900 for the proper
Ties. IhlS Is a most conservative esIimate
Now, as to the very rich nuggets that have
peen tound, 1t seems only reasonable that
there should be some fabulous spots in
our dlgglngs as well as in others. One mans
proposition. But | am satisfied with what
L know we are going to take out"
m JOhn Of q 4Sa Y ,d is The pioneer hydraulic
his company $l00, 900 to bring in a supply
Of water to wash the gold from the dirt,
put y the fi9n Investment is expected to pay
mines nj n "'S worth nora at R least h3 Is. o o5I Go. wifi If
s6ove carried lea on, not with pick and
such as comes from the nozzles of an or
binary fire hose, only three or four times
getting out the gold from the group of
claims on Miller creek in the southwest
corner of the Klondike district. When ali
Oh the claims have been worked out the
company will sell water to the owners of
other claims. Work on the claims owned
elsewhere by Cudahy's company will be de-
ferred until a supply of men who are will
ing to work for wages get into Alaskan
country.
Mr.. Cudahy's prospectors, two years ago
discovered a lake in the mountains, five
miles south of the point on Miller creek
where the claims were taken up, which will
furnish a practically ineXhauStible supplV
of water. Last year a hume three feet deep.
three feet wide at the top and two feet at
the bottom, was cut through solid rock
from the lake to a point half a mile from
the placer beds. From the lower end of
the tlume to the mines the water will be
conducted through six-inch cast-iron pipe.
The pipe was sent up last fall.
MY only anxiety" said Mr.. Cudahy, sis
over a fear that possibly our men laying
pipe have quit she job and rushe into
the pIacers before it was finished. l will
probably know by the next steamer if we
will be ready to begin sluicing as soon as
the first thaw comes. If, as l suspect. the
laying of the pipe was not completed, we
will be delayed a few weeks after the sea-
son opens. The expense of working placers
by hydraulics is probably one-fifth of the
cost of labor with pick and shovel at the
ordinary wages of SO a day. Based on
the price of labor at this time, even if it
were toabe had, the cost of ~sluicing is about
one-twentieth. And we will be able to get
out the gold so much the faster. l should
say we have enough water to do the work
of 100 men using pick and shovel. After
we have exhausted our own mines, there
will be no trouble about disposing of the
water supply to other placers at profitable
rates. That t1ume is a fine investment re-
gardlesS of our own gold" q,