New-York tribune., 1900-12-09
rHE INDEPENDENCE MINE.
It'll TEXT OF JOHN HAYS HAMMoND's
NOW FAMOUS REPORT

r-verv one in America knows Of the wonder
sr1 independence mine, az Cripple Greek, Col,
.,bicb W. s. stratton then prospecting miner.
-, 4. carpenrer by trade. discovered in July OF
1901 II brought stratton into prominence. and
=, hound carried him from the dim twilight
- poverty into me broad sunlight OF colossal
v-salth Ur3ike most mine discoverers, stratton
held onto and developed his property. He thus
sp,ove2 q larger part OF the great mineral
realtl which he discovered than has been the
usua, fortune OF the original locators Of the
sreat mines OF the West. stratton devoted his
s.terrion 10 his discovery. and soon developed
mine that attracted attention the world over II
hecame as well known II London as in Colorado.
with the result that early in 1899 company
vas formed in the British capital TO take over
stratton's Independence mine. The capitaliza-
non OF this company was fl,l00OOO, or So,ooO'-
OnO in Il shares. The shares. however, were
placed at Sl2 30 apiece. Outside OF the 1OO'Ooo
q shares sold W S Stratton held the entire
balance. The English company, however. had
AZ option on Stratton's holdings al e, or $40. a
share. OF SlOOOOOOO for the mine. This option
they took up paying Stratton in cash STRAIT
ton sold the entire property, lock, stock and par
rel ana retired from further interest in or man
areuent OF the independence mine. In addition
10 the cash received from the English company
stratton himself had taken from the lnoepen-
dence s., 100000 in profit before he disposed OF
the mine Thus in eight years the unknown
carpenter OF 1891. through lucky discovery,
became the millionaire Of 1929, known the world
over.
From the time the English company secured
control Of the Independence Up TO october last
the mine paid TO the stockholders S2''ooVoo
ana under the stimulus OF these great DIVIDENDS
and the glowing reports OF the mines engineers
the shares rose 70 IS on the market
Al this juncture the Venture Corporation llie
,-Iv,o,srs OF the mine. found themselves In
need OF money. When they bought OUT straI'oh
much OF the money used was obtained from the
London banks. and the obligations then in
CURED were approaching maturity. The Vent
IRE Corporation thereupon offered options on
large number Of the shares OF the independence
Mine 10 certain prominent London bankers al
f3 a share. TO provide this needed money AT
that time the company supposed, from the re-
ports Of its engineers, that il had Sl3OOOOOo
worth OF ore in sight, and that the bottom OF
the shaft was stin in good ore These shares
the bankers agreed TO take over al t3 II John
Hays Hammond. the great mining authority,
would examine the mine and make favorable
report upon IL. Mr. Hammond knew nothing OF
the Independence Mine personally. It has late
ly been enormously stated that he had hand
in its sale 10 the English company. This is not
Mr.. Hammond was not even IN England
when the Independence was sold. being al that
time in South Africa, and had not seen the
mine. The Independence people thereupon sent
Mr.. Hammond out TO examine the mine.
The preliminary examination was made in oc-
tober last AS result Mr.. Hammond cabIed 10
the company that the ore reserves had heen
greatly overestimated- The report came as a
bombshen, and a panic ensued, during which
the shares fell TO fl The papers have been full
of II, and garbled accounts Of what had oc-
Cured have been recently published right and
left. John Hays Hammond is Just now IN the
city, staying at the waldorf-Astoria, and when
seen there yesterday he made the following
statement:
amer had cabled the company that as a re-
suit OF my preliminary examination was salts
ned that the ore reserves had been greatly over
estimated. followed this preliminary examine
uon by thorough samplng Of the propertv
report 10 the English company:
~. cs.,- Denver, Col, November 2s. 1900
Independence. limited, London Engla1S ai'0n
Gentlemen; cabled you on the 23d inst the
eedngy dcGt to arrive al oG an pIpPf65 y is
% ne present ore reserves on account Of the lack
several months, but. the result OF an extensive
eject thar there are ove the nnih eye yu d6vss 10 ths
ifye! i o. ne nine1 about one hundred and twenty
ana from which a net yield OF 100000 will be
Of ihe mine % on S1ss oe IS osseo s 1s On The con e9indpa
about one year 70 extract this ore The accompany
from W6icb tbe b1ll o. ne ore Sas ba Eeils
occur o'e ciiielS
FROM these sections il VIII be seen that there
remains a large extent Of unstoped ground, but
is not peya BE as is indicated bv nv estiSate ~
the ore reserves. Mining operations have been
nned 10 OF about thirty acres in the north
western portion OF the property. This area lies
Eiyn15 ne recognized mineral belt within which
ne Portland and other large producing mines are
The richness Of this area is attested BY the gross
WELD OF S go extracted within depth OF 900
proved 5v R i6e ef fhat sbot g per @ cent @ Of ths
gross yield Is estimated 70 have been profit The
large profits made by the Portland Gold Mining
company. whose property acjoins yours on ne
IN the sndesete-breccia and granite. IN addition
70 this area, your property lneluoes elghty acres
situated almost entirely OUTSIDE the Iecognl1ea g
mineral zone above referred 10. The exploration
nus tar on your property ana On thsH o. ne ne e
istence o. belt OF payable ore passing into the
seelon embraced within the remaining elsnos 6aar
&pi,3faIens N thls reglon nave, a,cS LoNSrsl, 81
1olally inadequate 10 otsproye the oecur~IenGe ~ o.
PAYABLE ore bodies within the territory ~ queslot
ht unworked tract hes anosL sl'I,,S-s toS nresII
lne granite area, and unJil recently sloAs pLeJo.
against granite as an ore bearing country rock
ne results OF recent Developments IN Ihe ~
fascy OF this theory inasmuch sorae Of the i'm
klaht proGucins mnes now IN oPeI.SSi oPeS 5-s
sIc Of more Than academic interest since & Ihe - IN
property, both lateraIly and IN depth, VIII cepeho
Gpon the discovery OF payable ore booles occurring
TO predict the existence Of payable ore IN deposits
W ms nature geological data alone IS nol 49,
sfec, Of toioe;c5I oS8,tions On ore deoositions
N the Cripple Creek District lead 10 believe thAt
country rock is per Sc az Unfavorable geological
.sature Moreover. the occurrence OF pay sLOOS
Nllha the granite Is proved il the lndepenlenee
Nine itself though confined 70 that portion of @ me
ne area situated within me ree9gi1 @ e, = can
sSS previously referred 10. rom th4s -SSf - 80,
~ e tnfcrred. h0wevec. that tne gr1nlr atrs a5rs