Daily inter mountain. [volume] (Butte, Mont.) 1881-1901, 1900-08-30
GOOD SHOWING
Of RECEIVER
F. ". BACURN'S REPORT OF AMER
IcAN DEVELOPMENT & MIN
ING COMPANY.
THE OPERATIONS HAVE
RESULTED IN PROFIT,
Reorganization Possible After Settle
ment of Suit in the Supreme
Court.

ment Of Suit in the Supreme
! Court.
F. W. Bacorn, receiver of the American
Developing q Mining company, has SUBJ
Inltt LED MS report Of the operation Of he
min es in which the is inter,,t-
ed The report covers the period from
Ma ch Il. 1898 to August /, 1900. The
properties OF the company at Gibbons
Vllle ,, daho, consist Of a group of nine
tte1l patented claims, equipped with a
wat ef power air compressor, a steam
power compressor plant, a 30-stamp mill
with chlorination works, all omplet
and that there was also a company store.
ms equipment, with buildings AMI an
pnItenances and the store probably cost
$lAa,o0O. The mines had been profitable
= We're developed by several miles Of
drifts and cross-cuts. Another group
81 mines. knoWn as the Bull OF the
Woods Group: three miles from Glib
DonsVllle. belonged to the company, and
consisted OF forty mining claims, pat
ented or since patented. This property
was undevelopeG.
All Whitehall, Montana, the mpa
owned the Golden Sunlight" group Of
mines, consisting of fourteen claims, pat
ented, with considerable surface ground.
n property was equipped with a steam
air compressor plant and a concentration.
The equipment probably cost s85, 900.
There was about 1000 feet of deyelon-
Ment work. In addition to the patented
ground mentioned, the ompany owned
thirty or forty unpatented claims.
Inc balance sheet of the on
March l: 1895. showed a total Indebted
ness Of $2S3, 554 So. There were no liens
except for taxes. The Golden Sunlight
mir es were not in operation. and were
reported to be not capable Of making a
profit. The Gibbensville mines had Of
late been Improbable and were then los
ing money at the rate Of about S., 900 per
month. There was little or no ore in
sight. Wages were due at Gibbonsville
to the amount of s6,314.oo, the property
mad been sold for taxes. insurance pre-
MUM had not been naid and heavy
damage suits were pending.
The court authorized an issue of so. 600
or receivers certificates; but the credit
ors declined to advance money on them;
and only after considerable difficulty
We're they negotiated at the Union Bank
and Trust company of Helena, at par.
The cost of maintenance at Gibbons
vile. for timbering, pumping, insurance,
taxes. etc, was estimated at about 81, 200
per month. With a view to reducing
this cost, short leases were let to miners
and the ore bought n milled by the
rece liver. 1t was represented to the court
that it would cost no more to operate the
PROPERTY than to keep it in idieness: and
on October 10, 1898, an order was made
peIlIlIllllE us operation at a cost not to
exceed 1000 per month.
From March q, 1898, to April, 1899.
there was a loss, including the cost of
maintenance before commencing opera
ton S, of $40, 1894. 35, not including certain
payments to consulting engineers ap-
pearing in the accounts herewith sub
mitted; from April /. 1895, to October 1,
1899, there was a profit of $7,693.73 and
for the months of April, May, June and
July, 1900, there appears & profit of
$4,5S4.87. The Gibbonsville mines have
therefore paid back the first years loss
of $40, 694.35. and have made 81. 206.1 ID adj
ditional. They have also paid for nearly
four thousand feet of development work,
for the installation of a cyanide plant to
replace the chlorlnation works, n for
a small mount Of work on the Bull of
he Woods group, which has been
charged to them. The mill has required
extensive repairs.
In March, 1899, an order Of court was
made authorizing the receiver to work
the Golden Sunlight mines, near White
hall. The receiver says of the work:
THE work is intensely hard, making
development work both slow and expen-
sive. Notwithstanding this considerable
has been done and in addition. the mine
has made a net profit of $25. 208.S 81. A
little ore in sight has been kept ahead
at all times. I believe that with develop
ment this property would become very
profitable. The concentration has re-
manned idle, as. 1t is not suited to the
class of ore produced by the mine, and
all ore extracted has been sold to
smalters."
-Four of the six law suits have been
settled. The other W. suits involve
title to the water with which the Glib
louisville mill is operated. A Judgment
for $165. 900, and interest now amounts to
$24. 300 was rendered against the CON-
pany on May 20. 1900, in favor of w. J.
Clark ct al. This case has been aDnealed
to the supreme court"
Continuing, the receiver says:
1T was obvious from the first that UNI
less by extraordinary good luck. the
debts of the company could not be paid
out of the profits of the receivership.
I we as also evident that the mines, with
out ore in sight and in a losing condi-
ton could be sold for only a small frac-
tion of the amount of the debts. The
representative of creditors owning $214,-
600 out of $3.50 900 of the e however.
informed me that If the mines could be
made to show a profit, none would be
raise ed sufficient to pay such debts as
Were not owned by themselves and thus
reorganization effected. AS the property
| has now shown a reasonable profit for
more than a year, I am Of the opinion
that a reorganization would have been
effe cted and the debts paid by this time,
but for the unfortunate issue of the
Clark lawsuit above mentioned.
'"These creditors, however refuse to act
| pending the settlement Of this suit; the
min es are not in a condition to De sold
to advantage at public sale, and if SO
sold, the Jul could not be distributed
until the Clark case is settled by the SUI
| prerne court.
So therefore recommend tina the mines
be continued in operation until this case
is decided. I recommend, also, that an
order be made requiring advertising for
!! claims against the cOmpanv. To avoid