Waterbury Democrat., 1902-03-19

by silver-lead carbonate property that will produce the requisite ore for the smelter.-
 1 believe the immediate adjoining property to the South and West of The Old Terrible to be just what we would require and it's location is such that it could be operated under the same supervision as The Old Terrible Mines and the ores delivered to our smelter''
 This property consists of seven claims contiguous to those which we own. We spent the entire day on this property and examined it carefully both on the surface and underground, so far as it has been developed, taking samples from the ore at several points on the different claims, which were subsequently, assayed and showed an average value of $30.16 per ton.
 The ore veins on this property, so far as developed are as clearly defined, both as to magnitude and quality as those of our own properties which we have described, but as indicated in MT. Pearce's letter, as quoted above, the ore is of an entirely different charac- ter and possesses characteristics which are indispensable for our purpose in that it does not require to be handled in the mill, but goes direct to the smell ter and includes constituents which greatly facilitate the smelling of our own concentrates.
 A comparative estimate of the re- suits of the operation of our new plant. first with our present properties and second, with the addition of the pro- perty which it is proposed to purchase is as folloWs:-
 FIRST:
 With our present properties only. Capacity of mill 60 tons per
 day at S20 per ton .... S1,2O0.OO Cost of mining 60 tons
 at $500 per ton $1S0OO Cost of milling 50 tons
 at S1.OO per ton :. 600O Loss i'll milling 50 tons
 at S4.00 per day. 240.Oo
 4so.oo Result 10 tons of concentrates .S72O.00 Cost of smelting 10
 tons at $500 .... 5000 Loss in smelling 10
 tons at 5000 .... 5000 Marketing product .. 5000 General expenses, wear
 and tear, etc ..... .50.OO
 $2O0Oo Net result per day ..........$ $520.OO
 SECOND:
 With additional properties proposed to be purchased
 Add 50 tons carbonate
 ore at $15.0O ..... s 75O % Cost Of mining 90 tons
 at $500 per ton .$15OOO Cost of smelling 50 tons
 at $4.00 per ton .. 10000 Loss in smelling 50 tons
 at Sl.5O per ton :. 75.00
 425.00 Additional net result per day. .$325.Oo Profit on our own ore as i. above ................ s52ooo Additional net results per
 day ................ s25.oo Total net profit Der day.... $S45. % It will be seen therefore that the purchase of these adjoining properties assures an increase in profits to the company of over 50 per cent and if we confne ourselves to the prop critics which we now own our smelter will necessarily be idle more than half the time with largely increased running expenses per day in consequence.
 It IS therefore our deliberate and 1lXed conviction that the purchase of these properties under the option now ill force for the sum of S15.OOO is q wise and prudent business proposition and We heartily recommend that the stockholders take action accordingly. On our return we spent two days in El PaSo and inspected the new ma chinery being constructed for us at that point and furnished under con- tract by the mine and shelter supply company and the Fl Paso Foundry and Machine Company, all of which we found completed and ready for shipment. Two car loads of the new machinery were being loaded to be shipped the following day, so that there is no question but that the en- tire plant will be completed and ill op- eration by May first.
 In concluding this report we desire to say that ill the case of every min- ing proposition there are two indis- pensable requisites for it's success So0d= =mlne ana good superintendent or general manager-and that the lat ter is the more important of the two The stockholders of this company are to be congratulated in that their property is operated under the super vision of Mir. S. l.. Pearce, q man who unites i'll the highest degree ability, integrity, economy and indefatigable industry-l combination of excel lancies rarely found in one man, es- pecially in that country, and of his subordinates Messrs. Bricker and Warren who are both loyal, capable and experienced men.
 All of which is respectfully sub mitted.
 (signed) L. W. SWEET,
 WAI. II. PALMER
 BIindtng Foods.
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