Bisbee daily review., 1902-08-07
OLD DOMINION
 ITS CONDITION
RAILROAD CONCESSIONS.
Reduction in Freight Rates Which wiII
 Help all the Companies and Stin- ulate Mining m this District Old Dominion will Erect a Large

Oi6tFtCI.-
 Old Dominion will Erect a Large
 and Modern Plant.
 The Boston News Bureau of the 23d inst. publishes the following:
 The reports of Superintendent Hoar and Duncan McVichie upon the physical condition of the Old Donmin- ion property will be submitted to the stockholders this week. The reports will be presented in their entirety. but they will not agree as to the oonclu- sions reached.
 We understand that the McVichie report will show small reserves of ore. Poor management and antiquated ma chinery are alleged to have been the principal troubles with the Old De- minion, and the new management pro. poses to rectify these matters in the immediate future.
 The McVichie report will state that there are 100000 tons of ore in sight which will run 12 per cent copper.
 The Old Dominion plant is stated to be out of date and cost of mining out of all proportion to other Arizona mines.
 The 'caving' system of mining will undoubtedly be inaugurated new ma ch'nery installed for the economical treatment of ore and a determined effort made to reduce the cost of pro- duction. A material reduction in freight rates, which has been made by the Gila Valley road, vii. do much to bring about these results.
 We understand that the new man. agement of the Old Dominion has sought legal advice as 10 the instilu- tion of law suit to recover upon 50,- 900 shares of Old Dominion. which was distributed among directors and friends at the time Of the formation of the company ir is alleged. without any adequate return to the company"
 Boston. July 24.-President Smith. of the Old Dominion Mining company. issues the long-expected report on the property. incorporating herewith the expert statement Of Messrs. Dun- can McVichie and F. w. Hoar, brief abstract of which we published yester- dey, says the News Bureau.
 President Smith. among other things, says that the two reports confirm each otiicr The conditions in ;he lover levels are stated to be favorable, indi- eating that by. future development the rich sulphide ores will open into large ore bodies.
 The directors believe that the meth cd of smelting should be changed
 On April ?, 1902. the company had q floating indebtedness of s357 IFS. draw ing per cent interest. Before July l, 1902. this had been reduced to s75,- 7S3 through the sales of copper on hand and such small profits as has been made from mine operations since April 2, 1902.
 The cost of contemplated additions and the cost of providing modern equipment and sinking a new shaft, which are recommended by the super intendent. will involve an expenditure of from $250 900 to $300, 0,0O0. The di- rectors believe that the whole amount required, as we'll as for paying the re- maining floating indebtedness, can be obtained partly from the working of the fue dust and Continental ores now on hand and partly on the sale of matte and high grade sulphide ores on hand, so that the company need not be burdened either by floating indebt- edness. or bond issue. and that the issue of additional stock is not re- quired
 The production of fine copper for the year ending December 31. 1901, was 10.094.7S7 pounds, and has been continued at the same rate. During this year the cost of producing refined copper laid down in New York and sold as electralytic copper, was 12A cents per pound. For the three months ending June 30. 1902, the cost of fine copper laid down in New York and sold in the form of pig copper has been 101z cents. (The cost of refining pig copper into electrolytic is about T. of a cent per pound.) It is believed that the cost can be reduced to 8 cents. A part of this reduction will be gained through the substitution of modern equipment, the balance by re- duction of freight rates. The aggre- gate freight charges for the year end ing December B. on each pound of copper produced was BIZ cents.
 After protracted negotiations with the Southern Paciffic and Gila Valley Globe and Northern, large reduction in freight rates is assured. The Rock Island and Atchison roads, it is stated, are about to extend their railroad sys- tems to Globe
 The report of Mir Duncan McVichie says:
 we found 55,550 tons of high grade sulphide ore. averaging 11.s per cent copper. and s, ,454 tons of high grade oxydized ore. with an average value of 10 7-2 per cent copper. Our total estimate is 109, ,013 tons. having gross value (figuring coper at 11% cents) of $3.135. .9s7.
 The ore included in this estimate is found below the seventh level The mine above the seventh level should yield 200. 900 tons This part of the mine has not been thoroughly pros pected.
 "The upper portion of the mine has settled: the shaft is moving more
 -, on <h1 ,;rno While shore is