The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1906-03-19

PLANS GREAT OPERATIONS
MAKES PARTNERS OF MEN WHO
SOUGHT HIS AID.

Tonopah. New, March 17-CharIes NJ
Schwab has forced the great smelter
trust TO terms, so far at least as its op-
erations cover the districts Of southern
Nevada. The steel maSnate, who was at
one time prominently identified with the
greatest trust Of them all, has had a
change Of heart and developed into
trust breaker by compelling the Ameri-
can Smelling Refining company TO
play fair with the mine owners of Bull
frog, Manhattan. Goldfield and TOnOpah.
His pOcket-boOk has been touched, and
from the arrogant vantage point Of man
ufa ctuTer Of raw materials he has placed
in the relation Of producer 10 man
ufaCtuTer of raw materials he has been
placed in the relation of producer 10 man
ufacturer, who, for the time BENG at
least, was at the mercy Of one OF the gil
gantic combines Of the country, contrOll-
ing practically the entire output or min
erals of the land
Through his purcase Of tine MOntSom-
ery-ShOshOne and ShOshOne POlaris mines
at Bullfrog he found himself literally
up against" the smeltinS trust with its
eXOrbitant reduction rates, which have
so initiated against the profitable pro-
duction OF ores from these camps
This boon to the state of Nevada has
come through SChwab's entering the
southern Nevada mining fields as an eX-
fensive operator The issue became
tensely drawn when he and Malcolm l.
Macdonald COnSummated the conSolida-
shone POlaris and Crystal properties into
one great concern, which gives every
promise of becoming the greatest mining
corporation of the world
Enters BuIIfrog Region.
His first move against the smelling
combine came shortly after his purchase
of the Montgomery-Shoshone group
Grasping the situation at a glance
Schwab hurriedly purchased the old Mar
tIneZ smelter near San Francisco Then
hat rIna sta vT71c
nate was about TO enter the smelling
field as an independent operator. This
instantly brought concern to the trust
Officials Of the corporation hastened to
negotiate with SChwab, with the result
that a perfect understanding was brought
about i'm short order and the steel mag
nate withdrew from the field His con-
tract with the smelter trust is for twenty
five years duration and secures the
treatment of his ores at the minimum
The Martinez smeHer has passed to the
ownership Of the smelling corporation
and the mine owners are TO nave talr
treatment from both the smelters and
railroads
is Becoming Heaviest Operator.
That Mr.. Schwab intends becoming the
heaviest operator in the southern Nevada
country is shown by the extensive and
elaborate plans that have been perfected
and are now peln6 carried OUT 10 ueEeIop
and equip the Montgomery-Sho
Consolidated mining properties His
successful war against the smelling com
biue will give him an advantage in his
operations throughout the state, partiCU-
larry at BullfTog and TOnopah, his con-
troll of the Tonopah Extension mine at
the latter camp making him the second
heaviest producer of the district
Mir. Schwab was first interested in Bull
frog through Malcolm l. Macdonald,
eminent mining engineer and capitalist,
who Joined interests with Bob Mont
gomeTy. the original locator Of the Mont
Comery-Shoshone when the property was
a1r@. q
things looked decidedly discOuraglng Mac
donald proceeded with the development
OF the then prospect eXpendlng money
ne had made out Of the mines OF Tonopah-
When the great strike Of fifteen months
ago was made on the ShoShOne the dtten-
ton of the steel magnate was directed
70 the section. When he was approached
with a tentative offer of the control of
the property he decided to journey
across the continent TO examine the pros
pect- He was accompanied by Macdon-
aid and shown every feature of develop
ment. While pleased with the showing.
Schwab wanted an immense mine and
more ground. and suggested negotiating
for control of adjoining properties
Then followed months of dickering,
prosecuted principally by Macdonald. to
whom Schwab had entrusted the matter.
At last Macdonald had the deal shaped
ND and the steel king again journeyed to
the southern Nevada camp, where the
final transfer was consummated, the
purchase price being IN the neighbOrhOod
Of S6Oo0.OO0
Months Of Uncertainty.
During the period Of development OF
tAe Observation-Disclosures group there
sprang up a remarkable strong friend
ship between Montgomery and Macdon-
aid; q friendship that is rarely found IN
this day Of struggles for commercial
supremacy. A strong element Of human
interest also attaches TO the earlier days
OF the mine down to its final cOnSolida-
ton with neighboring properties. The
partnership between the two principals
was one Of complete harmony and trust
At one time to Macdonald was given alb
soIute power OF attorney to dispose of all
the Interests Of Mir. Montgomery upon
such terms IS he saw fit Montgomery
when II came to tho final transfer. ex-
perienceG the kcenest regret oVef part
ing with his interest. He had gone
through years Of hardship and poverty
In winter and summer he had jOurneyed
far from civilizing environments through
the treacherOuS desert wastes of south
ern Nevada in quest OF a gold mine.
Several times he had located what ap-
peared to be promising prospects but
nothing OF importance had developed
from them. From the first he firmly be-
Eeved the ELECTROMAGNETIC would
turn out TO be a great mine. The i'm
naense bikes Of qtsartzite or sIicious por-
Dhry that boldly cut through the country
indicated to his experienced eve perman-
ercy Of the ore bodies. And when he
found "cOOrS'' wherever q pick was
driven into the mass his confidence be
came a certainty. He saw ahead the re-
alizatiOn of his happiest dreams; y tTiT
abroad for his wife's health. which had
suffered from sharing with him the tri-
sis and denitlS Of years Of struggle. 9
magnificent home in California and peace
and contentment that come only with a
plethOricaHy filled pocket book: al
these were looming up in the immediate
future
Months Of uncertainty. however. follow
ed during the negotiations making foi
final transfer to 2 strong corporation
that could deal successfully with existing
conditions
Seek Schwab's Assistance.
Macdonald and Montgomery turned tC
Mr. Schwab. Without 4 scratch Of the
ren Montgomery gave Macdonald his All
eoIute power Of attorney to dispose of his
millions of property as he saw fit in
Guiding the fixing Of the price. to his
associate The latter again accompanied
Schwab to the mine where final transfer
was made.
Takes in N,uners at Partner