Deseret evening news. [volume] (Great Salt Lake City [Utah]) 1867-1920, 1907-01-04
OHIO ToNoPAH DEAL.
Local Shareholders Advised OF an I'M
portant Transaction.

A circular received from the head
quarters of the Ohio Tonopah Mining
company at Youngstown. Ohio, by To-
cal shareholders of that corporation In
dicates that the directors have succeed
ed in turning quite an important deal
involving holdings at Como, Nev. The
circular says:
1--WE take pleasure in informing the
stockholders of the Ohio Tonopah
company that this corporation has sue
ceeded in allying its Logan interests
at Como. Nevada, with the mining in
terests of Col. j. NJ. Guffey John Fl.
Galley and Emmett Queen. oil operators
OF Pittsburg. Pa, who have owned ana
operated for four years, the property
that lies to the east of the Logan
mines at Como, commonly called the
South Comstocks, and some time ago
a corporation was organized under the
name Of the South Comstocks Consoli-
datad Mines Co, for the purpose OF ac-
curing the entire holdings of the Cuff
fey Galley and Queen. including their
min and electric power plants In the
Como district, making one of the largest
consultations of mining interests In
that country.
Recognizing the advantage of being
associated with SO large and powerful
an organization. negotiations We're
opened with the South Comstocks Con-
solidated Mines Co. for them 10 ac-
quire all the rights, titles and equities
OF the Ohio-Touopah Co. in the Logan
mine, assuming the outstanding obll-
cations, as we think that an organiza-
tion equipped by the best mining tai
ent Is better able 10 do justice 10 the
Logan property than ourselves at the
-.
sation was discussed and the actual
cash expenditures made by Guffey, Ga
ley and Queen, as compared with the
expenditures we have made on the
Logan property was the basis on which
an agreement was reached. This con-
firms our former belief in the value of
the Logan mine from their desire TO
deal equitably with us in the matter
of compensation. The South Comstocks
Mines Co. is to assume the outstand-
Ing obligations against the Oho-Ton-
opah Co. relative to the balance in
payment due on the Logan group Of
mines and we are to receive a large
amount in the fully paid and non-as-
sessable shares OF the corporation.
THE South Comstock Consolidated
Mines Co. has been organized under the
laws Of Arizona, with capital stock
of s10000.000, divided into 10000 900
shares af 81 each, par value. This com
pany did not make the mistake that
companies usually do, that is not sup
plying the treasury with ample funds;
but realizing that the proposition
ahead was on of enormous magnitude
for the South C0mstocks or Como prop
critics are considered to be the sister
ledge TO the North Comstocks. that has
enriched the world 100000, 900, and
which was developed by three shafts
each over 5000 feet in depth; the main
bonanza of which was struck at the
depth Of l.200 feet they have left
handsome treasury reserve of stock.
"rhe North Comstocks were devel-
oped by levying assessments OH its
stockholders. this is not to be the case
with the South Comstocks Consolidated
Mines Co. its stock being fully paid
ana non-assessable, consequently, We
think their Judgment Is sound. for they
have placed In the treasury OF their
company 100000 OF their own capital
stock for operative expenses. Ii is not
believed, however. that any great sums
win be needed to place these mines
on dividend paying basis, but. as the
treasury stock Is owned by the out
standing stock I'm proportiouate part, II
only increases the value fthe out
standing stock when such heavy
treasury reserve Is considered.
After a great deal Of negotiating We
have succeeded In getting IN our prom
ties, equities, rights, etc. relieving our
selves fthe burden OF further pay
ment o fthe balance due on the Logan
property ana receive total sum of ST.
10000 OF stock OF the South Comstocks
Como Consolidated Mines Co.. fully
paid, which has not been taken from
the treasuhw but from the So 600 600
aside from the treasury stock. The on
~ restriction placed on the stock we re-
celve, being that, as the South Com
stocks Consolidated Mines Co, win be
called upon to make the development
and 90 raise the capital. This 81 $50 900
OF stock shah remain In the treasury OF
the Ohio-Tonopah company for period
not 10 exceed two wears. but In event
That the South Cnmstocks Consolidated
Mines Co, should 20 upon paying ba-
sis before that time then this obliga-
tIon 10 hold M The treasury will he cam
celled. and the board OF directors have
Il right, IN their JUDGMENT either TO
distribute this stock along the stock
holders OF the Ohlo-Tonopnh Co, or 10
hold the stock IN the treasury and d.
vide whatever dividends may be de-
clared upon The same