Deseret evening news. [volume] (Great Salt Lake City [Utah]) 1867-1920, 1908-05-22
DONALD GILES
TONOPAH LEMON
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Tonopah Extension Conditions
Said to Be Anything But
Encouraging.
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MINE CONTROLLED BY SCHWAB
MINE CONTROLLED BY SCHWAB
steel Magnatc Declares He Was De-
ccivcd by His Own En-
ginccr.

Eastern shareholders OF the Tono-
pah Extension Mining company have
started an investigation of the affairs
of that corporation and at the annual
meeting last Monday the Donald Gill
lies management. it Is said. was Sc
vercly criticized and coming on top
of the Montgomery-S collapse
the casterners were not in the mood
to accept excuses for the failure TO
make good
a New York paper commenting on
the Schwab- Gillies undertakings in
Nevada few days prior to the meet
ing, said:
"Tonopah Extension, which sold
yesterday at IS cents a share, sold
prior to the panic last year at S13 a
share. Montgomery-Shosh when
sold at Sl7 a share, is now selling Tor
less than 81 a share. The attitude OF
the management in refusing to allow
outsiders to make an examination OF
the Tonopah mine has created fears
that practically the same condition
exists there as was found in the
Montgomery Shoshone mine, EX-
perts employed by important stock"
holders, who have gone through the
Tonopah mine without the knowledge
of the management. have made eX-
ceedingly adverse reports.
an the case of the Montgomery
Shoshone the management would not
allow an examination by the stock
holders until they were finally forced
to consent The recent report which
was viscd by Chester Beatty, showed
that the mine was worth about $780,
600. or precisely the amount which
the company owed Mr.. SchWaD LOT
advances made.
stockholders Of the Tonopah EX-
tension are inclined to believe that
Mr.. Schwab relied entirely upon Dom
aid Ciillies, his mining expert, and
that the latter conducted stock mar
ket campaign rather than the deVel-
opment of the mines. William Mont
gomery, formerly cashier of the Al
legheny National bank of Pittshurg,
whose populations have now amount-
ed to S1.250.000 was a large stock
holder III both the Montgomery-Sho-
shone and the Tonopah Extension.
The losses which he sustained In these
properties were enormous and did
much TO account for his withdraw
ais of large sums of money from the
bank.
"Charles NJ Schwab said yesterday
that he will now insist upon an inde-
pendent investigation of the Tonopah
Extension. L own one-third of the
stock he said. and / am heartily in
favor of an Independent examinations
The stockholders of the Montgomery
Shoshone are naturally and justly
aggrieved at the reports of the Gill
lies management In January Mr.
Gillies reported s5.000,000 ore in
sight. and within few weeks an in
dependent report shows 100000.
Either the Gillies report was made
without thorough knowledge or false
~ and with intent to deceive. 1t is
no wonder, therefore, that stockhold-
ers of the Tonopah, alarmed by the
discrepancy in the Montgomery-Sh
shone, should demand an investiga-
ton of their own. All / can say is
that / have been more deceived than
any one else. as | advanced all the
necessary money in both cases to
carry on the work.