Deseret evening news. [volume] (Great Salt Lake City [Utah]) 1867-1920, 1908-03-30
Issues Statement to Sharehold-
ers Explaining Company's
Troubles in Bingham.
HAS NOT LOST FAITH IN NINE.
Backs This Up BY Oncrng Ia Trade
His salt Lake Real Estate
For Stock.

The fact that ugly rumors have been
floating about for several weeks rela-
tive TO conditions at the Boston Con-
solidated mine in Bingham has caused
Samuel Newhouse TO issue a statement
TO shareholders and which was tele-
graphed east last night. There is no
denying the fact that the Boston Con-
solidated company has been confront
ed with a hard proposition. but that
the situation win he mastered In lit
tie time. those who have Kept In close
touch with the situation believe there
is on doubt
1t is unfortunate for Boston Consolid-
ated shareholders that development
work was stopped at the mine last au-
tumn when the financial panic came
on; but as everybody knows. the cone
pany was short OF ready cash to keep
things going. ana the management.
rather than involve the company IN
debt further, decided to cut expenses
down to the minimum. Work was re-
sumed again just before the beginning
of the present year. and IL anyone be-
lieves Mine Manager Gates has not had
his hands full he Is very much mis-
taken. Deep SNOW. trouble with the
surface tramway and the great thick
ness of overburden above the ore de-
posits has made progress tedious. The
is the whole thing in a nut shell.
NEwHoUsE's STATEMENT.
But here is what MI. Newhouse has
10 say.
ITO the Shareholders OF the Boston
Consolidated Mining Company'
Because of rumors In circulation
concerning temporary difficulties en-
countered by the Boston Consolidated
Ina At he ~ o
OF operations upon its porphyry ore
bodies, and the serious eXaggeration of
the facts upon which these rumors are
A.. founded, I desire at this time to state
the conditions TO our shareholders
THE first ore encountered by the
steam shovels, although good in cop
per. contains considerable amount OF
iron which prevents it's profitable con-
centration under present operating con-
ditions Our underground development
proves that as the shovels cut deeper
into the ore body the iron contents
caused by the proximity to the cap
ping become greatly reduced.
ION my return from Europe during
the past week this condition came I,
my notice and / Immediately enlarged
our methods of mining to include thu
production of ore from some OF on
tunnels at a depth where there arr
no iron difficulties, and from which q
profitable producer can be made at the
mill 1t will require 90 days to make
these changes effective
There is no reason for uneasiness
concerning the performance of our new
mill. Even under the adverse circum-
stances of handling the product first
coming from the shovels 1t has shown
an average saving of 66 per cent.
These rumors excite distrust and
suspicion in the minds of shareholders
and necessarily affect the market value
of the shares. My faith and confidence
in the mine and in the value of the
company's shares remains unchanged
but IL these rumors have seriously inn
paired the confidence of any OF the
Shareholders or II they are dissatisfied
with their investment l make To them
the following Offer
II own real estate in the business
center of Salt Lake city valued at two
million dollars. / am willing that this
property be appraised by the Real lGs-
tate association of Salt Lake City and
agree to accept within the next 80 days
shares In the Boston Consolidated Min
ing company at the rate OF $l5 per share
from any shareholder or shareholders
who viii deliver shares TO the aggre-
gate appraised value of my real estate