The Eureka sentinel. [volume] (Eureka, Nev.) 1902-current, 1908-12-05
Misrepresentation That Are
Liable To Hurt This District
Circulars Being Distributed in the East by the Secret Canyon
Tunnel g Development Company Stating to Purchasers OF
Its Stock That Every $40 Invested Should Return
S45 In About Two Months

from parties in the East copies Of circulars promoting the sale of
stock in the Secret Canyon Tunnel & Development Company, whose
mining claims are located at Secret Canyon, about eight miles south
of Eureka, and also making inquiries regarding the worth and merit
of the properties mentioned therein. 1t is said these circulars are
now being distributed generally throughout the East
After reading over the circular in question, the SENTINEL finds
a number of very gross misstatements contained therein, which I'M
ldoubtedly will result in giving Eureka Mining District a "black
eye" among mining men who are now investing capital here, as we'll
as others who contemplate purchasing legitimate mining properties
and mining stock in this section.
While the properties re situated in good mineral territory and
lie adjacent to mines that have produced great wealth, still the
claims of the Secret Canyon Tunnel d Development Company do
not at present show any mineral valuations in the tunnel where the
three men-she companys present force-are now at work. How
ever, it would not be surprising if the company should run on to al
body Of good ore at any time but what we desire to make plain isl
that at present there is nothing in sight there to justify the highly
colored write-up in the circulars now being distributed IN the East
Eureka district has vast amounts of ore, but is not now
numbered, nor will it be numbered among the wildcat camps OF the
West if those having tho best interests of this camp at heart
can avoid it We know of no mines in this district which will
return 45o per cent in two months, but there are a great many mines
in this district which can be acquired for little money, and with
capital to work them can be made to return vastly more oil the
investment than most mercantile and manufacturing industries.
Among the most glazing misstatements made in the circular
are:
That the mines of the company IRE situated but one and al
quarter miles from the Eureka & Palsade Railway, when the fact
is they are distant eight miles, and the ore has to be hauled over a
summit which is usually impossible for heavy f~reighting during the
Winter months.
That the orr which the company expects will be encountered
carries Is per cent iron, and tina. the shelters pay from 40 cents to-
s150 per unit for all iron in excess of silica, when the fact is they
pay but 10 cents per unit
AS an inducement to persons to purchase stock the circular
states that it is expected the company will begin paying dividends
on February 10, 19O9-about two months hence-and for every $40!
invested a return of $45 will be made, and this in the face of the
fact that no ore has yet been found.
The pamphlet is a 12-page circular and starts off with "Secret
Canyon, Nevada-s2O0y0 100000 in Gold, Silver and Lead in large
black type This statement is qualified later on by including
Eureka district in the Secret Canyon production. This is followed
by a very fair write-up of the geological formation and character OF
the ores and the opportunities for investment in Eureka Mining
District.
The following extract is taken from a copy of one of the
the circulars received in Eureka this week:
The Organization
The Secret Canyon Tunnel & Development Co. was organized
and has been incorporated under the laws of the State of Nevada,
with a capitalization of $4,000, which is divided into 100000
shares, having a par value of one cent each.
The stock in this corporation is fully paid, worcestershire and
carries no personal liability, and was all placed in the company's
treasury for the purpose of acquiring and developing the property.
No Promotion Stock
There was no promotion stock issued to anybody, every stock
holder paid for his stock, and all future stockholders will come in
on equal basis (plus the increasing value of the stock, with those
who are already in. The personnel of the corporation is composed
of gentlemen who are true opponents of the square deal"
Property and Location
The property secured by the Secret Canyon Tannel & Develop
ment Co. was the Wolverine group of four lode claims and a tunnel
site located in Secret Canyon in the Eureka Mining District, in
Eureka County, Nevada, and consists of the Wolverine Nos. l., 2, 3
and A, lode claims, and the Secret Canyon tunnel Site. Ihey are
located on the same vein that has already produced millions o
i dollars, and covers an area of about ITO acres of mineral land. The
3 group is surrounded by properties that have produced many
81 thousands of dollars. The one on the north, which is the Diamond
group, has produced and paid over 81 100000 to its stockholders
and is now working in ore that has values from 5000 to 5000 to
the ton Another property joining the end lines on the south has
81 also produced thousands of dollars in ore which runs from 5000
to 5000 per ton.
RI Title To The Property
The Secret Canyon Tunnel & Development Co. owns the Wolverine
group through deed from Nj. G. L. Broy, ct al, who were the original
llocators. The deeds were turned over to the Company upon pay
ment of 100000 shares, or so per cent of its capital stock.
The title consists of location certificates properly filed with the
County Clerk and Recorder of Eureka County. All work necessary
to validate such title has been done and all legal requirements have
been compiled with. Application for a United States patent will
be filed as soon as we can make the necessary surveys.