The San Francisco call., 1908-10-18
BATTLE BEGINS
|. FOR CONTROL
OF COMSTOCkS
War on Sturges Follows Stormy
Meeting Between Zadig and
Frederick Swan
Millionaire Coal Baron Charged
With Resuming Extravagant
Practices He Condemned
Western Men Resent Accusation
OF Grating on Powder
Supplies at Mines

A sharp battle for the control of the
Comstock mines has been precipitated
in San Francisco and will be waged
with bitterness until the annual cleo
tons in December decide the issue.
On the one side are the eastern in
terests, headed by Edward B. Sturges,
the millionaire coal baron of Pennsyl
vania, and opposed to him are the
western interests, composed of miners
and brokers headed by Herman Zadig,
Bob" Morrow and Charles Hirsh-
field. Apparently the situation was
peaceful until Friday, when Zadig and
frederick Swan, the representative of
Sturges. had stormy meeting in Bush
street The lie was passed, blows were
threatened. and as soon as the bel
ligerents were separated preparations
were made for the fight for control.
+ Trouble between Zadig and Swan had
been brewing for some time. When
Sturges bought heavily into the Com
stocks, he introduced a policy of re-
tTenchment, which was carried out by
his son., George Sturges, and by Swan,
who holds the position of secretary. of
the Crown Point company Sturges
has accused the western men of gross
extravaganza and mismanagement, and
during the meeting on Friday, Swan
charged that Zadig had been grating
on the powder supplied to the mines.
Zadg hotly denied the accusation and
retailiated by charging that Sturges
had adopted his retrenchment policy
only in order to remove the old en-
ployes and replace them with his
friends.
ECONOMIC POLICY ADOPTED
1t was in April of this year that the
elder Sturges made his heavy purchases
in the SComstocks, acquiring full con-
troll Of the Crown Point and a very
heavy interest in Mexican, Con Eir-
ginia, Ophir. and the Yellow Jacket.
Sturges found, upon assuming control
that very large amount of money
was wasted in extravagant salaries. He
began by cutting off these perquisites,
and then separated a long list of as
sistant secretaries and retainers from
the payroll. effecting saving of some
$4,000 year.
During this time nothing was heard
from the opposition. 1t was announced
that Sturges proposed to operate the
mines in a business way and to learn
definitely what was located in the lower
depths of the Comstocks. 1t became
necessary for Sturges to levy assess
ments, but as these had been the rule
in the Comstocks, no opposition was
manifested.
A few weeks ago trouble developed
at the comfnissary store maintained at
Virginia City by a syndicate, of which
Zadig is said to be a member. Sturges
gave notice that his mines would no
longer make their purchases at the
-commissary store, but would secure
their machinery and powder direct from
San Francisco. Sturges had objected
to the prices which Zadig maintained
were as low as they could be made
Another incident which widened the
breach was the action of Sturges and
his associates in placing $4,000
mortgage on the Yellow Jacket mine
IL has always been the policy of the
western operators and brokers to give
their personal notes to raise ready
money. They argue that mortgage.
on mine tends TO destroy the value of
its stock in the open market
NEW ExTRAvAGANCE CHARGED
Another objection was raised by the
western men when Sturges appointed
his son manager of the Crown Point
at 5000 a month and installed a secre-
tdIy anu dlt dSSiSldltt dJ d tOIdI. salary
of $125 a month. They charged that
Sturges was using the extravagant
methods against which he had pro-
tested.
Swan was closeted for some time
with Zadig on Friday, and when they
separated it was with an understanding
that there would be a fight to the finish
for control. AS result of the con-
troversy there was a general decline
among the Comstocks. The western
group, led by Zadig and Morrow. have
laid plans to oust Sturges and his as
sociates at the December elections
Sturges, on the other hand, is prepar-
ing to strengthen his position
Much of the stock in the various COM
panies is held in the form of proxies.
A general canvass has been inauauratefl
to- locate the real owners. The fight
will continue without abatement until
the elections. as compromise on any
basis is said To he ont oftfb rraof;<.-