Los Angeles herald. [microfilm reel] (Los Angeles [Calif.]) 1900-1911, 1908-05-11
DISPUTES TALE OF
SHOSHONE MINE
DECLARES REPORTED FAIL URE
A STOCK JOB
MINE HAS ABUNDANCE OF HIGH
GRADE ORE
'ntmation That "Freeze-Out" of Bob
Montgomery Is Part Of the
PIay-Millions in
Sight

In summarizing the Montgomery
Shoshone situation the Rhyolite Her
aid says:
That the attempt to discredit Mont
gomery Shoshone is a clear case of
stock iobbng is too evident to DC
questioned.
The history of the promotion, which
has been outlined in the Herald this
week should be convincing of the fact
that Rhyolites leading mining propo-
sition has been made the game OF
some real frenzied finance.
1t is interesting to note that after
Mr.. Schwab's engineers had sampled
and resampled the mine eighteen
months ago, Mr.. Schwab was willing
to recommend the stock to his friends,
and gently handed 1t to them from
500 q share up, or 400 per cent on the
par value of So per share. 1t is FUR
Their interesting to recall that Me.
Schwab, instead of financing the prof.
ect at this top notch market preferred
to advance $400, 900 with which to equip
the mine with a big mill and neces-
sary improvements. And again, IL is
interesting, although exasperating, to
recall how the stock began to slump
until it hung around 81, just previous
to the big play, which was pulled OFF
last week on the New York curb.
1t may be noted further that one
of the principal inducements held out
to Senator w. A. Clark for the con-
struction of the high line of the L.
". & T. railway through Rhyolite were
the tonnage and business promised by
Schwab's project, and also that the
Nevada California Power company
was induced to enter the Bullfrog dis
trict with a line that cost half mill
lion dollars on the strength of a long
term contract with Schwabs Shoshone
mill.
Now. according to new Developments
alleged to be real facts-although To-
cally questioned-Schwab, Clark and
the power company have all been
fooled, and the Shoshone is a swindle.
All men are liars who have reported
on Montgomery Shoshone, except one
"A. Chester Beatty, if the advance re-
ports on the official mine examina-
ton are correct.
Schwab's Interests
When it is remembered that men
like Charles NJ. Schwab are not in the
habit of rushing in where angels fear
to tread" the proposition may be seen
in a different light. Mr.. SchWab knew
what he was buying when he took hold
of the Shoshone. 1t has been stated
and even credited to direct statement
from Mr.. Schwab, that he has been
disappointed in his Nevada invest
ments, which were recommended to
him by his engineers, yet it develops
that the same engineers who induced
Mr.. Schwab to invest in Nevada are
still on his staff and continue to be
his chief advisers in all mining mat
tiers. The wonder is that Mr.. Schwab
doesn't clean house with these "un-
desirable attaches.
There is another feature to be con-
sidered. One Bob Montgomery, dis
coverer of the Shoshone and holder of
100000 shares of stock, is said to have
been slated for the freezeout and If
the recent play isn't enough to handle
Bob, perhaps there will be more
strenuous effort made
Referring to the real merits of the
Shoshone mine. the allegation that the
property is a swindle appeals to US as
perfectly ridiculous. The property has
made an excellent record for produce
tion, both in shipping and milling
values. and the bars of bullion and
cars of concentrates that are being
ing powers of the output Up to date
there has been no disappointment in
the mines productive ability, and the
only question seems to be- what may
be expected for the far distant future
We do not credit the statement that
no commercial one has been opened up
in the past six months. The writer
has had the privilege of visiting the
workings on several occasions, and
was given permission to sample GER