Deseret evening news. [volume] (Great Salt Lake City [Utah]) 1867-1920, 1909-06-05
KNOX KNOWS NOTHING
OF CONSPIRACY CASE:
Salt Lake Banker in Ignorance OF In
dictmcnts Brought in Silver Peak
Bullion Statements.

II know absolutely nothing about
the matter, except what l read this
morning 1t seems To be q controversy
between the tax collector of Esmerllda
county and the officials of the Pittsburg
Silver Peak Mining company While
/ am director in the company. l know
nothing Of the details of It's daily bust
ness, as the offices of the company arc
in Pittaburg, and the business of the
company Is attended to there
So said Frank Knox, president of the
National Bank OF the Republic in this
silver Peak Mining company. In reply
to a question as to the correctness of a
story printed in a morning paper. stat
ing that an Indictment had been re-
turned by grand jury in Esneralda
county, in Nevada, against the officers
and directors of the mining company
named, charging them with conspiracy
to defraud the county and state. by
means of issuing fraudulent bullion tax
statements. The dispatch containing
the information of the indictment pur-
ported to originate at Goldtield, the
county seat of Esmeralda county. The
charges allege that the officials stated
the cost of reduction of ore to be 81
per ton, whereas it is claimed to be
actually but S1.10 per ton, and that
the greater portion of the profits has
been charged against the maintenance
and other enterprises OF the company,
distinct from mining.
The dispatch states that United
States Senator George T. Oliver. VIII
liam Flynn, T. j. Crump, John S. Well
Ter, Ralph E. Flynn and J. G. Splane
OF Pittsburg, George Bradley and NJ.
l.. Finger of Blair, Charles Y. Fuller
and NJ A, Carton of Utica. N. y,
Frank Knox of Salt Lake and j. Fl.
Brown of Wilmington. Del, were
among the officials indicted, Mr..
Peak company, and Senator Oliver
being a prominent officer in the cor
poration There is considerable of
Silver Peak stock held In Salt Lake
City, and up to date only the best Of
reports from the properties have been
received.
Mr. Knox secuted the idea that
there was any ground for criminal
charges in connection with the mat
ter. Our company has invested more
than $2,000,000 in the property said
Mr.. Knox and only something over
a year ago We're shipments Of bullion
begun. We built mill and started in
to work the property right The re-
turns have not begun to pay back the
good while before they do. The
trouble seems to be merely n diff
ference of opinion between the tax tax
lector of Esmeralda county and the
management Of the mine at Pittsburg
as to what constitutes net re-
turns. The charge of conspiracy
is ridiculous, from the fact that
the bullion shipment of the
mine, from the time shipments We're
begun, are and have been open to the
of the tax officials. Every
pound of bullion produced by the mine
is shipped to the mint at San Francisco.
The returns are accessible to the county
and state officials, and they may know
to cent just what the mine produces.
Il am director in the company, but
owing to the fact that the headquar-.
ters are located at Pfttsburg, where
the leading officials reside, it is impos-
sible for me to attend the directors
meetings. But l know this much, that
the mine is conducted on a business
basis, and that the only foundation
for the story published in the morning
paper seems to be, as I said, a differ
ence of opinion as to what constitutes
net returns. I am as ignorant as to the
details of the iten as anyone, and
shall watch with interest further de-
velopments.