The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1909-05-30
GOLD SPRINGS
DEAL CLOSED
Short Elliott Interests Effect
Big Consolidation and
Splendid Finance It.
POWER SCHEME INCLUDED
JENNIE AND SNOWFLAKE PROP
ERTIES INVOLVED.

After having bumped up against and
having had to wrestle with al the dis
couraging problems that usually present
themselves 10 those who undertake the
working out Of mining and milling enter
prises in new districts Messrs Short and
Elliott, the first men to invite capital into
the Gold Springs camp, have finally won
out The splendid gold properties of the
Jennie and Snowflake companies have
been consolidated. OF an authorized bond
issue OF 10000, fiVe-eighths OF the
amount has been sold and the balance is
held in trust to be sold should necessity
require il.
The contamination Of the deal has re-
suited In the forming Of one big company
and placing il on a financial footing,
which means the immediate discharge Of
any and ali outstanding obligations of the
old companies, the building Of a great
power plant at MOdena. the opening of the
fine mines at depth and the enlargement
and betterment of milling facilities 1t
means that during the resent year the
mines Will be placed q good earning
basis and that all other companies op-
Grating in the same. section can be sup
piled with power on basis that will make
possible the successful exploitation and
profitable handling of other properties
than those owned by the big consolidated
concern.
It has taken time and no small amount
Of courage and energy on the part OF
Messrs- Short ana Elliott to accomplish
what they set out TO do and in the work.
AifE OAl o. the Llilal QedAs tuEN nave UeEl
ably assisted by A S. Martin; so. TO all
Of these men, she camp OF Gold Springs
and the shareholders Of the companies in
volved In the deal are under obligation.
They have got the machinery limbered
up that will make things hum in what is
generally conceded to be the best gold
camp in the state Of Utah.
How the Deal Was Made.
The formal closing up of the great
transaction came yesterday afternoon
when special stockholders meetings were
simultaneously held by the Jennie Gold
Mining company, In this city, and by the
Snowflake Gold Mining and Power COM
pany. at Gold Springs. Through the &C
riou taken all Of the property, rights and
franchises of both the old companies.
through practically unanimous action,
goes TO the new company, organized 10
take them over.
In the consolidation OF the two COM
pSnies the stockholders Of the Jennie Gold
Mining company received share for share
for its holdings, and the stockholders of
the Snowflake Geld Mining and Power
company four evenths of share for
each share OF their stock. The bonds OF
the company are ten-year per cent cou-
pom bonds.
The Gold Springs Mining and Power
company. as organized yesterday, will
have a capitalization Of one million dol
lars divided into one million shares of a
par value of one dollar per share. with
one hundred fifty thousand shares in the
treasury. C. A. Short is president Of the
company, A. S. Martin is vice president,
n. r. Elliott, secretary and treasurer.
and these, with W. B. Short, ". II. Bran
Il, ". ". Barton and G.. NJ. Harmon,
3 comprise the board Of directors Places
will be made on the board at an early
date for strong representatives OF eastern
investors in the company,
Through the efforts Of Messrs. Short
Elliott and Martin, arrangements have
D been made to finance the new company.
The stockholders of the respective COM
panies in the merger proceedings author
lied the issuing OF bonds for two hun
dred thousand dollars OF this amount
sl25,000 worth of bonds have been sold to
the Investors Corporation & Trust COM
pany Of Columbus, Ohio. and $4,000 worth
OF the bonds are TO be held in trust for
sale later for Improvements and better
ments if needed.
Through the funds available from the
sale OF these bonds and by the sale of
treasury stock. the company plans to
equip the property at once to handle not
less than 100 tons of ore per day, and dis
charge all indebtedness of the Jennie
company. and TO erect at M0dena. Utah.
the railroad station for the Gold Springs
district. a Soo-hcrsepower electric plant
which viii supply sufficient power for
all Of the operations of the company. II
is expected that orders for this plant viii
be placed during the coming week. The
plant to be installed VIII be producer
gas plant with producers. gas engines,
generators and full electric equipment:
with a ten-miie transmission line from
Modena 10 Gold Springs
How Things viii Be Done Now.
The property of the new company en-
braces fourteen claims, nine of which are
i'm Utah In the Stateline mining district.
and five I'm the Easle Valley mining dis
trict. Lincoln county, Nevada, but all are
adjoining and contiguous.
The company proposes TO double the
size of its power plant at an early date,
making Il a COO horsepower plant This
will provide power for all of the other
properties in the Gold Springs. Fay and
Deer Lodge districts. The income from
this source alone VIII be very profitable
TO the company. II viii be also the means
of putting a large number of properties
in that district on a paying basis. as the
question of power has been the one great
problem TO be solved there TO make min
INK a success. The ores of the district
are milling ores and require continuous
and economical power. With this sup
piled there is no question about the fu-
ture of the camp.
The gasoline engines at the mill will be
replaced with motors and everything op-
Grated upon the single unit plan This
rlant will be the first one of the kind to