Los Angeles herald. [microfilm reel] (Los Angeles [Calif.]) 1900-1911, 1909-11-02
EARLY DAYS OF A
GREAT GOLD MINE
INQUIRY RECALLS HISTORY OF
BONANZA
Greed of Leasers Brought on First
Apex Suit in GoldfieId, Which Re-
suited in Consolidation Of
Five Big Producers

mine at the time it was taken over by
the Consolidated of Goldheld. The Mo-
hawk was capitalized with 100000
shares of par value of 81 per share
of which 100000 shares remained in the
treasury. which also contained about
81 600 600 received as royalties from
leasers. The stock was taken over at
500 per share, in exchange for Consol-
idated at par $50, but afterward sold
up to $3.50 for single small lot in
San Francisco Several thousand
shares OF Mohawk stock never came
in for transfer, and the stock is be-
Iieved TO have been destroyed in the
San Francisco fire of 1905.
The Mohawk. Red Top and Laguna
mines formed the nucleus of the con-
solidation. Red Top and Jumbo were
taken over at 81 per share and Laguna
at 50. Later on the company bought
the stock of the Combination for
81, 900 900, of which S1.0oo,000 was paid
in cash and the balance in stock at
$3.50 per share The Wingfield inter-
ests in the January mine, which he
bought to use as q club In the Com
bjnation- Mohawk apex suit which was
dismissed when the Consolidated
bought the Combination, was also
taken into the fold, and these mines
now form the holdings of the Goldfield
Consolidated company. capitalized for
$50 900, 900, par $40, with 100000 shares
issued. The company is paying $1.2O
per year in dividends, the highest rate
of any dividend paying mine in the
world.
The following interesting account of
the origin of the Consolidated company
was related to the mining editor of The
Herald by Senator Nixon while he was
acting i'm the same capacity on the old
Goldheld Chronicle. Harry Taylor of
the Sweetland Filter Press company,
SOC Union Trust building, is a brother
of the Charlie Taylor mentioned as
owner of the Red Top and Jumbo
mines, and was himself heavily inter-
ested in both companies, having been
one of the locaters of the ground:
To the greed of Combination lessees
is due the first step in the formation
of the Consolidated company From
John wellington Finch, general man
ager of the company, and Charles S.
Thomas, former governor of Colorado,
and one of the great mining lawyers
which the west has produced, came the
first suggestion of a consolidation.
The operators of the Sheets-Ish lease
on the Combination had followed from
the surface a shoot of rich ore which
passed into Mohawk ground on its dip.
Under the ancient and pernicious law
of apex they claimed the right to the
ore. A suit at law followed. Gov
ernor Thomas was engaged as attog-
ney and Mr.. Finch, who is one of the
foremost biologists of the intermoun-
tain country, came out from Colorado
as an expert witness for the Mohawk.
Received in Pajamas
After a careful examination of the
ground Mr.. Finch reported to Nixon &
Wingfield that the Mohawk, Combina-
ton, Red TOP and Jumbo formed one
great ore system. In the conference
which followed 1t was suggested by
Governor Thomas that a consolidation
be formed, including the Mohawk and
Laguna, of which Nixon and Wing
field owned the control, and such other
of the properties mentioned as could
be secured. The matter was discussed
pro and con and due consideration was
given the Red Top and Jumbo, the con-
troll of which was owned by Charles ID.
Taylor. This was on the 10th of Octo-
Der, 1906. Mr.. Wingfield said that he
had been given a price on Charlie Tay-
lor's stock, 100000 shares, which, with
the stock in these companies held by
Nixon and Wingfield, would give them
the majority interest in both. At IL
o'clock that night the senator and Mr..
Wingfield went to Taylor's home to see
what could be done. Mr.. Taylor re-
ceived them in his pajamas. the trio
lit cigars and had the big talk. "Tay-
lor," said the senator, what will you
take for your stock in the Red Top
and Jumbo?" II have given an option
on it to D. Mackenzie" was the reply
(which don't expire until the 23d of
this month";" Eyes, I know that, but
/ don't believe he will exercise his OPP
ton. Now, If he does not, will you
name a price to us?" yes" was the
reply. 81 will sell you the stock for 50
a share" "All right, we will make you
this proposition: You give us an OPP
ton on that stock for thirty days at
$1,000 a day. If we conclude the deal
the money we pay you is to apply on
the purchase price. If not, it's yours"
The proposal was accepted by Taylor
and the senator and his partner de-
parted.
Miners Buy the Stock
so closely was the secret guarded
that not one breath of the midnight
visit was breathed. Mackenzie's time
expired and on the gath day of Octo-
Der Mr.. Finch commenced an exami-
nation of the mines But this could not
hs kept from the public. Mr.. Finch
was known to many of the miners and
they hurried down town and gave or
q ars for stock. The brokers with whom
the orders were placed asked questions,
and within twenty-four hours red Top
and JUMBO began to jump. Up, up they
went, from $3.50 to 81 a share. All this
time there had been no written con-
tIact between the vendee and vendor
not a scratch of the pen to show for
q dea involving a million and a quar-
ter dollars, and with the stock jump
ing at the rate of $4,000 a day
Weren't you a little uneasy, senator"
mot in the least. Mr.. Wingfield and
I both knew Charlie Taylor, and knew
that he would keep his word If the
stock went to $40 a share"
Gave Check for a Million
On the seventh day of the examina-
ton Mr.. Finch expressed his satisfac-
lion and Mr. Taylor was notified that
the stock would be taken over. A
check was given him for $4,000 and
with SCnator Nixon he started for Sal
Francisco. At Berkeley Taylor left
the train to pay a brief visit to his
family. on the first day Of November he
met Mr.. Nixon at the Croker National
bank and was given a check for ST.
1870, 900. In turn Mr.. Taylor handed
over 800 900 shares of stock, duly signed,
and in this simple manner was con-
summated the purchase of two great
mines. This was the largest individual
check the senator hau ever drawn, and
the first deal in forming the great
merger. He still has the Cancelled
check and it occupies a prominent
place on the wall of his private office
in the Nixon Nevada National bank
at Reno.