The Eureka sentinel. [volume] (Eureka, Nev.) 1902-current, 1910-04-02
San Francisco, California, March %, 1910.


EDITOR EUREKA SENTINEL,
Eureka, Nevada
Dear Sir-A statement of the conditions affecting the Eureka
& Palsade railroad is not only of interest, but is due to the citizens
of Eureka. The last dividend by this railroad was paid in 1883. 1
took charge of the road in 1897; the road went into the hands of a
Receiver in 1900, the stockholders were entirely eliminated and the
|b~ondholders took possession of the property.
After the receivership. there was paid out to the former bond
holders in the form of dividends, $4,000. In other words, the
total payment to the stockholders since 1883 has been $4,000.
The road was kept alive during a large part of the time since l took
it because of the business from Ely and Hamilton. Ely has ceased
to yield any revenue for all time and Hamilton has apparently so
far decreased its production as to cut little figure in the earnings Of
the road. The business is entirely dependent upon the work in and
around Eureka, and particularly upon the work of the Richmond
Eureka Mining Company.
An agreement was made some five years ago putting into effect
greatly reduced rates on ores. Without this business the road
would have ceased operations long since. Since that time, in an
effort to keep the property going, debts have been contracted and
the road is now owing upon a mortgage, $4,000, in round numbers.
1t has been impossible to secure the investment of any addi-
tonal money because of the inability of the Mining Company to
promise any large tonnage over any period Of years, and the result
has been that the property has had to live from "hand to mouth"
The rehabilitation of the road depends entirely upon the Rich
mond- Company and the other properties in and around
Eureka There is no probability Of the stockholders again putting
the property into shape to operate it.
1 have presented the matter to the Richmond Eureka Mining
Company and have handed them a copy of the report of Engineer
Condor, which shows the investment of $15O,OO necessary to put
the property in operation again. I have also offered them the prop
erty IS a whole without cost, other than its debts, until such time as
they can be reimbursed for all of their expenditures, and have
offered them a large interest in the property thereafter.
It would be possible, provided the Mining Company would
guarantee at least 300. tons of ore per day over a period of four or
five years, to re-fnance the road, but the rates on this low grade ore
are SO low that it takes a very large tonnage to repay the money
necessary to put the property in shape.
L am writing you thus fully that you may understand the situa-
ton and my utter inability to reconstruct the road under existing
conditions. just how long it will be before the Mining Company
signifies their intention as to what they intend to do, l am unable
to say, but 1 shall keep you fully advised, as believe the people OF
Eureka are entitled to the information.
1t has been my effort at all times to keep the road operating as
long as possible, because of the hardship that it would infict upon the
residents, and I am still extremely DESTROYS of seeing operations
continue. but because of the fact that there has been very little
profit from the property since 1883, it is impossible to raise the
funds necessary to reconstruct.
If the Mining Company had carried out their original inten-
ton of thoroughly prospecting the Richmond. Eureka mines in
depth in the effort to discover new bodies of high grade ore, and
had thew been successful, and was the ore being shipped to-day, the
condition would be entirely satisfactory, but there is really nothing
more known regarding the property to-day than there was five years
ago. and because of their unwillingness to enter into an any agree
ment guaranteeing any quantity of ore over any long period, the
operation of the road from day to day is all that can be hoped for.
Yours truly,
M. L. REQUA.