The Salt Lake herald-Republican. [volume] (Salt Lake City, Utah) 1909-1918, 1910-04-11
SECOND LETTER ON
MONTGOMERY MT.
No Intention to Freeze Out
Stockholders, Explains
Committee.

That stockholders may have a clearer
IDEA or intentions concerning the proposed
reorganized Montgomery Mining company.
the reorganization committee, which is
composed of Samuel Newhouse. M. M.
Johnson and H. E. Peery. has issued a
second letter to stockholders of the old
montgomery Mountain Mining company,
detailing briefly the history Of the COM
pany, what has been done by way of de-
Yeiopment and the committees idea of
future prospects, based upon the conclu-
sfons OF experts: The letter says, In part:
w hen large deposits Of rich ore were
originally discovered in the famous
montgomery Shoshone mine at Bullfrog.
me late u II: Peery purchased for a
very considerable sum of money, five ad-
Jaeent claims which were grouped and a
company known as the Montgomery
Mountain Mining company was organized
FOR the purpose of developing the ground
treasury stock was sold for develop
hleht purposes and development work was
prosecuted vigorously to the end that a
long, deep tunnel was run, which was de-
signed to tap the extension of the main
vein OF the Montgomery Shoshone NINE
When this tunnel had reached the limit
OF the property it was found that it had
not tapped the vein referred to on ac-
count of the change of direction of the
VEN on its course through the MontgOm-
cry Shoshone, at the same depth as the
tunnel
The funds of the company were ex-
hausted, and there was no treasury stock
About two years ago, after Mr.. Peery's
death, special meeting of stockholders
was called al which a large representa-
ton of stock was present and it was
voted unanimously to issue bonds to the
amount of 900 and additional stock to
the amount of $4,000 shares, to be given
as bonus to the subscribers of the bonds
or otherwise disposed of. No bonds were
taken owing to the financial depression
prevalent throughout the country at that
mining shares rendered 1t impossible for
the directors to dispose of any of the
above stock for development purposes.
Shaft 20 Tap Vein.
ION the advice of experts and with our
confidence In the merits of the property
still mistaken shaft was sunk in anoth-
er part of the property which was de-
signed to tap the ore body in the Mont
gomery ShOshone mine, which, If continu-
Gus on its dip, should be tapped in this
shaft. At the depth of 100 feet in the
shaft, a crosscut was run for some dis
lance and some values were encountered,
but not of high enough grade to consti-
tute commercial ore. Machinery for Oper-
ating this shaft was negotiated for, and
the property was surveyed and patented.
Taxes have also been paid, and every eff
fort made by the directors to protect the
property and guard the interests of the
stockholders.
1.-THE money for this work was ad-
vanced the company by the bank referred
to in our previous letter, and others, and
was used for this purpose alone, honest
ly, judciOusly and economically. There
we're no salaries paid any of the officers
of the corporation, and the directors gave
their time and talents for the interests Of
the stockholders, without compensation.
las stated in the former circular the
creditors pressed their claims and your
reorganization committee deemed it prop
er and honorable that the opportunity
should at least be afforded all stockhold-
ers, to avail themselves of the plan pro-
posed for the redemption of the property
and provision for sufficient funds to dem
Onstrate the existence of the Montgomery
Shoshone ore body in our ground.
I'VE, ourselves, are large stockholders,
and have sufficient confidence in the mer-
it's of the ground to contribute our share
IN the undertaking, and trust you will
not misinterpret our motives when we
seek the reorganization of the company
and ask you to join with US IN proportion
to your holdings. There is no desire on
the part of anyone to freeze any stock
holder out"