Los Angeles herald., 1910-03-07
COMSTOCK MINES
ATTRACT WEALTH
PROPERTIES OF FAMOUS LODE
WILL BE MERGED
HOLDING COMPANY ORGANIZES
At NEW YORK
Final Arrangements for Unwatering
Deep Workings and Operating
on Modern Economical Basis
Are About Completed


SAN FRANCISCO, March 6.-The
quiet tone which has ruled the Com
stock for many years has been sup
planted by a more active interest and
sort of undercurrent of belief that
the next few months will bring about
some sensational developments in the
matter of deep mining. For weeks
past there have been rumors current
on the street that something was about
to take place on the Comstock lode.
The first tangible evidence that any
preparations of Importance to the gem
eral market were under consideration
was on February 4, when the Chronicle
published an authentic statement that
a gigantic syndicate had formulated
plans to exploit the lower levels Of the
Comstock mines and that the requisite
move to provide for such an enterprise
had already been arranged for in the
eastern states.
1t was also shown definitely that the
Yellow Jacket, Belcher and Crown
Point properties on the Gold Hill end
of the Comstock were principals In
the proposed plan and that enormous
pumps were to be soon installed for
the purpose of unwatering the lower
levels The Ward shaft has been
opened and retimbered to the depth
OF 1850 feet, and the new pumps which
are being installed on the 2100-foot
level Will reduce the accumulation of
water in the lower levels to the extent
of 2.500,000 gallons a day. All the neces-
sary agreements have been completed
and the work will now begin in a few
weeks.
Produces Mostly Gold
This Gold Hill section produces
mostly gold and in the bygone years
it yielded over $100,O00,OO0 The Belcher
has paid in dividends to stockholders
over $16.000.000. the Crown Point some
thing over $12,000000, and the Yellow
Jacket over So, 10000 So much for the
prospective work on the south end OF
Gold Hill section of the Comstock.
on the north end there have also
been some very important and at the
same time substantial preparations for
developmental activities in the near
future. The fame of the great bonanza
of thirty-flve years ago was world
wide, and there are still many resi-
dents of San Francisco and the state
who remember the wonderful mineral
production of the time. II was the
cessation of work in the Comstock
mines. and when the work ceased the
water started to accumulate in the
lower levels
The water has remained there all
these years, but something over year
ago the knowledge of unexplored
wealth I'm the lower levels attracted
the attention of some prominent east
ern hnanciers. These capitalists inter
ested others In the enterprise, and
this was the basis of the active oper-
ations started to unwater the lower
levels. In the Virginia group. en-
bracing the Ophir. Mexican. Consoli-
dated Virginia, California and ada
cent properties there are large ore
bodies that have never been touched,
and the same Is true of the Yellow
Jacket, Belcher Crown Point and ad-
joining properties in the Gold Hill
group.
To Benefit Stockholders
Official announcement will be made
in the near future of plan by which
all these leading mines can be oper-
the benefit of the stockholders. In
general way it may be stated that
large and strong holding company is
planned, with a capital of about
s6.000.000. The several companies will
remain separate and intact. as they
are at present, and the proposed hold
ing company will exercise a general
supervision and at the same time pro-
vide for and develop the vast mineral
resources known TO exist.
After very careful examination of
the mines by some of the most eXpe-
rienced mining engineers and about
n years arduous work. Franklin Leon
ard jr. and a number of associates of
New York city have succeeded in Sc
0Ifnp control of nF
cally all the Comstock mines except
the Morrow group, and will combine
them into a gigantic merger of in
terests.
The details OF the syndicate have
all been fully arranged and the word
is now only awaited from New York
to make public the list of financiers
behind the consolidation. and the size
of the financial interests affected by
the syndicate. This formal announce
ment Will be made simultaneously in
New York and San Francisco.
More than $600000.000 having been
taken from the Comstock lode since its
discovery, the opinion has quite gen
orally prevailed that the vast store of
wealth was practically exhausted But
Leonard, Edward b. Sturges and the
other financiers at the head of the
new syndicate know differently by ex-
pert reports, and they believe that by
touchlng hitherto inaccessible depths
the properties can be made to yield
further stores Of mineral wealth.
To Form Syndicate
The plan in the rough is to form a
syndicate of the stockholders of the
group that competition and pickering
may be eliminated, and then to de-
velop the mines to greater depths,
using in the process the modern ma
chinery and methods that were NOT
known when the Comstock group were
making their largest returns.
Franklin Leonard refused to divulge
the names of either the New York or
San Francisco men interested in the