The Salt Lake tribune. [volume] (Salt Lake City, Utah) 1890-current, 1911-04-02
Jumbo Extension and COnsoli-
dated Companies Agree Over
VinegerOne Claim.
NOTICE SENT JUMBO
EXTENSION PEOPLE
Property Will Be Added to Con
solidated Holdings at
Good Price.

l.
Extension Mining company is mailing 10
shareholders statement regarding the
compromise reached with the Goldheld
Consolidated company over the Vine
eerone claim at Goldfeld This state
ment Will prove of interest TO the nu-
mcrous local stockholders OF each com
pany. and it here follows
A former report to the stockholders or
this company explained the apex litga-
tion pending between the Goldneld Mo-
hawk Mining company, one of the con-
stituent companies Of the Goldfield Con-
solidaIcd Mines company, and the Jumbo
Extension company during the year 1908
The report also explained the settlement
OF that litigation, made July 70, l9oS.
BY the terms OF that agreement the Con-
solidated company was granted the sole
right to mine and treat the ores, which
might be found In the Vinegerone claim,
a small fraction containing about two
acres, lying between the Red Top and
Miss Jessie claims Of the Consolidated
Tho agreement further provided that
after deductlng only tho cost of mining.
ing such ores. the proceeds should be d.
vided equally between the Consolidated
and Jumbo Extension companies.
At that time the existence of ore in
the Vinegerone was but prohlematical.
Beginning In January, 1909. however. de-
velopment OF the claim has been prose"
cutcd with the result Of exposing ore
bodies OF considerable magnitude.
New Terms Necessary.
The agreement OF July 25, 1908. was
be both difficult and expensive of per
formance. The only feasible course TO
pursue was. therefore. TO make an agree
ment between the Consolidated and the
Jumbo Extension which would supersedc
the old agreement so far as the Vine
cerone is concerned. Your officers have
had this In mind for over year. and
brought the matter before the stockhold- :
ers at the annual meeting. July Is. 1910.
The stockholders then and there author
lied the board Of directors to make such
compsny's interest IN the Vfnegerone
claim ms the board should deem best.
AS the result OF continued effort. an
agreement was at last arrived at on the
18th day of March. 1911. This agreement
provides as follows:
l. The Jumbo Extension agrees TO sell
its interest in the VineSerone 70 the Con-
solidated and the Consolidated agrees TO
:. The value OF the vinegerone claim
shall be ascertained by estimates made
by one engineer appointed by eithe;
agree, agree then a third engineer viii be
chosen by the two who shall exercise his
Judgment, basing the same upon the data
furnished by the two original engineers
and the decision OF any two will be bind
3. From the estimated value Of the
Vinegerone claim shall be deducted 80
per ton on ore adjudged to be present.
which charge covers all costs and losses
OF every nature and further deduction
Of $4,000 dollars, an allowance made by
the Jumbo Extension company on account
OF previous development work. and one
half OF the balance will be Immediately
paid by the Consolidated company TO the
Jumbo Extension company in cash
Engineers as Arbiters.
To carry out the provisions Of this
agreement your company has retained
Mr. Wiley Is an engineer OF the highest
reputation and very wide experience in
Important mining matters; lie IS rec.
of the United States The Consolidated
company has retained Alfred Burch OF
San Francisco.
upon the value of the claim will he
reached The undertaking is a difficult
one on account OF the character and
together too difficult a matter to deter
mine the value OF these ores, TO admit
of any thing more than an npproNimation
by your officers. Al no time has any
officer ventured an opinion as 10 the
probable value OF the claim The posi-
tion OF the directors Is simply as fol-
lows:
II your company were to mine and
treat the ore itself, II could obtain but
half OF the net proceeds OF the op-
Grafton. The value OF the Vinegerone
claim Is no greater than the actual net
value OF all the ore contained within 1t.
The Consolidated company proposes to
mine and treat the ore at a cost less than
could be done by your company and TO
pay to your company one half the net
value OF the claim in cash. In other
words. the Jumbo Extension should re-
ceive Just as mucn money for It's inter-
est in the claim under the terms of this
agreement as IL would receive II IL could
itself operate the claim under the most
favorable conditions. and, furthermore.
will receive the proceeds Immediately
upon the agreement OF the engineers In
stead OF waiting for the ore to be mined
and milled.
The rest of the property OF your COM
pany Is not affected by this agreement.
Tho Poleverde claim. adjoining the Cler
mont claim OF the Consolidated Will bc
operated on the same terms as hereto
fore. The GoIdfield Annex lease Is work
Ing on the middle portion of tins clalm
and is shipping ore Of moderate grade.
from which your company receives % per
cent royalty. No worl! Is now being done
on that portion of the property located
in the Diamordf1eld section.