The Salt Lake tribune. [volume] (Salt Lake City, Utah) 1890-current, 1912-10-04
SOLO|V SP|RO UNDER
FIERCE CROSS FIRE
Admits He Has Never Verified
Glowing Representations to
Shareholders.
BASED ON HIS HOPES
Engineer Jennings Says fe
Doesn't Know Any Pay
Ore Bodies Exist.
BASED ON HIS HOPES

tefday morning III tnc iSucio' So"A W ="
testified that he had not visited tn
Silver King Consolidated p1opertie
since his return from the east abou
September 5 this year. He made n
effort to ascertain whether or not tn
conditions as he had reported TO share
holders in his circular letter we're tru
or not. He stated that his last visit Il
the property was early in July of thu
wear. and that he had issued his state
meuts to shareholders on the informa
tion furnished him. He presented il
evidence letters and kilograms which
were filed but not read. In his testi
monv he showed that he had made nj
effort 10 ascertain whether or not MI
information was correct as to existing
conditions at the property, and thai
he had not sent out any corrections tt
this statement
While testifying that he had ne
knowledge of any stope IN al
ore channel "of great richness AND
increasing magnitude being disclosed, .
as described in his letter to sharehold
ers he reiterated that he had acted
upon information while in the east
and that the letter was issued by him
carly in August as result of this III
formation.
Letter to Shareholders.
This letter is one to shareholders OF
the Silver King Consolidated Mining
company. in which 1t is stated that at
special meeting Of the stockholders it
was decided TO increase the capitaliza-
ton 100000 shares or to 100000 shares
of 81 par value. Relative to the OBJ
ject of increasing the capitalization, the
following Is taken from the letter to
the stockholders:
Approximately 100, 900 shares only
Of the proposed increase will be re-
quired TO carry out the companys
plans. The company Will frst offer
said shares for sale TO its stockholo-
ers pro ratn to their stock holdings
in said company at par Underwriters
have entered into an agreement with
the company whereby any deficiency
in subscription of payments by the
stockholders will on demand OF the
company be made up by the under
writer's. II Will enable the company
To sink it's 1S00-foot main operating
shaft to a greater depth and thus
open up system Of The largest. rich
. est and most significant ore deposits
In virgin territory. Also it will en-
able the company 10 become the
owner of an extremely valuable group
Of mining properties adjoining its es-
tate where ore bodies of commercial
value arc already developed with
proven apex right
Draws Glowing Picture.
In conclusion. 1 am pleased to con-
vev the good news of the ore channel
below the 1850 level responding
wonderfully well. In opening up this
stope. ore bodies Of great richness
and incrcas sing magnitude are being
disclosed
Judge Dickson asked Mr.. Spiro where
there we're any ore bodies below the
1850 level Of "great richness aud in
creased magnitude" In response Mr.
Spiro said. 'That is yet to be deter
mined. We have stringers of ore lead
ing to the contact
At this Iuncture there was an ex-
change Of quick repartee between the
counsel for both ompanles. Mr.. Spiro
was then asked if all ore which was
profitable had been taken out RS far
AS ground had been developed. IN reply
he said that il had.
Spiro Evades Question.
Judge Dickson, counsel for defense
asked Mr.. Spiro where on or beneath
tho surface, 20 his knowledge, was the
nearest ore body to the Silver King
Consolidated shaft. This question was
repeated again and again, as Mr.. Spirc
seemed 10 evade the original question
Mr.. SpiTo stated that so far as he
knew, the only ore was in the Andes
claim, aud that he could only give the
existence of other deposits from "sus
picions.'
Mr.. Spiro was recalled in the after
noon session and asked as to the costs
Of the running of drifts, crosscuts, up
raises, wines, etc. fIe explained that
they had been at a very heavy expense
in doing this work during the year
and could only approximate the cost!
of these various workings.
E. P. Jennings Testifles.
Edward P. Jennings, mining engineer
who appeared for the Silver King Con
solIdated, testified as to his opinion
regarding the enhanced valuation Of
the AIDES claim by reason OF the de
yelopment work done by the Consoli
dated company. In substance he sait
that assuming the valuation of th,
property was s25, 900 prior to any de
velOpment work, he believed that as ,
result Of this development work by til,
Consolidated company it was now rea
sonably worth $4,000
Mr.. Jennings was again called at tn.
close of the afternoon session and ex
planned that two fissures had been de
veloped and the existence OF the con
tact demonstrated, He said that b.
did not know of the existence of an
pay orc deposits, but that his estimat
Of the valuation of the claim had beel
made on the basis of what he consid
cred the possibilities Of ore exposure
as result of this work.
James Mara, superintendent of th
Silver King Consolidated, was mex
called. In response to questions h
said that all ore Of sufficient value +
make it profitable for extraction ha
been sent to the market He cxplaiue