The Eureka sentinel. [volume] (Eureka, Nev.) 1902-current, 1913-09-20

So"Ao s@io, ouu are approximately as
follows:
Table "B"
Cost at foreclosure sale .............S "a. 900
Rehabilitation Of property. .......... rs. 200
Extra equipment ................. IS, 900
Additions, betterments, tc.......... Is, 900
lotai $500, 900
On the basis of this estimate the min.
ing company contends that the active
property investment of the Eureka.Ne.
vada Railway Company should not ex.
coed 5000. 900 for rate making o
for the reason that if the property had
not been redeemed, and had been al.
lowed TO remain in it, control that oper-
ations would have been esumed and
continued upon q property valuation not
exceeding $200,000
Thus far, due to inability on the part
OF both the mining company ant the
railway company to reach q satisfactory
agreement as to rates covering the
movement of ore. materials and supplies
between Ruby Hill and Palisade, the
railway has been rehabilitated for light
traffic only. IL has been since May 6,
1912. and IL now in operation between
Eureka and Palisade, Nevada.
1t is alleged by the company that the
cost Of the said rehabilitation amounted
to $57,976 plus $4.222. for attorneys
fees. which, when added to $50, S45, the
cost OF redemption. gives an actual prop
erty investment of $14S. 543. which has
thus far been made by the Eureka-Ne-
vada Railway Company. Therefore, on
the basis OF the railways estimate, sub
mitted in this case, it will be seen thai.
after approximately $1,000 600 more is
expended for bstterments and new
equipment. in order to rehabilitate the
property for heavy traffic between Pail
SADIE aud Ruby Hill, the actual invest
ment of the Eureka Nevada Railway
Company will aggregate s24s. 54S.
Upon the other hand. the mining
company has within recent years made
an investment for property, equipment
and development at the Ruby Hill mines
a~ggregating several hundred thousand
dollars.
1t is able to estimate by q very close
approximation that there is available
more than 800, 900 tons Of nine dollar ore
which can be mined aud shipped to the
Utah smelters. Ia addition thereto. the
mining company is hopeful that the ex-
traction of the said nine dollar ore may
result in the finding of ores which carry
a very much higher value, and in this
connection the mining company states
that il will undertake to unwater the
mines at heavy expense for the purpose
| of securing ores at the lower levels OF the
mine which. it is believed. have a value
of approximately $50 per ton.
The present rate maintained by the
Nevada Transportation Company cover-
ing the movement of nine dollar ore be.
tween Eureka aud Palisade is $500 per
ton, which includes q transfer charge OF
| % cents per ton at Palisade.
The rate which was formerly main.
tanned by the Eureka and Palisade Rail.
way and its connecting carriers bet ween
Ruby Hill, Nevada. and Midvale. Utah,
was g. 90 per ton, divided s1.S5 to the
Eureka aud Palisade Railway and . leo
to it's connecting carriers.
Added to this expenditure the mining
company alleges that the cost OF mining
is 50. so per ton and that the cost OF
sampling, smelling. refining and market.
ing mounts to $3. 80. making a total OF
$3.50, per .cton for cost of extraction.
transportation. reduction and sale.
From this it will be seen that there is
left as a margin for profit only 20 cents
per ton. 1t was urged at the hearing.
however, that the Ruby Hill ores have a
peculiar value for fiuxing purposes sep
arate and apart from the hgnres above
shown, but this was not clearly estao'
lished. However, from q purely com.
~parative view point. within the knowl'
edge of the Commission, it occurs to the
members thereof that the Ruby Hill
ores, while perhaps returning TO the
Richmond Eureka Mining Company q
margin of only 30 cents per ton proht,
are, nevertheless. not without SUD-
stantial value T. some other related
company. For example. the Richmond
Eureka Mining Company is owned ana
operated by the United States Smelling
and Refining Company. The ores
thereof carry q large percentage OF iron
and also some lead. They must. there
fore. have a substantial iuxing value to
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