The Goldfield news and weekly tribune. [volume] (Goldfield, Nev.) 1911-1947, 1915-02-20
WH|TTEMORE ON
MERGER STATUS
PRESIDENT OF MERGER GIVES
OUTLINE OF VELVET TRANS
ACTION

T.. o. Wh1ttemore, president OF the
Goldfield Merger Mines company
and general counsel for the Clark in
terests in Nevada and California, has
given an interview in San Francisco,
outlining the Circumstances in con-
nection with threatened litigation
involving the Merger company and
containing information regarding
the operations of the Clarks in south
ern Nevada. To the interviewer Mr..
Whittemore said:
ITO fully explain the situation and
the things that led up to and
prompted the bringing of the suit
against the Goldfield Merger and
the placing of a receiver in charge
] will have to review some Gold
field history. Some years ago we
when l say we l refer to the Clark
interests for which I am attorney
found ourselves with a railroad on
lions of dollars and running through
q desert country. The business of
Goldfield had fallen to a most dis
couraging point. Having spent many
millions it was deemed advisable to
spend a quarter million or more in
an effort to revive Goldfield by deep
MIXING and incidentally our railroad
business. We investigated Goldfield
with the result that the Goldfield
Merger vas formed. We began the
most extensive work. The $250,000
originally placed in the treasury was
about exhausted when E. S. Van Dyck
began negotiations for the purchase
of the Velvet claim.
1--WE had done about 200 feet of
work in the Velvet claim bat : 1T
depth. We had not encountered any
re ptt)nd small values and no indi.
cations hat would lead us to 60 to
depth. In fact our minds and eff
forts were fixed on the deep work in
the main shat.
THE first proposition YVES to
lease the Velvet claim and this later
developed into a proposition to buy,
Our first offer was to sell for 500. 900
shares Of Jumbo Ex., stock If
which Mr.. Van Dyck was to receive
$4,000 shares as commission. 1
want to impress this upon you as it
has a bearing on n of the many
false rumOrs hat have been circula-
ted. was accused of receiving TO-
900 shares. 1t is absolutely false.
The commission to Van Dyck l will
explain. When the proposition was
made to sell the Velvet claim to the
Jumbo EX., people for 100000 shares
il was the intent of G. S. Sprague to
increase the capitalization of Jumbo
Ex.. from 100000 to 100000
shares.
This was due to the fact that jun
BIO Extension did not have the 500.-
coo shares in the treasury to deliv-
err to us. Mr.. S%prague's plan was
to give us 5000 0 shares and put
the remaining $500 in the Jumbo
ter he stated that he had gotten in
touct. with a great many Jumbo EX.,
stockholders and they all opposed
the pian and he did not think that
the necessary two-thirds vote of the
stockholders could be obtained to
increase the capitalization of Jumbo
Extension. After much work on the
part of Mr.. Van Dyck it was agreed
that Jumbo Extension should make
Is a cash payment of $4,000 and
/ 900 shares of stock. Now, in
1Emuch as Van Dyck had spent a lot
y time we felt he was entitled to a
proportion of the original commits
sion promised. Therefore, we gave
him 21.OOO instead of $4,000 shares.
Of this I, nor any other officer of
Goldfield Merger did not receive one
share as has been alleged. 1t was
Mr.. Van Dyck's just due as would
be the commission of any real estate
agent or stock broker who had
brought about a big deal.
Further, in evidence of what was
thought of Jumbo Extension at that
time Van Dyck sold his stock in the
market at about 25 cents a share. He
thought he was getting a good price
for it just as did we when we sold
the remaining 100000 shares when
the market was around 35 cents. You
must bear in mind that of the origi-
nal 171,0OO shares $1,000 shares
were given to Van Dyck as a broker
in the matter.
AS to any knowledge of the later
developed ore bodies in the Velvet
claim, neither myself nor any other
officer of the Goldfield Merger had
any knowledge. neither did c. S.
Sprague.
This new ore body is something