The Wallace miner. [volume] (Wallace, Idaho) 1907-current, 1917-03-22
DOUGLAS SHIPMENTS
WERE BIG IN FEBRUARY
ANACONDA FoRFElTs BOND But
STILL HOLDS THE
LEASE.

shipped I'd CdTiOduS VI oic ilohi 'i'0
Douglas mine, the aggregate dry
weight being 2,094,0O7 pounds, or lO47
TONS A statement covering these OPP
erations was received last week by A.
Wyman, secretary Of the Douglas MI
ming company, and notifying him that
the royalty Of SO per ton, amounting
to $3141, had been deposited in the
First National bank. This is the big
gest monthly record in ore shipments
that the company has made, and II
cars were available this would be rails
ed to a carload per day, as the COM
pany is now delivering so tons OF ore
from the mine to the railroad daily.
In addition to the large tonnage now
available above the main tunnel, the
company is reported to be meeting
success in opening up large ore BODY
on the level from the bottom of the
shaft, $50 feet below the lower tun-
mel.
Anaconda Forfeits Bond.
The Anaconda company took over
the Douglas mine under bond ana
lease, The bond was on a basis OF ~
cents per share for the stock of the
company, which represented a price
on the property of In round figures
1856, 600 Under the terms of the bond
the first payment of $4,000 was due
on the 18th of last September and
subsequent payments were to be made
In sums of $4,000 each every six
months thereafter until the purchase
price was paid. The lease was for
three years and provides for the pay
ment of So per ton, dry weight, on
all ore shipped from the mine This
lease has less than two years to run.
A short time prior to September 15,
last year. when the first payment OF
$4,000 was due, an attorney for the
Anaconda company came over and
asked for an extention of six months
on the bond, making the first payment
due on March Is and extending the
time on all other payments. This was
agreed to by the directors of the
l
Douglas.
No Connection Between Bond and the
Lease.
In discussing the extension with
the Douglas directors, the attorney for
the Anaconda company commended
| that the bond and lease were indie
pendent of each other; that he was
only asking for an extension of the
bond, and that his company would
stiu exercise the lease without regard
to the action on the extension of the
bond. This construction was wholly
different from the understanding OF
the Douglas people and certainly con-
trary to their intention in giving a
bond and lease on the property. II
was supposed that the bond and lease
were each dependent upon the other
and that a violation of the terms OF
either would forfeit both. That the
Anaconda company is acting on the
line indicated by its attorney is evil
dent by it's failure to make the pay
menL OF $1U,UUU On March 10, l1uS LOT
feiting the bond it held on the Doug
las Whether the Douglas company
will accept the legal construction
placed upon the bond and lease by the
4 Anaconda company without protest is
not known. 1t is probable that the
question will be submitted to an at
torney and action will be in accord
ance with his advice.
Assuming that the Douglas will con-
tinue to be operated under the lease,
Douglas stockholders will probably
profit more in the end than
| they would If the bond had been eX-
ercised. While the royalty is not
large, 1t win nevertheless amount to
a considerable sum at the rate Of pro-
duction that will soon be maintained,
and yet 1t will be impossible in the
short time 1t has to run to make much
impression upon the large ore body
that has now been proved. At the
end of the lease stockholders will not
only have had the benefit of the roy
atty, but they will retain their hold
ings In mine that will be capable of
paying substantial dividends for many
years. 1t has been intimated in Butte
that the Anaconda company is quiet