Montana labor news., 1937-03-25
Continued from Page 81

sides Delng a gOOu electrical lilSuld-
tor. It can be put to many uses and
its development in this state is only
| dependent upon the energy and bust
ness ability of the men who are ac-
tive in the industry.
Hard to Finance
1t is admitted that it is more diff
cult to finance a mining property
today than it has been in the entire
history of this nation, due to the
recent passage of federal security
laws. Montana's mining association
has lead the country in the attempt
to have these laws modified, so that
mine financing and development
may proceed during the interim that
ensues in becoming acclimated to the
new laws. There is no question but
that the new financing laws will I'LL
timately be of great benefit to mine
financing, but it will take a number
of years before this becomes effec-
tive. And, strange to say, the new
social security act, will, indirectly,
play a larger part in primary mine
financing and the ore equitable
distribution of wealth and employ
ment than is now realized by most
people. However, that is a subject
by itself and a large one and I hope
to have the opportunity of discussing
that on the Montana Radio Forum
some time this year.
In spite of the difficulty of financ-
ing, a number of Montana mining
ventures, starting with practically
nothing except a good property and
men of courage have managed to
bring to fruition successful ventures
in a number of counties in this state.
Phillips County Mines
Phillips county gold mining has
been much in the limelight during
the last few years, although n
would never expect to find gold in
an area which is predominatingly
prairie land. However, there is an
uplift there known as the Little
Rocky mountains, a short range and
not very high, that contains some
good gold and silver deposits. The
regeneration of the mines of that
section are due to the late Charles
Whitcomb who also was credited
with the finding of the mines there.
A few years ago he and five bust
ness men of Butte and Helena, took
over and started operations on what
is now known as the Little Ben
Mining Co. They paid for the mine
out of the first two cars shipped and
now have a 150-ton cyanide mill
pounding away. They have paid
dividends at the rate of go cents per
share per year and have a good bank
balance. In the early part of 1885
Whitcomb and a Butte mining engi-
neer took an option on the control
ling interest of the Ruby Gulch
Mining Co., which owned a large
low grade gold property on the east
flank of the Little Rocky mountains.
They invested $4,000 initially, struck
high grade ore, out of which they
paid the option money Is months
| before it was due and also built a
mill and power plant. The mill has
a capacity of 300 tons per day and
the operation is now the largest gold
quartz operation in Montana. 1t is
possible that the company in 1887
may double its present plant and
output. There are now So stock
holders in the company, most of the
new stockholders being affiliated
with the two banks in Helena.
Jefferson County
In Jefferson County, the Basin
Montana Tunnel Co. still is the
largest operation and a very profit
able one with the higher prices for
lead and zinc which it produces. The
company ended 1886 with a large
cash surplus, it is said, and every
thing else being equal it would not
be surprising if the company entered
the dividend class in 1887. In spite
of the good showing that the COM
pany has been making, the high Of
ficials of the company, in reports to
stockholders seem to go out of their
way for some reason or other to
give the impression that the COM
pany is not doing well.
In the same district the Morning
Glory mine and Crystal and Basin
gold-fields, Ltd, are steadily oper-
ating, the latter having shipped sev-
eral cars of high grade ore during
1886 with promise of even better
results in 1887, as quite a lot of de-
velopment work is being carried on
at the property, in accordance with
recommendations recently made by
a well known geologist.
Placer Operations
Several large placer operations are
going on in Montana, the largest of
these being at Gold Creek, Virginia
City and north and south of Helena.
The Gold Creek Mining Co. and
Yuba Associates + operating a gold
dredge, with capacity of 1000 cubic
yards per day, on ground formerly
owned by Pat Wall, near Pioneer,
several miles southwest of the Gold
Creek station. The company paid