Montana oil and mining journal. [volume] (Great Falls, Mont.) 1931-1953, 1937-07-17

ever go and look at the mine Then I began
to write to people In Helena and Butte. in
terested several people but before putting up
any money they would q matter Of business
precaution write 70 some prominent Lewis
town man and inquire about this man Wilson.
Then the deal would be off. In later years
in Helena I was shown letters received con-
corning me that would have good grounds
for criminal libel.
The first person to visit the mine was Harry
Kendall who later owned the great Kendall
mine in the north Moccasins. had owned the
Gilt EDGE eight years and had quite showing
OF ore and one day Kendall, who had seen
the local assayer make some assays on Gilt
Edge ore. said he would like TO see the mine
and II I would 90 along he would get horse
and cart and we would 80 over I agreed. and
when we got to the mine Kendall seemed
greatly astonished and said he did not EXPECT
to see a tenth Of the showing had. as he
had always heard I had nothing. He said he
was broke or he would ike to go in with me
on It, And further said If had no objection,
he would like 10 get some Of the ore to ex-
pertinent with and II g cheap way to work It
could be found he could get All KINDS OF
money from the east.
I told him to go ahead, and he and the
local assayer tried many methods but none
seemed to work II was Kendalrs experience
with the Gilt Edge that led him to believe
the Kendall was a mine. In the fan Of 1891
I sold a half interest in the Gilt Edge for
81 900 in money and work to Henry Munson
and Ed Anderson. two miners working at the
Spotted Horse InaL Winter the lDIEG o. Us
completed nearly 400 feet Of tunneling on
the mine which proved beyond doubt II was
good proposition. During the autumn OF
1892, 7 sent at their request, 100 pounds OF
ore to a firm in Helena whose name have
forgotten They had q new kind Of mill In
which they wished to test the ore
Later they wrote me their mill would not
work the ore but there was a man there, H
s. Shepard who understood the new cyanide
process and further stated that the ore would
work fine with that process. Shepard went
TO Great Falls and ORGANIZED q company
headed by the late T. E. Collins and j. I.
DOC" Armington. who at that time were re-
spectively president and vice president Of the
First National bank Of Great Falls.
IN February 1893, Shepard came to Maiden
and after a visit to the Gilt Edge mine, took
a bond on 1t from my partners and self In
the early spring the company came on and
BEGAN the erection Of reduction works
townsite was plated also
Times in Fergus county we're at a very low
ebb financially. The panic was on and the
Spotted Horse and Maglnnis mines had both
shut down some months before. There was
hardly a dollar in sight in Fergus county.
while banks all over the state we're failing
nearly every day From later developments 1t
was learned that Collins and Armington in
some of their private financial speculations
had withdrawn their accounts at their bank
and were in a rather pTecarious position, the
board Of directors wanting to know, How
about it?" At the end of the first months
run the mill made a fine cleanup Of bullion
which was shipped to the Cascade bank Of
Great Falls. When payday came around at
the mine, Mr.. Collins was on hand and ex-
planned that while the company could and
would pay II necessary, 1t would be great
and highly appreciated accommodation If the
merchants and workingmen would wait for
their pay till next month.
why Mr.. Collins. that will be perfectly all
right" replied the creditors, seemingly glad
to help the company out. For the next TWO
months the formula was the same.
But with the arrival Of the fourth payday
and no pay in sight, somebody have FOR
gotten who the frightened sheep was-got
scared and placed an attachment on tne MIL:
AS sheep will do, the whole bunch followed
the leader Everything the company had was
attached also the mines which we're only
bonded and not liable for the companys oepts
But the Lewistown lawyers told tner cnents
the miners were liable, and men / had tried
to interest in the property few years pe1ore
we're loud in their boasts OF now they Woulo
own and operate the mines. Some OF them
said all that was necessary was TO Keep wilson
broke and he could do nothing.
The Gilt Edge Mining company at this time
owed $780, 900, an amount that could not nave
been raised on government bonds anywhere IN
Montana at that time. Collins and Armington
BY use Of the mines product for four months
now had themselves pretty wen squared up
with their bank, and made overtures TO the
Gill Edge company's creditors with view 10
going ahead with mining operations and
IiouidatinE the company's indebtedness as
quickly as possible by using the whole product
Of the mine to that end But the large creators
had obtained a court order placing AusIln
War; a Fergus county bank man, on the
mining property as receiver. War; ran tine
mill a few days, handed the workers some
cigars but no pay, and went BACK 70 lewis lewis
town and reported A meeting Of the creators
was called and an ARRANGEMENT made whereby
the Bank Of Fergus county was 70 operate
the mine, pay all claims and then own the
property.
The scheme appeared very beautiful but was
for IauictnWm. They knew there
was no law that would allow them to take
over the mines belonging to myself or part
ners for the company debts But they thought
we didn't know 1t.
one day during a court recess, the lawyers
for the creditors were talking Of how the
town would prosper when the bank got 70
operating the mines Judge Dubose, VINO was on
the bench reading looked up from his book
and said, Gentlemen, you are building on
wrong premise, you can't take the mines, the
mines belong to other parties.
1t was as though bomb had dropped into
the ranks of Lewistown'S legal profession.
have ever since had a soft spot in my heart
for Dudley Dubose. Had he sided with the
Lewistown bunch. it could have made me lots
OF trouble The courts action brought matters
to a standstin.
In the meantime Collins had been negotiat-
ing deal with a New York man named r.
A. Ammon, whereby the latter was to or
ganize q compay in New York that would
take over the property, settle the Gilt Edge
companys debts and operate the mines. AM
mon organized the Ammon Stivers Mining
Co, and came out to Gilt Edge with large
roll Of one dollar bills. Ammon's Major Hoople
tax together with the judicious placement Of
small amounts from his roll, did much to
foster the idea that there was lot OF dough
where this came from.
Ammon talked so glibly Of how he was going
to square up everything and have the mine
running in ship-shape style In a short time,
that most people regarded him as a veritable
Santa Claus. A few, however. we're not so
sure. And one man was little impressed
that he gave Ammon black eye. Ammon fin
ally got the mill going and was turning out
bullion at a fair rate, but he paid nothing on
the Gilt Edge company's debts and as little
as possible on his own. On pleas Of making
improvements in the milling Of the ore he
had solicited several large sums Of money.
But he made no improvements.
One day when was at the office, Ammon
who was in a jubilant mood, told me he was
working both ends" This meant, Of course,
that he was taking both the mines product
and the company's money for himself. He had
paid the last installment on the Gilt Edge
mine and taken the mine over. But he only
had g bond on the Chickadee, which was my
individual property, and I was therefore an
xious TO see the enterprise a success. It could