Show THE NORTH STAR SCANDAL revelations as to conditions in tonopah mines astounding the tonopah To nevada camp has te received a severe setback as the result of disclosures concerning manipulations of north star stock and falsified reports of mine conditions it is admitted by the old officials that the mine is gutted of payable ore and that reports as to tonnages ton nages profit amount of ore in sight in the mine etc signed by officials were false it is alleged that the management comprised of herman zadig a tsan ban francisco broker J J mine manager and james heney mine foreman manipulated the reports and then took advantages of the situation in the markets to further their own interests the facts seem to be that there are only a few hundred tons of ore available according to reports of reputable engineers the actual operating heads have resigned and J K chandler formerly of the macnamara has taken charge with james mur phy formerly with the belmont as foreman As giving perhaps the best lineup of the situation among a mass of printed matter we use the following from the tono pah miner of september 27 since tonopah was a mining camp no such shameful scandal has smirched smirch ed its splendid reputation as the disgraceful story of the north star mine which reached a climax this week in the astounding announcement no of the management that the exposed ore bodies were exhausted and production had practically ceased this condition was hinted at for several days but strenuously and ly denied by the local management although it is now evident that the true condition of the was privately furnished to a certain san francisco stockbrokers stock brokers by some person closely associated with the property no individual in tonopah was more astounded at this statement than the representative of the tonopah maner who since visiting the mine some weeks ago has relied for weekly reports of its condition upon the local manager who was always most optimistic about the showing in the mine land and who up to friday last declared it was looking fine in all its workings in obtaining reports upon the various properties in tonopah To the tonopah miner relies upon the statements made by the different superintendents of the properties visiting the underground workings at occasional ai onal intervals when convenient to the management years of experience in the camp with such men as frederick bradshaw john kirchen W H blackburn S H brady A H lawry J sherwin and others has demonstrated that the statements made are absolutely reliable in every respect and for this reason it was not unnatural to place confidence in the statements of thra the north star manager for it is manifestly impossible pes sible to visit the underground workings of every property every week even it if this were convenient to the management at the time when the representative of the miner last visited the north star mine the east drift did not show any commercial ote ore body on the side and in the face were stringers of promising ore and a had been started from the east drift below the main and was down about six feet on a body of very good grade ore was in progress above the 1050 foot level and at that time nineteen feet long were being put in place in the proving that the vein was of that width between the foot and hanging wall it was stated that the raise that was put up from the 1050 foot level to the foot level was all in excellent grade ore and the assumption was that inasmuch as the ore was of good grade in the bottom of the drift on the foot level and had been drifted on for over feet on the 1050 foot level there was a large tonnage of ore available between the two levels feet high on the dip of the vein possibly not more than tons have been scoped above the 1050 foot level and now the information comes like a thunderclap that the mine is exhausted today it is difficult to ascertain the exact truth of the condition of the mine and the miner has demanded statements from hermann zadig president of the company from J J manager and obtained also a statement from W B daniels mining engineer at one time connected with the nevada wonder mining company and who ho was engaged by president zadig to examine the property mr zadig wired on september according to letters and telegrams received by me up to monday I 1 was of the opinion that the were looking well ore being extracted same as for the past three months that the toad had started in rich ore I 1 was dumbfounded at receiving information inform aton through outside sources on monday that there was waa no ore left anywhere you had better see and have him verify this statement he ds as in charge of the property and may be able to explain situation as I 1 cannot make it out you can see mcdannels and tell him I 1 have no objections to his expressing his views regarding all matters to you on that day mr mir stated there are only about tons of broken ore and mixed porphyry in the which will vii require very careful sorting to get one shipment of payable ore the vein above the 1050 foot level has decreased in value in the to about 6 a ton with a very large admixture of porphyry making it unprofitable the richer ore on the foot level did not go down 30 feet and it is doubtful if any more payable ore can be broken in the above the tenth level the first from the tenth level has been filled up with waste and a new started near the end of the ore shoot in the eastern drift this shows some good ore we intend starting work on the branch of the vein on the tenth level also on the tramp vein and will also sink a on what is known as the martha vein and are also going to start an underhand from the foot level on a small block of rich ore exposed in the bottom of the drift it is most probable that no shipment from the mine will be made during the coming week mr W B daniels stated 1 I have been through the property and do not think that the show over tons of profitable commercial ore the mine has been gutted in the most disgraceful manner and there are only two small blocks of the vein left between the 1050 and foot levels there are not fifty tons of shipping ore in sight some bome ore can undoubtedly be extracted but the tonnage is problematical no attempt has been made to develop ore ahead of extraction and no prospecting for other ore bodies on or below the dihe 1050 foot level has been undertaken the mine has been gutted this is the disgraceful story the latest happening in a series of scandalous events which have worked the conduct of the companas comp anys affairs by a body of stock jobbers whose notorious operations of a similar character for forty years on the comstock have made that camp the shame of nevada not only have the companas comp anys affairs in san francisco been disgraced by shameful market manipulations of the stock aided by the issuing of false reports but the local management has exhibited either gross ignorance of the underground workings of the mine or pitiable inability to realize the condition of the and general incompetence ceto to manage a mine it is absurd to suppose that this great feet long suddenly encountered an immense decrease in i values and also a porphyry intrusion in a single night the condition must have been apparent for several days especially when it is admitted that the last ore shipped only averaged 11 a ton there is no excuse for a failure to carry on development work when nearly three months ago a new 10 drill compressor plant was installed which has not yet been put in operation the occasional impoverishment of ore bodies and the intrusion of porphyry into the veins is no uncommon occurrence in tonopah mines anines therefore no blame is at aa cached to anyone for this occurrence but it was the duty of the manager to continue prospecting and development work and open up ore to replace that being scoped the stockholders should at once appoint a committee of investigation and demand a report upon the property by one of the most reputable mine managers in tonopah they should insist upon more efficient and more energetic management above all they should at the next annual meeting express in no unmistakable manner their disgust with the present directorate and elect reputable men who are not stockjobbers stock jobbers and whose only intention is to operate a mine for the purposes of market manipulation of the stock the miner has on previous occasions severely criticized the north star management and again condemns it as irresponsible incompetent and untrustworthy in every respect the miner refuses to believe that the mine is exhausted but is confident that proper intelligent and energetic development will wall uncover other ore shoots investors in tonopah stocks should not permit this one instance of disgraceful mismanagement to affect their opinion about the other properties in the camp in the management of all of which except those controlled by zadig co they can place the most implicit confidence the miner voices the opinion of tonopah when it states that hermann zadig and his confederates should be ominously ignominiously ign driven drivon from the directorate of every company with which they ar are connected 11 |