Show OLD MINES UNITED Whom Natur Joined Man Cannot Keep Asunder COMSTOCKCALIFQRNIA CON Consolidation Agreomant Is Signed by Diroctors I Stock Is to Bo Exchanged Share for i Share but Each Company Will I Pay Its Own Debts Papers have been signed by the directors di-rectors of the California and Comstock companies operating at Park City which Insure the consolidation of the two properties The action of the directors di-rectors Is l of course subject to the action ac-tion oC the stockholders but as a majority ma-jority of the stockholders rcirard such a course with approval there will be no trouble on that score Under the terms of the contract each company will settle its own debts and the stock will be distributed share for share among the stockholders The capitalization of the united companies to be known as the ComstockCallfor nia will be 600000 shares In order to keep its part of the contract the California Cali-fornia will levy assessments to pay off the indebtedness now hanging over the property The first assessment of C i j cents per share was levied by the directors di-rectors yesterday It becomes delinquent delin-quent In thirty days and the stock will be salable In sixty days It will take about C cents more to clear up the deficit and this will be collected by a later assessment probably In three or four months The Comstock is Involved to about the same extent as the California but some treasury stock remains which will It IB believed be sufficient to meet the debts This consolidation has been expected In mlnlns circles for some time It was the logical outcome of a situation that seemingly had no other solution It was charged that the Comstock had penetrated far Into California ground Litigation was threatened and only the financial condition of the California Califor-nia prevented an appeal to the courts at the time Last month after the election or the new Comstock directors negotiations looking to a fusion oC Interests were becun In the course of the negotiations negotia-tions a Joint examination was made of the workings of the two mines which demonstrated conclusively that the Comstocks best ore bodies were over the California line This was sufficient lo make the Comstock directors and stockholders willing to consolidate p The nnnualNncetlng of the California stockholders Is scheduled to be held on the second Wednesday in November and the proposition will be voted upon at that time unless as It may happen a special meeting Is called sooner By the terms oi the consolidation the Comstock is to have the appointment oC four and the California of three members of the directorate To equalize equal-ize the representation the Callfornlaria will be permitted to name the secretary secre-tary of the new company Until after the annual meeting the California will co to no expense save that necessitated by the employment i of a watchman The National Bank of Park City has begun proceedings to foreclose on the property but It is thought that thcne proceedings will bet be-t llIJed when the asseosment Is announced an-nounced At any rate there will be ample time In which to settle the liabilities lia-bilities and redeem thu mine from the purchasers of the debts It is only fair to the directors of the California to say that they have done all they could to extend the time of payment and avId an assessment but this was found to bo Impossible Operations will be continued on the CorrstocU without cessation The great necessity now is to extend the development develop-ment and block out enough ore to keep the mill supplied with ore Large mineral min-eral deposits arc In evidence in both mines hut the development work Is very insufficient When the mills of the Comstock Com-stock and California ar > Combined un der one roof they will have a capacity of SOO tons and It Is recognized that a large supply of ore must bo prepared for ex traction before the mill can be profitably onerated Both of the properties involved In this deal are old mines The California was incorporated on a group of four claims in iSSi The claims had been worked for twenty years prior to that time Judge I v I Snyder the present head of the company was one of the original hicor porators The charter provided that all stock should be nonassessable In time the management got Into debt and a critical period tvas reached when the stockholders were In danger of losing their property It was then that Judge Snyder performed the feat of turning a nonassessable into an assessable cor I poration The company was incorporat Ill under the laws of Nevada and all the stock transferred except COO shares I The claIms are developed through twos y two-s the lower one 1500 feet long wIth GOO fccl of drIfts and the upper tun nel ISO feet In measurement with 1500 of slopes and drifts The latter has I opened up immense bodies of low grade ore carrying values In sliver lead and zincThe The Comstock Is also composed of a group of fom calms which vcre worked from the early days of the camp They were originally Incorporated as the Uln tab but the control passed into the hands of Mr Dusseldorf who organized e the Comstock A tunnel was driven into the hill luoo feet 700 feet being on the vein A shaft was put down 276 feet I below the tunnel level and a crosscut run to the vein A drift at the end of the crosscut was run for 1500 feet openIng open-Ing several ore bodies ocly three of which have been properly opened up In order tto develop the chutes tho crosscut will have to be enlarged and better < tramnMng facilities secured Underground surveys show that tho California and Comstock veins divide In the latter property and tho one that has been worked Is almost entirely In California Cali-fornia territory As they go down the ore bodies seem to come together and there is reason = to believe that they will ultimately follow the example of their owners jiml consolidate into one great lead Some encouragement Is found In the fact that small streaks of copper have been recently coming into the rock on the lower levels of the mine Both the Comstock and California I mills are practically new and the machinery ma-chinery will give good service for years to come Naturally it will be much cheaper to operate all the machinery together to-gether than In separate buildings |