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Show WAY-RESUME WORK AT COS. COPPER MIS Suit Filed by Colonel E. A. Wall Has Been Postponed. MILLIONS IN THE MINE Officials Agree to Remodel Giroux Mill and Operate Property. Relative to the resumption of work by the Consolidated Copper Mines com-panv, com-panv, the stock of w'n!( h represents 93 p.-r Cent of the Giroux Consolidated Mines company's stock. Colonel K. A. Wall said yesterday: An action instituted by me in the federal courts, in und for the state of Nevada, against the Giroux Consolidated Consoli-dated Mines company and its hoard of directors socks the appointment of a receiver, who shall be empowered to ta'.-:e possession of the property, extract and market its ores and thereby there-by secure funds necessary to liquidate liqui-date the floating and bonded indebled-..ness indebled-..ness standing against the property of yir Hie company and tnus pie:-ive the property to shareholders from impending im-pending bankruptcy. From reports sent out to pnare-ho'ulers pnare-ho'ulers by Thomas F. Cole, president, and the hoard of directors, covering operations and developments for the y par '.)U) and 1011, ra c t s are disclosed dis-closed which show that there have been developed upon the property during those years and pieviously large bodies of rich direct smelting ores, which, ever since that time, have been, and now are, available for immediate extraction and ma ike ting redirect, practically without the expenditure expen-diture of a single dollar, except such as would he involved in extraction and marketing the ores. From the statement of metal values contained in these oics, as shown by the reports re-ports mentioned, a net profit of at least f 20 per ton could have been realized in the markets, upon all ores of the grade mentioned m the reports, assuming the price of copper at sea-hoard sea-hoard to be 16 cents per pound, and during' the recent and present prevailing prevail-ing high price of the metal these ores would yield a profit exceeding $-10 per ton. Mill on Ground. The company has located upon Its property a concentrating mill, erected erect-ed by the former or Giroux management,, manage-ment,, having a daily capacity to treat 5'i6 tons of concentrating ore per day. This mill, though comparatively small, is equipped with all machinery and appliances necessary and of the latest improved type to injure economic and effective results. The reports show that there is developed in (he property prop-erty lo.OOO.ouo tons of - concentrating ore", containing at least 2 per cent, or forty pounds of copper per ton, and, in addition, sufficient gold and silver to he equivalent In value to 1 cent per pound of copper contained, and, in addition, nearly 7,000,000 tons of ore containing 1.65 per cent, or thirty-three pounds, of copper per ton. At a recent conference held in this city with Edwin F. Gray, manager of the company's property, at his solrei-V solrei-V tatlon. and in the presence of a Mr. Snedaker, a large stockholder, Mr. Gray freelv and enthusiastically admit ad-mit ted that if the company's mill were operated upon ores of the first-named grade, that is, 2 per cent copper, and making liberal allowances for all costs of mining and treatment of the ores a ii' I for the comparatively low capacity of the mill, there would result a net profit of at least $-1 upon each ton of ore treated. He also slated that by recent developments with churn drills he had discovered very large bodies of ores of a grade running from 2 1 per cent to 8 per rent copper and thai the latest drill bote had perorated the highest grade ore, for a distance of twenty feet, and also that 1 75 feet in thickness had b"en penetrated containing an aver- ( frr of from U'-i per cent to 7 per cent copper, a nd the drills were still in similar ores, also t hat several other holes had penetrated this ore sufficiently suffi-ciently to determine its existence beneath" be-neath" a very considerable area of surface sur-face He also conceded that the higher grade ores could be reached, and made available for shipment by sinking a shaTt to a depth oi 3I0 feet end that ores of the grade mentioned should yield a net profit of more than 5-10 per ton, if sold upon the prevailing high price of copper metal. As a result re-sult of this conference, Mr. Gray, accompanied ac-companied by Mr. Snedaker. visited New York for the avowed purpose of consulting with and advising the hoard of directors of the Giroux and Consolidated ( 'npper M ines coin puny to take immedia te steps to rehabilitate rehabili-tate the concent rating mill and put U In operation, and also make uvail-.ibjo uvail-.ibjo for extraction and marketing the higher grade ores. A few days later Mr, Grav and Mr. Sued nicer returned tn this 'city, and the following day were rejoined by Joseph B. Cotton, vice president of the Giroux Consolidated Consoli-dated Mines company, ussocla te and chief legal adviser of Thomas F. Cole. Hold Conference. A conference was then held between be-tween myself and the three gentlemen gentle-men named, at which Mr. Cotton announced an-nounced that Mr. Cole anil others, representing the management of the properties, had authorized hi in to assure as-sure me that It was the Intention of the cnmpnnv immediately to proceed with rehabilitation of the concentrating concentrat-ing plant and lo do the things necessary nec-essary to bo done In order to make available :mv ores that could be profitably prof-itably marketed, and thereupon urged that in consideration of this assurance the litigation ponding In the Nevada courts should be dismissed. Upon my i refu -al to d ism iss the case without tangible results, it was then agreed Hint the trial should be postponed until July t in order that time conM ho had to enter upon a systematic plan for piaeinu the mill in operation. It being further nri.t erst nod that if eainest strp were taken.' without unreasonable un-reasonable deiy. to carry out the assurances as-surances thus given such fnrt her- delay de-lay in t he trial of the ease as tn ieht he ueccssa ry to pi ; i the com pa n v's plant in opera lion would be a ceorded. j Immediatelv following this enn-- enn-- fere nee, J. M, Callow, a nv t a Ilurgi - it and mechanical expert in ore reduction, re-duction, was employed by the Copper Cop-per Mines com pa n y to visit the proper! prop-er! v. examine the company's milling plant and furnish plans, specifications specifica-tions a n d est i ma t ed eot s necessa ry to pot the pkmt iti eonO.lion to treat re.ii tons of ore per dav. Mr. Callow, Cal-low, with tin expert, a r.-ordi v.:y visited vis-ited the properly and offered in writing, as I ant informed, to rehabilitate re-habilitate the old plant and put it in firs i -class working condition, having all necessary appliances for employment employ-ment of t he process of eon con t rat : on by oil Hot at iort. in addition to t ho method In former use. The price named for this wort; was ,7ii,rvH which proposition was further sup-I'U'menied sup-I'U'menied by an offer to in-Tense the pacii y of t he plant successfully to treat l'"i0 totis of ore per .lav. for art additional sum of ?::.v'nH or r alt,. -ether. 1 am also further advised that the proposal of Mr. Callow met the hearty approval of Manager Gray and that latV-r it was approved by Fresi-ont Fresi-ont iioynton of t lie Consolidated ' 'upper M i lies company, and that he gave ast.u ranee upon the day following follow-ing th? holding of i lie company's annual an-nual meeting. June 6; that the company's com-pany's mill would be put in suecess-I suecess-I ful opera' ion, treating l" .in tons of ore per day, within ninety days from thai time. Local papers, published a t Fly about tnat i 1 rue, a n no u need thai work of installation of the necessary nec-essary machinery and addition of new appliances for the company's mill would be commenced soon and t hat it was expected that the plant would be in operation within ninety days, (.it her t iian this, I have no infnrma-tion infnrma-tion as to the plans of the management manage-ment in respect to operations upon the property. Trial Postponed. However, in order that litigation should not . in any manner, hinder the company's operations. it baa been arranged between my attorneys attor-neys and those of the Consolidated Copper Mines company that trial of the case in the Nevada courts shall be further postponed until the September Sep-tember term of court. Of course, the management of the company, having promised to do all of the things which I have asked the court to do, in view of their previous failure, fail-ure, I have been greatly pleased to postpone the hearing of the case, in order that the relief, which I am seeking seek-ing in the courts, may be secured in a peaceable and more satisfactory manner, and which, if done, will leave no grounds upon which to continue the action in Che courts. It has been frequently urged by parties in interest and a statement published in some of the local papers pa-pers that the action brought by me fn the courts has hindered and prevented pre-vented the management from developing develop-ing and operating the property. This is clearly a misapprehension of the fact, because all that has been necessary nec-essary for the management to do, at any time since the commencement of the suit, to avoid .the consequences of the pending action, was simply lo make available to the stockholders the vast resources of the company's property, -when the action would necessarily nec-essarily fall ot its own weight, t In the complaint in the action referred re-ferred to, It was charged that more than 50,000 tons of direct smeltirig ore, that Is, ore requiring no preliminary pre-liminary treatment, had been developed devel-oped and were available for Immediate Imme-diate extraction and marketing, and which would yield a net profit of at least ?20 per ton, this estimate being be-ing based on 16 cents a pound of copper. In his sworn answer, Mr. Cole said in substance: "There may he SO.Ot'O tons of ore and there may be I'OO.uOO tons of ore of a net market mar-ket value of $20 per ton. developed in the company's property, but the company has no funds vith which to commence the extraction of this ore and no smelting or refining works with which to prepare the product for market." In view of the fact that the ores could be shipped to the valley val-ley smelters and reduced at a higher rate of profit to the company than they could he reduced on the ground, if they owned a smelter, and of the further fact that no mining company in this country owns or ever thought it necessary to own or operate a refining re-fining works, and that such works would probably cost from $7,000,000 to $10,000,000. it cannot be expected that this answer would be altogether satisfying sat-isfying to shareholders, and as to the tack of funds in the possession of the company with which to begin and carry on the extraction and marketing mar-keting of these ores, the complaint contains a proposal to furnish all money necessary to put the property upon a profit-earning basis, without any charge whatever to the shareholders, share-holders, except ' that repayment should be made only out of profits to be earned in the operation. I sincerely trust that the assurances assur-ances In respect to installation of necessary equipment to put the property prop-erty in operation will be put into effect ef-fect without unreasonable delay, but have no direct information as to the ( plans of the management in this regard. |