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Show Ju! Z 8 1958 DUB D , P K What's What end Western Mineral Survey Vol. 1; No. 81 O Sail Lake City, Utah Monday, June 23,X958 H q Lost Rhodes Gold Mine I Discovered Recently i By Bulloch Mines -- Petals Discovery of the lost Rhodes Gold Mine west of Moon Lake in Duchesne County, Utah, was announced this week by Mr. Ben H. Bullock of the Bullock Mine and Metals Corporation of Utah. Mr. Bullock stated that the mine was located by instrument test and through the use of an old buckskin map drawn by Caleb Rhodes. The map is owned by Mrs. Mary Sulser of Goshen, Utah. The mine was discovered by Mr. Bullock and his son, Vern Bullock, 100 W 960 S, Provo. In an interview with Mr. Bullock, he stated that the mine was originally discovered by Indians living in that area. Caleb Rhodes," he continued, was liason between the Indians and Brigham Young who was believed to have used the gold to mint money used by settlers in the Salt Lake Valley. The gold vein, said Mr. Bullock, is 600 feet in width by 2,000 feet in length in a contanct vein between porphry and quartzite. Operation of the mine will begin soon," he continued. Mr. Bullock also released the following statements, issued by Mrs. Steele, concerning the authenticity of the map. Goshen, Utah June 18, 1958 TO WHOM IT MAY CONCERN: the best of my knowledge the following is a true history of the Rhodes Mine Map, a copy of which I have in my possession. The original map from which I made this copy on paper was made on a small piece of buckskin about as large as ones hand and was owned by Ortiza Rhodes who was slain by the Indians and To Arraj Issues Injunction Against American Lite Insurance Company Milton J. Blake, Administrator of the Denver Regional Office of the Securities and - Exchange Commission, last week announced that Judge Alfred A. Arraj of the United States District Court for the District of Colorado, issued a preliminary injunction Founders American The against Life Insurance Company of Denver, Colorado (Founders) and Colorado Management Corporation (CMC) and their directors, officers, agents,- employees and attorneys, each of them. The order enjoins ithe aforesaid from further violations of Sections 5 (a), 5 (c) and 18 (a) of the Securities Act of 1933 in the offer, sale and delivery of common stock of Founders. According to the Courts Findings and Conclusions of Law: 1. Common stock of Founders is subject to subscription agreements (some of which agreements are held by Founders and, some are held by CMC) which do not unconditionally obligate the purchaser to pay for all of the stock subject to such subscription agreements. 2. Such subscribers in legal, practical and economic effect have a series of options to purchase stock of Founders which they may exercise by continuing to make payments under the said subscription agreements. 3. Such persons have to make investment decisions when they decide whether or not to make additional payments. - 4. Approximately 5 per cent of such persons are now residents of States other than the State of Colorado (although they lived in Colorado at the time of signing the subscription agreements); under the Securities Act of 1933 relating to such securities has not been filed with the Commission. The Court concluded in substance that the uses being made by the defendant corporations of the mails and means and instru ments of transportation in interstate commerce in receiving funds in payment for subscriptions and for delivery of the securities after sale, constitute violations of Sections 5 (a) and 5 (c) of the Securities Act of 1933. The Court further found that the defendants made false statements concerning the types of investments that insurance companies could lawfully make under Colorado law, and the success of investments made upon organization of certain insurance companies. The Court also found that other representations made to sell the said stock were misleading by reason of the omission to state material facts necessary in order -- New Homestake Uranium Mill Starts Operation Santa Fe, N. M., The Home-stake-Sap- 3. The subscribers could elect h TO WHOM IT MAY CONCERN: My stepfather, Frank Horsley, told me that he had personally seen Caleb Rhodes come into Price from his mine in the Uintah Mts. with a pack donkey loaded with a bag of rich gold ore on each side. That he had personally taken some of the ore from the bags and examined it with his hands. Signed and Witnessed at Goshen, Utah, this 18th day of June, 1958: Mrs. Mary Sulser Steele I am in my eighty-fiftyear Witnesses: Ray D. Steele Ben H. Bullock DA h 2-2- saw fit. in in w Mexico Partners Mill; not fake legal action which reasonably could be expected to result in judgements against subscribers for the said sum, or any portion thereof. 2. Founders could to pay or not pay the said sum, or any portion thereof, as they uranium ore processwith a capacity of 1,750 ing mill, tons daily, began grinding ore today, officials of Homestake-Sa-pi- n Partners, announced. The new mill, the third uranium mill to go Into operation in the Ambrosia Lake area, is located on State Road 53, just north of Grants. Ore for the new mill will come frtm Homestak? Sapin mines in Sections 15, 23, and 25, Township 14 N, Range 10 W, McKinley County, New Mexico. These mines were contributed to the partnership by Sabre-Pino- n Corporation. Homestake-Sapi- n Partners was formed by Homestake Mining Company, the general partner, with a 225 per cent interest, and Sabre - Pinon Corporation, the limited partners, with a 75 per cent Interest. Although ore from independent producers will also be processed in the new mill, there is no conflict or association with the neighboring Homestake-NeHome-stake-Sap- to make the statements made, in light of the curcumstances under which. they. , were and. are being made, not misleading. Among other things, the Court found that it was represented that as of March 10, 1956, Founders had assets described as subscriptions receivable valued at $1,206,468.22, which was part of its total assets of $3,551,992.83. Disclosure was not made that: 1. The subscribers were not personally obligated to pay to Fo unde Us $1,206,4681.22, or any portion thereof. robbed of his map. The Indians, then brought it to Price, Utah, and traded it to the Rhodes family. Living with the Rhodes family at that time was a young man named Jake Colbert who got it from a member of the family. My husband, Warren Sulser, quite some time later, secured it from Mr. Colbert and I became its owner when Mr. Sulser passed away. Signed: Mrs. Mary Sulser Steele I am in my eighty-fiftyear Witnesses: Ray D. Steele Ben H. Bullock In addition, it was represented that as of March 10, 1956, Founders had assets described as notes receivable valued at $1,773,756.-0- 0, which was part of its total assets of $3,551,992.83, when the fact is and the defendant corporations have been and are now omitting to state that: 1. Said notes receivable did not, and did not purport to, obligate the general credit of the makers for the sum of $1,773,750.00, or any portion therof, to Founders. 2. Founders could not take legal action which reasonably could be expected to result in judgements against the makers of the notes for that sum, or any portion thereof. Frontier Airlines To Start Grand Junction Service Nonstop authority to operate be- tween Denver and Grand Junction is likely to be extended to Frontier Airlines as the result of an inital decision made today in Washington, D. C., by William J. Madden, CBA hearing examiner in the Denver-Gran- d Nonstop Case. Frontier would be granted the authority on the basis of public convenience and necessity for a three-yeperiod. This inital decision is expected to be made final within the next fifteen days because it is an uncon tested case. Junc-tionti- on ar 3. The sole remedy of Founders in the event the maker 'of the notes saw fit not to pay them voluntarily would be to realize upon the collateral which had been pledged to secure the notes United Air Lines is also authwhich consisted entirely of stock of the insurance company which orized to fly nonstop service behad been issued soley in exchange tween Denver and Grand Juncfor the said notes. tion. United, however, has sus- - pended its operations into Grand Junction since the spring of 1956 pehding improvements at Grand Junctions Walker Field which would accomodate Uniteds large aircraft At the hearing held in Grand Junction on April 28, United did not contest Frontiers application for nonstop authority between the two Colorado cities. Effective June 1 Frontier will schedule a nonstop departure from Denver at 3:20 p.m. for one hour and forty-fiv- e minute to Grand Junction. Nonstop flight service from Grand Junction will leave at 5:30 p.m. to arrive in Denver at 7:30 p.m. Frontier also flies two other trip flights between Denver and Grand Junction with additional service to Pueblo, Gunnison and |