Show cash or stock for central shareholders 0 minority stockholders of the grand central have choice of two propositions c can n take cash or stocal in chief cons some tins titre ago the chief coni company acquired con rol of the giand central mine through the purchase ot of more than fifty per rent cent of the stock and a plan baa has now been outlined whereby the balance of the stock can be turned in either in exchange tor for chief on a basis ot of ten for one or for or cash shareholders ot of the grand central have a chance to get just as much money as col loose and asso elates clates got when they turned over the control ont rol nothing could be fairer than the plan which president walt er or fitch sr has worked out and which is outlined in the following letter to grand central share hold era ers since the purchase by my corn com pany of 0 the majority of 0 the shares of your company at the beginning of the year much study and work has been given to the method to ba be adopted in the operation of t the a grand central mine active mining work was commenced as soon as we had possession the ma workings working were found to be i in quite quit good shape but the mec mechanical haneal equipment quip 1 ment as well as the eaul oma 0 of f the same bame character underground under e d was found to be in some cas cases grou 71 aid d and ab solete and all of it rill red repairs and much of it bad had 10 be discarded en an the reports t a attached hereto cover in detail the expenditures that have already been made and which will have to be made at once as 8 soon as delivery can be had of the tie new equipment the general manager includes with his the report of the superintendent in which further de do tail tall is presented when we took over the manage ment mont of your company we found no working capital and it has been ne tie cosgary tor for our company to provide the money required to reopen your mine up to april 30 53 have been advanced to your company and as will be shown by the estimate of probable expenditures it may be necessary to provide approximately in order to manage the business safely and economically we find that the stock ot of your company is non assessable and that it would be necessary to reorganize it to permit of an assessment to pro i vide adequate working funds the directors of my company have agreed up to this time to make the feces sary very advances and to take in ex change the notes of the grand cen can aral company but they realize the possible danger to the business of the last named company in being in evolved in this ln increasing indebted ness nose and they deem it only fair that all the facts shall be submitted to ti your consideration and at the same time suggest that a possible solution of the difficulty may be presented lu in a proposition that is hereby made that the minority shareholders shall be given giten the same price tor for their shares as my company paid to the I 1 controlling owners namely per share and in order to meet possible objection on the part of some of the shareholders who may have pro pre forred to continue to hold their shares our directors have authorize auth oriz ed ad the presentation of the aeterna tive proposition of giving one of ifs 1 own shares for ten shares of grand central stock stockholders will be given until june 30 to accept these offers general manager cecil pitch fitch de tails expenditures considered abao cutely necessary within the next few months in order to secure maxi maximum muni efficiency as follows electrification and additions to hoist 20 ad dit lonal ional compressor unit and motor 12 general power supply 5 additional tramway equip ment meat 4 and additional under ground equipment 11 shaft repairs 15 surveying map ping geological examination and plotting 10 total 83 in addition to this manager fitch states will be required to give initiation to intensive develop ment meat work and efficient exploration expenditures of an additional 80 it is estimated will be needed to install in the near future a corn com plate pumping equipment when de rea hes the vater level development work is being done at the rate of feet per month development work done during the first quarter of 1922 and aft month of december during i period the mine was wag under least prior to the exercise of an option on stock control by the chief condoll dated mining company is reported ae as follows by the superintendent paul hilsdale Hll sdale A total of feet of work WAS done by the company exclusive of that done by lessees at their 0 own w cost ores aggregating to tons is were shipped which yielded after deducting smelting transportation and sampling charges 84 67 57 after all smelting railroad and ani sampling eam pling charges of 18 32 had been beani deducted an average per ton not value of 23 02 was left the net operating loss after pay ment of all charges was 29 not included in these were charges for equipment etc amounting to 07 involving an indebted nes ness s to the chief consolidated ali ing company of that amount and since the close of the quarter add lional expenditures have been made which have increased that indebted ness to 53 86 up to april 30 development work was done on the 1100 11 00 1300 and 2000 levels and reopening of old sible wor workings kings on nearly all levels but especially on the 1600 2100 and 2300 the reopening of the whize below the 2300 level was started and a raise from the 2360 stopa was commenced to facilitate deeper exploration by providing a more direct hoisting route to the 2300 it was found that the water has receded at least twenty five feet since the 2360 was abandoned so that this level is now dry sinking on the ore will be started within sixty days as soon as the reopening work has been completed the new power line was finished and the steam compressor replaced with an electrically driven one div ing a materially increased supply of air at a greatly decreased cost of op oration plans have been completed tor for the electrification of the hoist and the necessary motors ordered A new electric shaft signal system and mine telephone system will be installed within the next six weeks the handling of ore and waste on the surface has been greatly ac celebrated cele rated by the construction of a two way platform on the bin level of the head frame and by the addition of two new bins to the upper ter minal initial of 0 the aerial tramway the latter has also been entirely over hauled and repaired A 1200 toot foot incline track from the dump level to a point on the road to mammoth was installed and has greatly facilitated the handling of supplies especially in the case of such heavy equipment as transform ers are compressors etc A complete survey of all accas bible workings including slopes has been finished and most of the level maps are now complete A geology cal mapping is now in progress the information that will become avail able through this work will be of great benefit in future development work at this date there are employed in the mine and on the surface about twenty five company men and sixty different faces underground are be ing worked under lease to lessees there are now being hoist ed ad approximately seventy five tons of ore and forty to fifty cars of waste per day working one shift |