OCR Text |
Show H' MINING AND FINANCIAL H Park City Cottonwood Alta Situation Merger H Speculations Important Strike in Utah H Mines Coalition. H Overhung as it is by clouds of doubt and un- H certainty, the mining situation on the Park City- H Alta mineral zone appeals to the weatherwlse as H lo den with important industrial and speculative H possibilities. As yet there is nothing in the news H from that section to excite the general public; it H is only the close students of the markets who H realize that some sort of order must evolve from Hl the present chaos and are awaiting eagerly for a H rift in the clouds to be first up with their dirig- H ibles, monoplanes and biplanes. The disorder of H present conditions is unmistakable. The Silver H . King Coalition, the biggest proposition in the H field, after passing several dividends and spend- H ing large sums in improvements, is about to try H out the capacity of Its newer ore bodies for sus- H tained production. It is also awaiting the out- H come of the trespass suit of the Silver King Con- H solidated now pending in the United States dis- H trict court and in which more than two million B dollars is claimed from the Coalition. Far reach- B ing results will follow the termination of these H two movements. H H Then there is the rumored Daly-West-Daly-On- H tario merger! Much of the matter published on H this subject has been inspired to test the senti- H ment of the public toward such a move and there H ii reason to think the merger has not passed H beyond the contemplative stage. In talking with H men learned in the lore of Park City, one gains H the impression that the unrevealed plan of the H promoters is to make the three properties men- H tioned the tail of an animal whose identity is M still undisclosed. In one of the "feelers" which H saw the light in Boston, it is suggested that the H merger be capitalized with two million shares, a fl million and a half to be held by the company. H Such a quantity of ballast would be absurd un- H less a voyage is contemplated in a much larger H ship. It may bo that the object in view is an H amalgamation with the Daly-Judge or the Coali- H tlon; or it may be 'the absorption of a number of H small companies that can be worked through the H Ontario tunnel. In time to come this tunnel will fl be the chief asset of the Bamberger companies. H Besides affording access and drainage to a large H area of virgin ground, it will afford water power m which, changed to electricity, will operate mills, B trams and compressors. The obvious advantage fl of the tripartite consolidation now under discus- H slon, would be the common use of a modern mill- H ing plant at the mouth of the tunnel and, con- H versely, the mineral resources of three mines H that have seen better days to feed the mill. A H close calculation by one who can calculate some, H puts the saving that would be effected in milling, H transportation and administrative expenses by a M joint milling and power plant at from 25 to 40 H per cent. M M Justly or unjustly the Daly-West, Daly and On- M tario are referred to generally as "has beens," WM whose condition is too well known to furnish the fl opportunity for a good gamble. While the public H feels that way about it the chances are not bright H for a successful merger. The chance to win that H incites speculation, would be created by the ac-H ac-H qulsltion of promising undeveloped ground. A H step in this direction is the deal whereby the H Ontario and Daly acquire 75,000 and the Daly- 0 West 50,000 shares In the new Thompson-Quincy E Consolidated (Company. The Little Bell, with 50,- H 000 tons of milling ore, ready for treatment and H another 50,000 tons in sight, has been, spoken of H as breakfast that would put new life into a com- bination of the "has beens." There is the Uintah Treasure Hill, Diamond-Nimrod and several more prospects whose development would keep up interest in-terest In any holding corporation. The opposition to the proposed merger comes chiefly from shareholders In the Daly-West. They do not object to a merger so much as to the basis upon which it is proposed to take In the constituent properties. In other words, they think their company is entitled to more than it stands any show of getting. The Little Bell has not been invited to come into the fold, and it is evident evi-dent that pretty good inducements would have to be offered to tempt the stockholders to come in. Taken altogether, the situation is ripe for the unfolding of deals and rumors of deals, every one of which will set the market quotations to jiggling and make a few honest dollars for those who are on the Inside or who happen to guess right. The Daly-Judge is the third important factor in the Park City situation. Lately its guiding spirits have come Into closer accord with the Daly-West on the drainage question, but still the Judge appears rather as the nucleus of an independent in-dependent combination rather than a probable participant in the Bamberger schemes. The vigor with which work upon the Snake Creek tunnel is being prosecuted is indicative of a desire to gain a freer hand in Park City affairs. While the Daly-West, et al., are reaching out in one direction direc-tion for the virgin territory, the Daly-Judge may be reaching out in the other that is, toward the south. Its Snake Creek bore may duplicate the money-making and money-saving advantages of the Ontario tunnel. Alta and the Big and Little Cottonwoods present pre-sent a collection of surface mines, many of which are making money from the production of ore running from $40 to $75 a ton. So far as present pres-ent necessities are concerned, the Cottonwood properties have nothing to complain of. It is the future that invites them to take heed and consider con-sider the ultimate inevitability of a deep tunnel connection. An enterprise of the magnitude re quired cannot 'be carried out by small companies and for that reason a process of getting together may be in evidence in the next year or two. Of more than ordinary importance, because it demonstrates the success of deep mining in the Big Cottonwood section, is the strike made last week at the property of the Utah Mines Coalition. Coali-tion. The depth at which it was made six hundred hun-dred feet is great enough to prove the true fissure fis-sure character of the veins and the continuation of metallic values to the deep. The ore body in the face of the tunnel averages about six feet in width at this writing and from two to two and one-half feet is of high-grade silver-lead ore. The remaining portion of the lode Is Worth about $25 a ton. This is prima facie evidence of a paying pay-ing mine for the Coalition company and the most A-gratifying A-gratifying development Big Cottonwood has ever known. t Charles A. Stoneham, M. A. Teague and the Boston and Detroit capitalists, who went through here two weeks ago on an inspection trip to the Calavaras Copper property in California, reached Salt Lake on the return trip Wednesday, and continued to inspect the properties at Tintic and elsewhere in which Mr. Stoneham and his clients cli-ents are heavily interested. The original plan called for a day at Blngha:i ind two days at Tin-tic, Tin-tic, but the affairs of the eastern gentlemen required re-quired their early presence at home and the schedule was altered to Milt their convenience. Mr. Stoneham was disappointed not to be able to give more time to Utah, as he considers this one of the greatest mining -egions in the world and he promises many good things in the way of ad- . vertislng and development. |