Show FOR PARTITION OF MINING GROUND some startling disclosures in suit of king con king coalition in federal court ALLEGED RICH BELOW 1550 LEVEL in silver king consolidated does not exist of 1500 one month for operating expenses only was for labor manager gets thursdays salt lake tribune A sensation was sprung sprang in the federal court thursday afternoon in the partition case of the silver kill king consolidated mining company vs the silver king coalition mines company when president solon spiro of the consolidated acknowledged that lie he lad had made official statements regarding property conditions on oil information furnished him and not from his actual knowledge of conditions at the mine this was brought out in in re sponge to a question put by judge dickson counsel for the coalition company who had just finished quest questioning ionin mr spiro relative to existing ore bodies in the joint properties mr spiro had testified that he did not know of tile existence of any lar large lare e ore deposits of a commercial commercial grade and judge dickson wanted to know by what means he found large and valuable ore deposits I 1 developed and discovered as appeared in hio sworn statement in the original bill of complaint statement based on hope in substance mr spiro te testified 9 that there were no DO such deposits of ore exposed at aws time and that lie he had in mind ore bodies to be developed later by means of the system dyste of operations now in force he also admitted that lie he had made statements to shareholders in a cirou circular letter of recent date on information given him either by letters or telegrams he said that this information came from G W browning secretary of the consolidated company if P dark clark or mr mara this letter lie wrote while in the east and in the closing paragraph he made statement in conclusion I 1 am pleased to convey the good news that the ore channel below fifty level is responding wonderfully well in opening up this ore bodies of great richness and increasing magnitude are disclosed no such slope exists mr spiro upon cross exam testified that no such as indicated in tile alie letter is in existence and yet after tour four and one half years of development work in the property involving tile the expenditure of and during which time ore to the net value of had been extracted lie he said baid that lie had placed an enhanced value on this property of from to by reason of this de velo piment work kilough lie he had no personal knowledge of any ore deposits of a commercial grade now exposed in the these sc workings ownership of properties the suit is for partition of properties owned by companies the properties included are the ve vesuvius and andes claims claim in which both cor corporations 0 r a 21 own an undivided one half a f interest the delaware of if which three fourths is owned by the Consoli consolidated consolidate dat ed and one fourth by the coalition the ouster custer of which one third is owned by the I 1 consolidated and two by I 1 tile the coalition and part of ladies drum no I 1 and mayflower no 1 of which three is owned by the consolidated and one fourth by tile coalition the deepest workings is in the andes claim being down about 1600 feet from the surface the main main klaft being 1100 feet in iiii depth A is sent down from this station for the remaining renia dist distance anee most of the workings in the entire estate is in the andes claim the main tapping the extreme western end of the ground by numerous drifts crosscuts cross cuts raises and other workings tile the ground is ia opened up lip in all directions for almost its full length in the testimony te tile the consolidated companas comp anys engineer said that there were inaccessible workings which lie knew of in the property but which lie was unable to inspect because the ropes and ladders had been taken out from tile many presented in court the ground appears to have been opened up tip in all directions with a small area left for further development mining men there many attorneys mining engin cers and mine owners were present when master in chancery Cli ancery J W christy Cli risty started to take testimony in this case yesterday morning the silver king coalition was represented by dickson elus ellis ellis and while howat and macmillan and critchlow Crit ehlow and Bax barrette appeared for the consolidated president david keith general manager thomas kearns director W 11 ferry superintendent george D blood and surveyor C P brooks of the coalition company together with president solon spiro secretary G IV W browning and several engi engineers of the consolidated consolidated were present every one present was interested in the ease case and at times the testimony was of the greatest importance frank anderson surveyor for tile consolidated company was the first witness lie he showed a map of tile workings which lie he had surveyed and ex explained pla ined the various workings lie had inspect ed lie ile explained that there was considerable development in the property which lie lad not surveyed and told of a number of workings which wore were inaccessible while lie was underground secretary Is witness G IV browning secretary of tile the consolidated was on the witness stand most of tile morning and a portion of the af afternoon ter his testimony showed thai tha thirteen ore shipments had been made from tile andes ground since the company had first entered that territory and that thai this was the only ground round from which any ore had been marketed this product netted theaon suli soli dated during this period an expenditure of approximately had been made of the total amount expended by tile alie company lie he said that had gone to the gen 0 ral oral operating expense or lie lc termed overhead workings not in the andes proper ile he said that there lad had been long ions intervals between shipments there being as much as nine months intervening ter between one shipment and the succeeding one his accounts itemized operations covering a period from april 1908 1903 to september 1 1912 during the present year ac cording to Brownings Mr Brownin s testimony the consolidated company lias has expended more than in mine operations and the ore shipments lie valued at a little more than 1400 his secre showed that in tile the andes the total operating op rating expenses recorded each month exceeded ceedee the item of expenditure for labor from three to four times during one month he the hie labor expense wl was while the total for tile the general operating expenses for that month was month that work was begun on the andes claim eh aim the labor charge was iia 3 and the general expense m 91 fails to explain judge dickson in examining secretary browning tried to got get him to make an explanation of the disparity bet between wen labor and general expense charges but mr browning faid aid lie he entered the items a as they were liander him by general manager spiro and officials of tile mine operating force he had entered an item of paid solon spiro the president and general manager ol 01 the company for mine timbers tim bera upon cross examination secretary browning was unable to tell whether those timbers were over ever delivered at the mine and explained that the payment had been made upon presentation of tile claim by mr spiro president of the company signed all vouchers including this one later in review reviewing the aing accounting made by the secretary jud judge jude 0 e dickson asked mcbrown in ing whether or not lie he would be surprised to learn that his accounts showed an item of more than 2900 for a little more than one and onelia oner half lf miles of surveying underground workings s secretary browning testified that eliat he did not know what the company paid for coal delivered at the mine nor how many tons were used he said that pres president spiro received a salary of a month but bat did not think lie ire visited the mine as offen oft eni as once a month as lie he was away a great deal of the time the secre record showed that powder caps and fuses had cost the company or at the rate of per foot for work performed the surveying lias has cost a little more than 2000 per mile machinery maintenance is charged 0 at or about 8 per cent of the sum total of all money expended for development solon spiro testifies president solon spiro was the last of the three witnesses of the day and was on the alie stand when court adjourned yesterday afternoon lie ile will be called again this morning when court r olivene convene at 10 lie ile testified that lie ile lad had been engaged in mining m 1 i ning Z from nine to ten ye arsand been interested in other properties in in the camp he said that he was general manager of the little bell 2 mining company he estimated the value of the andes andea claim el ahil comprising about eight acres at previous to the time that any development work had been done on tine the ground lie ile based this valuation on his knowledge of prices of properties comprised in the little bell group though lie said the dista distarce distan uce ioe between the alie little bell and andes property was from one to one and one half miles lie he explained that lie he lad had been int informed formed flaat the montezuma claim adjacent to lie andes had been purchased by tile coalition i company for upon cross aaion lie admitted that tile montezuma ground contained the rich jewel which lie had heard of but had not examined until some time later on a number of points regarding in operations and other matters pertaining to company affairs president nt spiro was not prepared to answer the questions put by councel forthe forthe defense lie ile said just before adjournment that lie was quite sure that lie he had the letter or telegram M containing tile information relative to tile the statement made to shareholders in liis his letter in which lie announced that in ill opening up tip this ore bodies of great richness and increasing magnitude are being disclosed the above a case has attracted mile much attention in salt lake thre days of this week the taking of testimony being concluded yester da afternoon the witnesses witness cs for fo alie coalition company were vere thomas kearns geo D blood I 1 clias chas P 13 brooks W A wilson and J B laggart the andes claim is the bone of contention tile preponderance predon derance of evidence showing that development work depreciated rather than advanced its valuation september shipments for the month of september ears cars of ore were shipped the park city mines aggregating m tons the shippers were silver king 0 coalition 2389 tons daly west 1461 tons daly judge 1781 tons grasselli chemical co tons E J beggs 43 tons new merw york bonanza 87 tons silver king consolidated 32 tons frank dailey bailey 36 tons clias chas moore 65 tons little bell 33 tons barry coxe tons ton ontario smith leafers leasers lea tea sers 36 tons toils demand for stock the salt lake telegram of last monday said quite a demand for silver king coalition st stocks acks was evinced again aguill this morning mornin at tile the opening session of the exchange for some time there lias has been an clem element ent who have been gathering up this stock quietly and when the price advanced sharply they retired from the field for a time A sag followed and they again appeared upon the scene and wore were able to pick up a few hundred indred In shares only small lots are offered and brokers cli engaged a med to do the buying art are very vary beautious the dorily information to be gleaned is that the company is outputting putting a large tonnage and that big biff profits tire are being accumulated another merger park city is starting off this fall with a little merger all its own the west st louis claim and the john the revelator claim are bein being united in a company to be called the revelator consolidated mining co tile the articles will bo be filed with the secretary of state this week there will be 1000 shares in the incorporation the par value is fifty centor a capitalization of 3 00 of these shares 1000 0 will be left ini in the treasury for development purposes the president and treasurer of tile company will be joseph E galligher of this city tile the other tors are carl W scott 11 1 1 B blades samuel hair and 11 II T coleman file two last named were in in salt lake city monday campt completing eting the incorporation papers for filling high mark for silver thursdays s herald republican silver on local settlements advanced yesterday to 64 1 ac an ounce oance one of tile highest points reached in years the beginning of 1912 the priece of silver ranged c t I 1 around abou arou n d an a R ounce or loe lower tile the average price in 1911 was just one year agotha price was 54 3 acan ounce ikast ladt year utah produced ounces of silver this year the production should run considerably sider ably over that this rise of 10 points in the prie price of silver means the addition of to the metal production of the state pro provided voided such a high rate is maintained for tile year at any rat ethe average for 1912 will cut many points above the averages of the several proceeding years Y cars the tremendous demands demand for tile the white metal coming from india and china are the main causes for the unusual prices of tile past several months and the rapid movement upward of tile the past few weeks the ontario mill gradually Gia dually things are getting in shape at the ontario mill and it will be but a short time now before it will be running to capacity general manager thac 1 P holt is perfecting every defeet defect and a steady grind will soon result at the mine joe piya has at present but a few men at work but it enly caly awaits the final adjustments at the mill to put a large force to work in extracting tr the fillings front from the various various some cars were hauled down from tile mine for treatment this week shipments silver king daly judge daly west barry coxe total cro crosscuts Cross s cuts superintendent dick pelto of the old daly was among the mining men who visited in salt lake the first of the week J E jennings the expert mining man was in the park tho first of the week inspecting the workings of the old daly superintendent E LT albot of of the daly west was a visitor in salt lake monday an and d tuesday of this week foreman wm win carson of the daly west was a visitor to salt lake lahe the first of the week to see tile the sights 0 and visit with his family superintendent peter harrington hari in of the thompson quincy was among the thousands who visited in salt lake the first of tile week A letter ua vii received this week from J 0 schultz So hultz formerly bookkeeper book keeper at the grasselli zine zinc plant but now with the black hawk coal company at black hawk utah the gentle man says there is an immense immense amount of work going on in in that locality and that the construction st company already lias has steam shovels and other equipment on the ground for the building of the now new railroad and the coal company is installing electric haulage aug system cutting machines etc in that locality there are simply mountains of ore black hawk will be the main town with central power plant water sy system stern round house railroad sl aps ops etc nir mr shultz is Lal lalain yin charan char 4 1 the immele continued on page five t ma I 1 fes wis AND MINING j z I 1 f 6 9 4 1 r eilif 66 4 1 6 41 i i 4 e 6 6 d 1 0 4 k continued from page one amount of work now under way 1 the gentleman expects to visit in tile tie park some time this month to see his new baby boy ind and to arrange 0 for moving his family to the n new ew fields |