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Collection: Newspapers > Nevada City Nugget

January 15, 1934 (4 pages)

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of . ear rom} rily @ 1aft out the . . ‘will do better. for every property on which the gov. “developed This is Nevada ONLY Hometown paper. It supports say mar gana nar naan scribe for it? worth while. Do you subCity’s Newsthings Nevada City Nugget is a Member of the United Press evada ay Nugget And California Newspaper Publishers Association t aohie Your Hometown News. paper helps build your community. Readers and j advertisers -makeit a . good builder. VOL. VII, .No. 20 The County Seat Paper NEVADA CITY, CALIF ORN IA The GOLD Center MONDAY, JAN. 15 1934 ‘Mining Assn. To Ask 2 r illionLoan Fund — v “Committee e Named o Draft Resolution ‘While the meeting of the Mining Association of California, adopted a eeneral résolution, at Saturday’s all day conference in. Sacramento, favoring a $250,900,000 grant of credit to the gold mining! industry, the resolution will be redrafted by a com‘mittee meeting in San Francisco this week. Much opposition to asking the Federal government for assistance, deyeloped. The resolution the Mining Association by elected presedient. Harry Sears. of Angels Camp shortly after a lunchson in which tie Alta Californians had joined: the Mining Association in Hotel Senator. At once a debate for and against government assistance to miners-was inaugurated. H. RR. Plate of the Spring Hill mine led the opposition to the resolution. He called attention to the fact these billions of .borrowed funds which the government is lending in its battle for recovery will have to be repaid and that children and grandchildren of those now living will still be paying the was presented to its newly ‘ huge debt. Others declared that the gold mining industry, under the Roosevelt administration is doing very well and, with the gold at $34.06 an ounce, It was argued that ernment would be willing to loan money, private Gapital could also be found for.the same purpose. President Harry Sears, point, however, in: answer to. this contention. He stated that too often when a man, or group, had developed a property to a point where it was fairly well proved, and needed secondary financing to provide the necessary equipment for production, -private capital stepped in and took over the entire property giving the man who had’ spent his time and money little or nothing for his interest. The final resolution is expected to ask the aid of Senator Hiram Johnson and Congressman Harry UL. Englebright of this city ,in obtaining favorable action by Congress. Along with the resolution; President Sears. proposed to send a complete plan for the administration of °the fund which the mining industry will . ask of Congress. The line of cleavage in the mining interest on the resolution, as the dis. eussion developed; ducing g who own old miners opposed to those prospects or properties in nancing. The content to leave * while the liberals pointed to almost every other industry (notably have partly need of. ficonservatives were well enough alone,” the need of the gold, and the need of more jobs for the unemployed, as abundant reason for asking the sevelt administration for a $250,000, 000 loan fund. The morning session was devoted to the election of officers and minor GOLD OUTPUT ’33 2,435,091 OUNCES WASHINGTON, Jan. 15,—The Treasury announced Saturday that domestic production of gold in 1933 was 2,435,091 ounces, valued at the mint price of $20.67 at $50,337,800. This represents a decrease of $288,200 from the preceding year and compared with a ‘peak production of $101,035,700 in 1915. Silver production. in 1933 was estimated at 22,141,130 ounces: At New~ York’s ‘average price for bar silver of 24% ‘cents the silver. production was worth $7,638,690. The 1933 production was ja 1,839,643 ounce decrease. I California was the biggest gold producer in 1933 with 565,426 ounces, followed by South Dakota, with 508,513 and. soa ate with 418,332. resolutions. -HarrySears was elected president of the association, Geo. Starr having refused to accept the office for a second term, owing to the fact that he is president of the NaMining Association. J. C. Kemp VanEe was re-elected secretary. Charles L. Gilmore, who presided at the morning session,.was retained ‘as attorney for the association. During the morning ernor James Rolph Jr., was a guest, and made a short address, in‘ which he declared himself ready to do everything in his power to further the interests of the mining industry, reminded the mining men that them their reinsurance. tional session GO6vand he had obtained for duction in compensation The committee named to draf final resolution which wil ward to Washington follows* Segerstrom. of Sonora, chatxw a PR; Bradley of Greenville, Walter W. Bradley, state mineralogist; Charles E. Hudson of San Francisco, George W. Starr of Grass Valley, Charles L. Gilmore of Sacramento, M. E. Buckner of Yreka, Rex Goodcell of Los Angeles, George Peltier of . Sacramento, H. N. Plate of Grass Valley, and Harry Sears of Angels Camp. Nevada City mining men attendman, O’McCraney, Gordon 3etties, and Arthur Hoge Jr. made one . ARGONAUT MINE FIGHTS U.S. GOLD, HOARDING ORDER SAN FRANCISCO, Jan. 15.—What promises to be-a bitterly fought contest over the Federal antigold hoarding law and gold price fixing was opened Saturday by the Argonaut Min‘ing Company, owner of the Argonaut mine at Jackson, Amador county. In a complaint filed in Federal Court against Secretary of the Treasury Henry Morgenthau Jr., and H. H. McPike, United States District Attorney, the company seeks to restrain the officials from prosecuting it unindicated the pro. farin. ing) receiving government assistance, . 200. . Government offe der the antihoarding regulations. The according to the com. plaint, is the outgrowth of a con. troversybetween the: company and the Government over the price to be 7171 June and case, ; paid for ounces of gold minea 1 in May, July: At the time it was offered . Treasury, according to the complaint, = 3 . the price as fixed by 'tion Finanee Corporation, was $34.-. 16, which was demanded by the company. On -the -ground that—ithad—been mined prior to August 28, expiration of: the period of grace, given gold hourders in an executive . } order by. President Roosevelt, the red the old price of $20.67 an ounce. ~ . ingness to compromise, according to the complaint, but suddenly dropped the negotiations. The company renewed its offer to sell at $34.06 an January 1, last, when it was rejected placed the gold ina San Francisco bank safety deposit vault. “ounce and for hoarding resulted, the complaint says.” The penalty for 000 fine or hoarding is $10,10. years in also would twice the Government, if victorious, have the right to exact value of the gold involved. Federal. Judge Louderback a temporary restraining order an order to show cause returnable before Judge St. Sure January 22. = o—}. CHAMPION. TAILINGS \ OPERATES C. A. Anderson ie partner of Marysville, who have a\lease on‘ the Champion mine tailings, have suc,chinery and will start operations this week. , . creased, ing at the conclave were Byron East. : . ores, the Reconstruc. : , 12 dredges) . two-thirds of the State total. + three . trom 1,000 to 10,000 ounees, and’ 1933, the, The Government indicated a will. A threat to prosecute the company : ‘the job of clearing off the brush and the trees on the flat top of Wet Hill. . prison for, each official of the company and the! issued . and . nected with the i Commerce, but-it was only when the ceeded in assembling all ‘of their ma. EMPIRE STAR OUTPUT OF GOLD 100-000 OUNCES. The value of the gold, silver, copper, lead. and zine produced in California in 1933, in terms of recovered and recoverable metals and with gold reckoned at the statutory price lof $20.671835 per fine ounce, is esi timated at $12,473,351, according to J. B. Knaebel and H. M. Gaylord of the United States Bureau of Mines. i This estimate compares with a total lyalue of $12,066,750 for the output of the five metals in 1932. In terms of quantity the output of gold -inwhile that of silver, copper, and lead was less than in 1932; output of zinc was nominal. GOLD In 1933 California maintained its # leading position among the goldproducing States, and the year’s out{put of about 592,400 ounces was roughly 23,233 ounces more than the 569,167 ounces mined in 1932. The value of the 1933 production, calcu-} os . through December would add approxlimately $1,971,600 to the value of the 1933 gold output and increase . the value of the State’s production of ‘the five metals to about $14,445,000. Newly mined gold was marketed four different sets of regulaat varying prices, succesunder tions, and sively during the year. 12, gold was sold by producers to. the, Mint at the statutory price of $20.671835 per fine ounce. From August 12 to August 29, gold-bearing concentrates, precipitates, and ;amalgam—but not bullion—could be exported and sold at the world price. . During the period from August 29 outta October 25, newly mined gold was accepted at the Mint by the Govvas ase which acted as agent for the producers in disposing of the metal at approximately the London price. Under the Executive order of October 25, 1933, gold was accepted by. the Mint for sale to the Reconstruction Finance Corporation at varying rates, officially determined, which have in the main been somewhat higher than the London open market price and have ranged upward from $29.25 per ounce. The Grass Valley-Nevada City trict continued as the leading ductive area, and the Empire Star Mines Company, (Ltd.) at Grass Valley, was the only company in the to produce more than 100,000 gold. Only 10° companies disprostate ounces of \ had outputs exceeding 10,090 ounces . to the . each; these 10 companies (including 380,400° ounces of gold, or companies had outputs ranging thes ed for nearly 82 per cent of the gold} throughout their lives. Until August — gold-dredging companies operating } produced approximately . early . oro 6 i ‘ nealty . about 352,700 ounces in 19338. Be-, [T'wenty-} m IRTEEN MEN AT WORK ON SAILOR FLAT GRAVEL Flat H. J. Burkhart, of the Sailor Mine, states that thirteen men are
now employed at the mine repairing ditches, pipe relaying and: repairing the line and will soon have all in weadiness for hydraulic operations. q Under the management of Edward "Bickel and. his late father, a boarding fhouse, office, and two or three modjern cottages ‘were built and hydrauSlicking started when they ran short Not water. All obstacles seem to have ‘een overcome and the mine be placed in operation in a short time. produced together about 103,100 ounces of gold. The.33 companes, each with a production \of: more ‘than 1,000 ounces, together accounta hey mined in California. during 1933, onsible for the increased gold proof the State, since the in= not be regarded as primarily resduction er ae legal coinage rate of f ‘mines was more than sufficient to ac32 pe oe ee pee ene poe ‘count for the increase in the State about, $12,245,995. Using the world Duk One 2 few naw. proausete price and the Reconstruction Finance Be cs substantial ontputs: i Corporation price from August / Ecompanies’ (comprising Eproducers, and 5-that started or sumed operations in 1933), each with an ‘output. of 1,000 ounces or more, made a collective gain over . 1932 of 52,100 ounces; 12 regular producers that in 1932 each yielded more than 1,000 ounces registered in 1933 a collective decrease of 41,fd “000 ounces from their 1932 output. more than accounted for the net two groups, showing that the new producers were unable to offset the declining productivity of several of the older lode mines and dredges. The inability to increase greatly the duty of plants already operating at capacity, coupled with the mining of ore of marginal grade during the period of high gold prices, probably accounts for the relatively small increase in output, in terms of ounces, at most of the leading mines. During 1933, three old dredges were and three new ones commenced digging. Twenty-two boats were in operation during the year, and they produced about 190,800 ounces, or approximately one. third of the State’s gold ‘output. In 1932. the output.of gold by 22 dredges was 188,830.89 ounces, valued at $3,. 903,481. Small-scale. placer mining along the rivers and creeks contniuea during-the year, but, as in 1932, the such operations both and ; returns from iin the aggreate on the average . ; were relatively very small. . SILVER . The production of silver ifrom 493,533 ounces in cause of a better average price—. (Continued on Page Four) Dirt Flies On Nevada City’s New: Airport Work on Nevada City’s airport began this morning with 25 CWA workers alloted by Fred M. Miller, in charge of county CWA projects, to Nevada City thus avails itself of the fund set aside by the Federal government for civie aviation improvement and airport construction. The site on Wet Hill in years past, has received) the endorsement ‘of aviation experts and engineers conU. S. Dep! ent of Federal government in its battle for . recovery offered funds for -defraying the eosts. of labor, that the realization of Nevada City’s Chamber of Commerce project became a _possibility. Through the energetic and shrewd nagemcnt of Mayor R. J. Bennetts, chairman of the fairport committee, . title was sufficiently cleared and all obstacles overcome, “to . ; CWA forees to . this morning. i Fred M. Miller this morning stated that 55 men have been alloted to .the work and these. will be employed ; as fast as they can be used advantageously. Two contractors ped with bulf dozzers are at Mr. Miller work can be completed by February 15th which is the present deadline for CWA activities, though there is a probability that work of this kind ‘may be continued for another month or two. Edw. C. Uren is in active charge of the engineering features of the enable the undertake the work equipwork. ation engineer to give his advice concerning special features of the work, thority on mining T. Nilon, at his home on Nevada street. Several new mills commenced Qp. 13 regular; re. gation, tie old Companies in the first group gain of 11,100 ounces between the ‘thrown 1 support of the ‘ decreased . 1932 toj CARS CRASH AT gine of the coupe back several inches, is of the opinion that the’ work, but Mr. Miller has asked the! aviation headquarters at San Fran-/} cer. Ww. cisco to send to Nevada City an avi . scene. Called To Nevada County’s most eminent-aulaw, jurist, public. ist, and good neighbor, Judge Frank . this morning passed away Judge Nilon, born and Nevada City, was a life long friend of Fred Bradley recently also born in this city. youth the two men were intimately associated as students in the Nevada City high school and in mining near reared in . } . . deceased, During their Washington in the Spanish mine. This deep friendship persisted Young Nilon studied law and shortly after graduating from college ‘eration, and many old properties i was elected district attorney of Ne4were being developed or were under\ Y@da county, serving from 1888 to 9 rae * roe ‘examination. . This activity, “neces? 1892. He was one of the most vig orous and _ successful prosecutors . ev er elected in the county and during this\ time won wide recognition as ‘creased, output of a few established . °™ orator who could move his audi‘ences FR. laughter or tears. In 1896 he was chosen Superior j Judge of ‘Nevada county and served BKighteen j for 12 years He then engaged in practice, chiefly mining litiand ecame in time’ the state’s foremost authority on mining , law. He was married to Miss Grace Morgan, the daughter of John T. Morgan. Three children blessed the union, F. M. Nilon, who was killed in an automobile accident a few years ago, William Nilon of San Francisco, and FLOOR LAID IN SKI CLUB FOR BIG SNOW FETE Twenty members of the Ski and Lions clubs yesterday did a big days work at the club house. A floor of 1200 feet was laid in the loft, for private ,; the barn dance, which will be one idle, } of the delightful features of the big snow carnival February 3 and 4. A double stairway was built from the entrance to the loft and a railing of slabs erected around the dance floor. An orchestra platform was constructed above the dance floor level, and except for pine bough decorations and other greenery the club house is practical readiness for the now. in big event. The Lions club of Grass Valley has itself enthusiastically to the Ski club, generous of and its memtheir and energies in completing arbers. have been time carnival. rangements for the snow STREET CORNER an Indian, with his in a papoose driving from the Galt bridge out Pine street Sunday ning when he decided to turn into Clarke street. He did not see a coupe loaded with wood, in which Mr. Yarbrough and his brother were coming down Pine street toward them. Johnson’ turned almost’ in front of the Langman home, when . } both ears crashed with terrific force, . wrecking his car and driving the enP. W. Johnson, wife and infant baby basket, were moraccording to witnesses. Johnson was severely shaken uj and received cuts and bruises on his face. The baby was knocked unconscious-and it was sometime before it came to. Yarbrough’s brother was thrown against the windshield and received a deep scalp wound —and bruises. Dr. W. W. Reed was called and rendered first aid. Johnson was sent to the county hospital where his injuries were cared for. Inspector Quinn and Traffic OffiC. Fouyer were soon on the Johnson was later arrested for drunken driving and taken to the ‘oom upstairs in . county Jail. see 3 be ee ae ed. room for trig Judge Frank T. NilonRest Today Mrs. Adele Hampton, Francisco. Judge Nilon was —— aa pe loved by all hose who knew him well. ‘In Jegal \ stature he towered among the giants of the state and his profound knowledge of law, his unusual and infallible memory, -his brillian qualities as an advocate won him the respect and admiration of the legal fraternity of California. For many years he has been a member of the legal firm of Nilon, Hennessy and Kelly, which he founded, with offices in this city and in Grass . Valley. albo ‘ots Sas As a neighbor and friend of \Nevada City folk, he was without peer and for those too poor to pay he worked with the same indefatigable\ zeal to establish their rights or their \ equity in court, as he did for great corporations who frequently employ_ed his services. A man greatly beloved he will be greatly mourned by: the people of Nevada City. Funeral arrangements will be announced by the eee Funeral Home. SCOUTS WILL ‘CLEAR SUGAR . LOAF TRAIL Saturday morning at. 8:30 Albert Pratti, Junior Assistant Scout Master of Troop 6, and the following group of Scouts, Ray Wilde, N. Robins, a dred Gates, Dick Bennett, Bob Small Robert Vanberg, John Porter; Carl Tobiassen Jr., Ernest Young: and guest, Edd Addington, made a-hike of four miles above Scotts Flat dam and surrounding country. Bo or The object of this hike was to et different odd specimens for thé coming scout rally which is to be hel: in Roseville in February. The boys brought back a collection of wild animal bones. as well a@ skulls of fox, coyote, deer and a nueeber of other animals. Next week Troop 6 will stare clearing the old Sugar Loaf Trail. NEVADA CITY ON THE MAP? WE'LL SAY SO! Well, anyhow, Nevada City loome large on the map. For, one A. B. Daniels of Detroit, Michigan, addressed a letter to the postoffice here as follows: Peter Haggerty, Superintendent of the Mint, Nevada City. (Please Forward) The ‘‘please forward” today -sent the letter, which arrived this morning, on its way-to San Francisco. Now, won't San Francisco hang it’s head. ‘ : coe or aca , Sento GUNES Se MASONIC LODGE SEATS NEWLY CHOSEN OFFICERS New officers were seated Saturday night by the Masonic lodge. The ¢eremony was followed by a turkey banquet. Thomas M. Harris, Masonic inspector of the Thirteenth district « assisted by J. F. Stenger installed the following officers: T. Lacy Jones, Worshipful Master; Walter A. Carlson, riage Warden; Harold D. Roberts, , Warden; B. Hall, Treasurer; J. 3 “Stenger, Secretary; W. E. ‘Mesareen. Chaplain; ‘Wade Armstrong, Marshal; Howard Penrose, Sr., Deacon; Carey S. Arbogast, Jr., Deacon;: W. Ss. Williamson, — Sr., Steward;. W. J. Treglown, Fe; Steward; John W. Darke, Tyler. — There was a musical program re a most interesting ¢ one. cas Ce Ogapomah Lodge ‘ot : Og The Purity Stores wi