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Page: of 4

of .
ear
rom}
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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