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Page: of 6

The Nugget is California’s Leading Mining Weekly
evada City Nugget
VOLUME V;-NUMBER 15. THE GOLD CENTER NEVADA CITY, NEVADA COUNTY, CALIFORNIA . THE COUNTY SEAT PAPER MARCH 13, 1931
“COMPARISON OF ALLEGED COSTS
@ OFSTATE COMPENSATION SERVICE
> *%]o have always been told that
“figufes never lie,’ but it would be
hard to convinee those who -were
present at the meeting of the Mining Association last Saturday, that
when it comes to a comparison of
the alleged costs of state compensation and the identically same service
rendered: by some of our local mining
companiés, who are fortunate enough
to be able to carry their own insurance, figures or something, or somebody, prevaricates to an alarming degree.
After Mr. Creede of the State
Compensation Board had told us
that his department had been losing
money on the old rate of $9.42 on
each $100, and that they had to
raise it to $10.54 in order to break
even, Manager F. W. Nobs of the
Empire-Star Company arose and submitted figures showing the costs of
compensation as experienced by his
company, who carry their own insurance, For 1926 they were $1.84; for
1927, $2.02; for 1923, $2.22 and for
1929, $1.16, or just one-ninth of
what it is alleged it costs the state
to carry on.
If this is a sample of the efficiency
of state control, then thank Heaven
the state doesnt’ run our mines; and
thank Heaven thrice more that it)
doesn’t handle our foodstuffs, for
if it did we would all be eating black
bread with the Bolsheviks.
With such a disparity between
costs of supplying indemnity to the
mining industry, as shown up at this
meeting, it becomes a jest to ordinary intelligence to try to justify any
explanation for the abortive rate
charged by the state for this service,
and I do not think there was anyone present who thinks otherwise.
On top of the exhorbitant charges
by the state, everyone knows how
difficult it has been, in case of disability, both for: management and
employee, to get compensation from
this department that they are entitled to.
It usually means a long drawn out
effort, unlimited red tape and delay,
and generally results in the victim
eventually being glad to receive even
less than he is entitled to, This is
not true where the company carries
its own insurance, and should add
to instead of decreasing the rates.
The state entered into the insurance business in 1913, but business
wasn’t good. The political machine
could not compete with private companies—-and of course it never will
—so the legislature was called upon
for relief and it passed a law in 1915:
giving the insurance department a
complete monopoly of the business.
In effect it said that no private
company could charge a less _ rate
than the state. That was a fine piece
of legislation, particularly for the
mining industry, for the rates immediately rose, and have continued rising ever since.
Judging from the increased rates
one would surmise, 4s Mr. Gilmore
stated, that miners are being killed
off and maimed twise as fast as they
were in 1915. It is,«according to
this Stoners, becoming more
hazardous to go underground than
it is to go joy riding. Yet the writer
recently purchased for $10 a year an
accident policy with $5000 life and
many coverages for injury by automobile.
The state is certainly overlooking
something here, a splendid chance
to create another department of insurance by having the _ legislature
enact a.law compelling everyone to
take out a policy of this nature, but
with prices more in line with’ the
state schedule, say $120 a year,
which could be run up to double’this
amount in a few years, if it was
manipulated right.
Senator Cassidy, who is a member
of the legislative committee, appointed to probe the high mining
rate, stated that they had found
the rate setting board of the department composed of six represen'tatives of the big insurance
panies and one lone representative
of the state. How insignificant this
one, lone represetative of the. peo{ple must feel, One can almost hear
his thin, piping voice say ‘I object’’
when the Big Six decides to set the
screws up a little tighter on the
miners.
To be frank, we do not know just
how mych the Big Six figure in the
affairs of state. We have inquired
but found no one who is able to shed
any light on how much of the pie the
Big Six are getting, but it is safe
to say they are getting their share.
If they don’t it is their own fault.
Arthur B. Foote was one operator
present who placed his finger right
on the cause of the present distress.
He placed the responsibility on .the
legislators themselves.
Every two years our lawmakers
arrive at the Capitol with the pet
bills of their constitutents—hundreds of them. In fact there is an
average usually over 2000 every session, and there is not one in a hundred of them that is either. necessary or worthy of consideration;
many of them are absolutely obnoxious to sane government,
To me it seems that there is but
One sure way to obtain: relief from
the domination of ruin of state compensation insurance and that “is to
make an honest effort at referedum
and repeal of the law. As it is, we
find ourselves in somewhat a similar
position as we are with the 18th
amendment—-we have it thrust upon
us and don’t know how to get rid
of it.
In suggesting this. action to an
assemblyman the other evening he
stated that he did not believe labor
would permit the vote to repeal this
law, but I do not helieve this. Labor,
as far as I have been. able to determine, is as badly disgusted with
it as are the operators.
We were extremely fortunate in
meeting.
having so many members of the
state legislature with us. One of them
expressed himself as having learned
more substantial facts at first hand
than he had got from the entire investigation so far. It was a good
MINER.
FORMER MINING MAN
gc HERE, DIES DIES IN EAST
Word was received pecatead the freinds in
this city of the news of the death of
Sam H. Broskunier, former Nevada
City mining man, who passed away
at Sewickly, Penn., where he had
been. living for a number of years
past.
1915 During the years from to
1918 the Brockunir family resided .
here. Brockunier was interested in
a mining property: in the visinity of
Westville, Placer County. They occupied the house now occupied by
Mr. and Mrs. W. E. Wright during
their stay in this city. ‘
Brockunir ,who was a mining engineer, was sent to this section by
an eastern syndicate. The family was
well known in this city and made
many friends. :
Besides the widow, three sons and
two daughters survive. They
Charles Walker, Sam Hugh, Clare
eed, Elizabeth and Billy Brockunier.
\ 0
Et Vv
are’
‘RAINS BRING ACTIVITY
IN YOU BET DISTRICT
Bert Bolling and Warren
to day in the You Bet mine. They
have been running a powder drift.
,The nozzles and boxes are all set
tfor the operations.
They are working within a_ few
000 in the old days and the channel
is exceedingly rich.
In the Browns Hills diggins quite
a bit of activity is being shown. The
tunnels are being cleaned out asd
the boxes set and the ditches put in
shape. This mine ‘is in the You Bet
district and adjoins the Red Dog
mine.
0
ELECTED DELEGATE
William C. Jefferies, a prominent
member of Milo Lodge No. 48,
Knights of Pythias was elected to
represent the lodge at the meeting of
the Grand Lodge in Sacramento on
Ignition parts and accessories at May 17.Clarence Shurtleff was electthe Miners’ Foundry. tf ed alternate.
Kitts ;
are planning to start hydraulicking
feet of where Godding took out $75,-{
TWIN SISTER INSTALLS —
The Twin Sister mill, which has
been running for more than
months, will be shut down for a
month in order to allow for the installation of a ball mill below the
stamp mill which will increase the
eapacity of the mill to 75 tons per
day. The recommendation for _ increasing the:-capacity came after the
excellent results had been noted in
the run of two months.
The mill will be closed Mwo
months and it is thought that by hat
j time the roads will be open to allow
the. hauling of the added equipment.
Concentrates that have accumulated
during. the winter will be hauled ott
when the machinery is hauled ,in
thereby reducing the hauling: costs.
The ledge which was opened onj
‘the No. 3 level is very wide averaging more than five feet in width for
the two hundred feet that has been
worked.
\ President R. O. Foster is at the!
com-,
mine himself personally overseeing
all the work.
HOW MINING ASSOCIATION
MEET WAS APPRECIATED
San Francisco, Cal.,
March 10, 1931.
Mrs. Elsie~P;"Willoughby,
The Nugget,
Nevada City, Calif.
Dear Mrs. Willoughby:
I wish to take this opportunity of
thanking you personally and _ the
Mining Association for the courtesies
extended to me during my _ recent
visit.
Sincerely yours,
FRANK J, CREEDE,
Manager State Compensation Insurance Fund of State of California.
Sacramento, Calif.
March 10; 1931.
My Dear Mrs. Willoughby,
Nevada City Nugget,
Nevada City, Calif.
“The longer I think about the
Mining Association meeting the more
. delighted I am with what I think
‘about. I know that nothing in the
world could have done so much good
in so short a time as that very meetMee oe
Een Ss, Fe
NN
' SHARPE BRINGS IN
Mr. Sharps brought some very fine,
looking ore to The Nugget office}
Tuesday from a property he is workjing east of town.
Sharpe stated that some of the!
rock went as high as $30 per ton.
Mr.’ Sharpe has spent about
months opening up this property.
The ledge averages from a foot to
three feet wide.
0.
PETITIONS FOR LETTERS
A petition for letters of adminisJames Stead has been filed in the
superior court by Ethel Stead Rickard, his daughter. The estate consisas
of real and. personal property and is
valued at less than $1000. The
heirs are sons and daughters. Vernon
Stoll is attorney for the petitioner.
NEW MINE MACHINERY
two
FINE LOCKING ORE!
two .
tration upon the estate of the late:
. LEGISLATIVE GOSSIP
AROUND STATE CAPITOL
By BERT CASSIDY
There still is no indication of
CALIFORNIA MINING ASSOCIATION
~ HOLDS GREAT MEETING SATURDAY
Re ae Fi, eae
Swe ageitonste ryan habe
A meeting of the Névada, Sierra,
grist
of
. speeding up the legislative
. mits, With a general attitude
the government, very. few bills are
being reported out of committee. As
a result “very few matters are coming before either the Senate or the
oihesor isa for consideration: It begins
is inevitable.
Senator ‘‘Tim” Tracey of San
‘Franciseo, elected to fill the unexpired term of Senator Roy Fellom, was
:sworn in and took his seat in the:
upper house Tuesday morning. Sen-}
ator Tracey represented his present .
district in the Assembly in, the early .
90’s and after taking his seat Tues-.
‘day spent several minutes reminiscing over the old days.
The motor vehicle act is being rewritten, and amended under the
“Breed Bill’’ which is now before the
Senate motor. vehicle committee, The .
committee will undoubtedly be busy:
on this measure for several weeks, }
conducting hearings. One of the outstanding amendments so far acted
upon, is one requested by Ray Cato,
superintendent of highway. patrol,
placing traffic officers under call
24 hours a day. Mr. Cato in explaining his request said it was not his
[ purpose to require longer hours, but
'to clothe them with police authority
during ithe full day.
The ‘“‘cow county” legislators are
making their presence felt more as
‘each day of the present session progresses. There is appearing on the
[horison a sort of unspoken,—unwritten,—rather intangible understandig arising out of ecnoomic conditions that bring’ their views tn ac‘cord. Matters of policy that have a
tendency to increase taxation are being frowned upon by this group,
which have control of the upper
t house,
SLUICING FOR GOLD IN
HEART OF NEVADA CITY
M. Angiolini, business man of Nevada City and Mr. Peter . Faucetti,
mining man of many years experience, are sluicing for gold in the
‘burnt district’? in the heart of Ne‘vada City.
We have often read of people
picking up nuggets in the streets of
the mining towns, but how about
sluicing in the heart of the county
. seat. of Nevada County .for gold?
' Several pretty nuggets have been
Soon and every shovel full of gravel
shows colors. This gravel is. in Deer
Creek which is known to carry rich
velues in gold and has a number of
mines on its banks. the Murchie,
{Just vhbove town being the largest
mine operating at the present time.
At one time this property was occupied by Lane's 1: stable. Two
. hostlers and porters at the stable
[used to go down in the basement and
,dig for gold after their duties were
rery.
‘over for the day. They often made
as high as two dollars an evening;
which was large pay'in those. days.
As the story goes the hole became!
larger and larger until cedar logs}
were used as a fillers. At about this
time Mr. Lane discove what the el
‘Men were doing and stopped them.
J U
disinterest on the part of both the!
executive and legislative branches of .
to look now as if a summer session .
. Placer, Yuba Chapter of the Califor‘nia Mining Association was held
. }Saturday afternoon, March 7, at
. Elks’ hall, Nevada City, to discuss
; ways and means of lowering the constantly increasing cost of mine accij dent insurance in California. The
;meeting was in charge of J. D. Stewere, president of the chapter. Mr. W.
lH. Griffith extended greetings to
the visitors on behalf of the Chamber
. of Commerce.
Among those present who took
part in the discussion were: F. C.
. Creede of the State Industrial Acci‘dent Commission; Errol MacBoyle,
‘manager of the Idaho-Maryland
mine; Arthur Foote, of the North
Star mine; F. W. Nobs, superinten, dent of the Empire Star Mines, Ltd.;
A. R. Archibald of the Consolidated
. Syndicate Mines Corporation, Ltd.;
; Charles L. Gilmore of Sacramento;
Assemblymen Seawell and Cloudman; Otto E. Schiffner, superintendent of the Hoge Development Company; C. S. Brooks, secretary of the
‘State. Miniig Association; and Senators Willicms, Allen, and Cassidy,
an three of which are members of
the seatorial committee g@ppointed to
investigate the rate charged for
mine accident insurance in California. James D. Stewart also spoke on
‘the subject.
Mr. Creede spoke first ad stated
that while everyone is convinced that
the present. compensation rate is a
great burden to the minig industry
it is not yet agreed as to who is responsible for the constantly increasing rate. He explained that thet the
Compensation Fund is in effect a
trust fund approximately sixty per
cent of which is used in paying losses
and forty per cent used for administration. purposes, which includes the
Fund overhead and the paying of dividends to the operators insured with
the fund, In California the compensation, rate is fixed by the Insurance
Commissioner for all carriers, as are
all rates for all industries. The mining compensation rate is determined
by dividing losses sustained during
the last five year period by the payroll. for the same period. This gives
the rate per $100 of payroll . Mining accidents and their cost definitely fix the compensation rate.
One reason for higher benefits to the
insured. One provision of the California Act gives medical attention
for life as compared with a limited
period in other states. In California
if a miner is paralized and needs to
be hospitalized for the balance of his
life, with nurses and doctors constantly in attendance, the employer
is resonable under the law. The medical bills alone for such a case of
pardlizes might easily reach the sum
of $25,000. But the main reason why
the rate is higher is the larger number of costly accidents in the mining industry in this State compared
to other states. Comparative records
prove this to be a fact. The Fund
so that more frequentinspections
could be made that would partially
help to lessen accidents. With fewer
jaccidents and conspuent lowered
costs, the compensation rate will be
i lower,
' Mr. Errol MacBoyle of the Idaho‘Maryland mine stated that he
carefully inspects all mines that it.
insures and if additionaal funds were} the Empire there would be undoubtprovided so that the Fund could! edly fewer accidents and a ednsthought the Industral Aecident Com-mission itself was resonable for exessively high expenditures for the:
services of specialists for injured men
and said he deemed it absolutely un-—
ecessary for them to take injured
men to San Francisco and otrer large
cities for treatement at great expense when they could get just as
competent treatment locally as elsewhere. He also stated that the high:
compensation. ralte, and exorbitant
taxes were actually threating the life
of the mjning industry in the State
of California, and. Keeping out mining capital that would otherwise en-~
gage in mining enterprise in the
State.
Mr. Arthur Foote, of the North
Star mine, set forth his belief that
very little of the legislature regard=
ing compensation had emanated frome
the miners themselves, but fron
others, meddlers, not conversant
with mining conditions. Rather than
have the mine operators handicapped by unnecessarly high compensation rates ad adverse legislature te an
extent that the operators would be
forced to cut wages or close down,
he felt that the miners would prefer to have all such handicaps to the
mine operators eliminated.
Mr. F. W. Nobs, superitendent of
the Empire-Star Mines, Ltd., gave @
most illuminating talk on mine accident prevention methods used at the
Empire-Star mines. He outlined the
work of the Holmes Safety Association at the Empire and showed that
a systematic monthly inspection of
the underground workings of the
mine as well as a like inspection of
the surface plants by a committee of
miners of the association to detect:
anything unnecessarily dangerous to
the workers, together with the subsequent elimination of all such dangerous things found by said committee
resulted in their having had at the
Empire-Star Mines over a period of
years a remarkably small number of
accidents compared to the number of’
men employed. Also the members of
the Holmes Safety Association meet
regularly to learn and. discuss safety methods, sanitation, and engage
n “ first aid’ prastices and are paid
by the Empire for doing so. Mr. Nobs
produced figures covering a period
of several years which showed that
if a State compen sation rate could
be based on the losses sustained. at
the Empire-Star Mines and the payroll there it would be less than one
third of the $10.54 rate.
The intelligent, intensive eooperation of the Empire mine managment
and the miner has resulted in great:
success in accident prevention in the.
Empire. It is obvious that the Empire.
mine in using its methods of voluntry inspection for the prevention of:
accidents has given a most pratical
demonstration. to ‘all operatars in
California as to how the compensat-.
ion rate can be lowered.
If each and every mine operatorin California would adopt methods of
prevention similar to those used at
equent lowering of the compensat-.
ion rate, é
In event the inspection is not vol~
untaary then the alternative method
of lowering the compensation rate is:
that suggested by Mr. Otto B. Schiff~
ner, As a result of several years ex~
(continued on page 5):
‘SHOT WHILE PLAYING
WITH LOADED REVOLVER
DOWNIEVILLH, March 12.—A
most regrettable tragedy occurred at
the home of Sheriff Winstead of Sierra County Wednesday morning
which Yesulted in the death of Inez
Harriet Resseguie, four-year-old
grand daughter of Sheriff and Mrs.
Winstead.:
The little girl opened the top
drawer of a bureau in the room to
place a handful of pennies that had
. been. given her. She saw the revolver
and childishly took it in her hand.
While handling the revolver it was
aecidentally discharged the byllet
piercing the little. ~eirl's heart. —
D ee go Pane who has been in
Forest for the past month, was a
lvisitor here Friday evening en route
to his home in Los Angeles,
PLAZA GROCERY HAS
The Plaza: Grocery has just eompleted placing more than 20 faet of
plate glass on the right hand si@e of
the Broad street entrance: to their
store. This brings the total ptate
glass frontage of the Hp-toniaae
store to more than 50 feet.
By this installation it will enable
the firm to more adequately. display
the many article that are sold by —
them. In order to install the new
front it was necessary to move the
office to the rear of the main stot
Shelves are being placed on. I
walls formerly . occupied by the
office and additional tables” being placed for a better = te
their goods.
The. improvements have
much to the appearance of the «
as well as creating considerable.
business spate.