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Collection: Newspapers > Nevada City Nugget

March 13, 1931 (6 pages)

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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.