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Page: of 6

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~ “ABOLISH TAX ON
The Nugget is California’s Leadin ci g Mining Weekly
evada City N get
po
NOL UME IV, NUMBER 49. THE GOLD CENTER-. NEVADA CITY, NEVADA COUNTY, CALIFORNIA, ihe COUN! Y SEAT PAPER
NOVEMBER 21, 1930
4 GOLD MINES . S .
~ —— ADVOCATED
Banker Says Abolish Taxes on}
Gold Mines—Raise Vahie
to $25—Lauds Nugget .
Alden Anderson, prominent Ban.
ker of Sacramento, in a communica:
tion to the Mining Association of .
California comes out plainly and .
‘advocates the abolition of all tana-'
tion upon gold mining and the revaluation of gold by the government .
at $25 the ounce. He embodied his{
theory in a letter to a group of prom: .
inent New York ecaitmists in which !
he says: .
A greater produviion of g¢vid must’
be obtained if gold is to be maintain-.
ed_as the standaré of monetary vah-.
ues. He also says that the government shouki “‘peg”’ or raise the ates
of ‘gold te at least $25 am ounce aud!
insists that all gold mined stiwald .
be delivered to the government }
Figures ‘are given in tue commeini.
cation to ‘show that the produstion :
of gold is steadily detlining in ‘Cali-;
fornia, the nition ami the waeld.
“This cannot continue,’ he *vrites,
“Gif we are to rely wpon gold ‘as our
commodity «of ultimate redwrnption.
“Tl am net a miner, nor am I in-.
q
continues,”“‘but. it is
that the ‘Federal @overnment should
take. the initiatiwe now and commence working
«reasing ‘the. goilb ‘supphy.
“It should be immedia#ely: provilsed that gold miming companies pay
no taxes of any king, eorporation,
income, ete., arrangessants sheuld
PROSPECTOR FIND GOLD
inch streamer of schist running with;
the hanging wall from the very grass
. the latest find in the California Rand
‘GOING $2000 TO THE TON
MOHAVE, Calif., Nov. -14—A gen
roewis down the shaft for-24 feet, the
present depth. that wil pan through~'
out as good as $2,000 to the ton is
mining “istrict.
The vein at the #rass roots sl»wed
18 inthes wide. As it proteeded
downward the widening becomes naturaliy between the hanging wall and
the foot walls At the bottom there)
is nothing to indicate that the vein;
will decrease in size. This high grade
ore is being sacked for shipment to
the Selby Smelter of the American.
Smelting and Refining Company..
Thirty tors from the main vein as-:
sayed $15 per ton. Like ull of the ore
from the Randsburg gold hills, there
is no stiver or other miyverals presztit.
The “discovery was made on the
extretve east end of the Yellow Astor range, a section of the district
that ‘has had but Tittle developmént
in all of the 36°years of active min-}
ing.’ George Renko, Foe Shea afd Ray
. Miller made the Uitcovery in Following up a streak on the Hercules claim ;
FAMOUS OLD CHEROKEE MINE
IS TO REOPEN BY NEW COMPANY.
‘CONGRESSMAN AND MRS
~ ENGELBRIGHT GO EAST .
Property Acquired by San Francisco Interests and will Operate
Without Usmg Monitors—To be Completely
Electrified and
‘NEXT WEEK
Congressman and Mrs. H. L. Engelbright are leaving some time next .
week for Washington where “Harry”
. will resume his labors for his disRehabilitated
‘OROVILLE, (Butte
The old Cherokee mine, once famous hydtaulic property, whose Ynon-} work has been
itors roated and hillsides came 4umb-. Chfokee. This includes a e pers
sold and muck} feet by twelve-feet in diamater and . Stituency.
bling down bearing
will yeopen again within the next .
two tionths. However, its re-opening
past objectionable features will be
eliminated. Instead of tearing the
hiifs away with water, mawern, methods of raining, in whith electrial
tuckers, sefubbers and sluice boxes}
‘to handle the gravel. will be used.
This is made known: by Jack Johnson of San Francisco, widely known
mining enmzineer and “capitalist, whd
with Jack Sullivan, hotel chain
owner, announced ‘tBey had purchts;
ed the mine from. ‘the Vinton Estate.
The Cherokee mine embraces nearly 2,000 acres di land. Operations
started at the Ctérokee in 1853 and
eontinued until $900. During
time from ene “ind ‘one-eighth “mile!
of channel the éwners took out $17,this.
County}—_. erators from $2.75 to $3.
‘solf@ bedrock. This is the tunnel in
50 a yerd.{trict. However, he has not been idle
A large amount of development: during the past sunmmer months a
completed ~at the. jhe has covered over 11,000 mités in
tunnel ten: his district in the interest of his con2.765 feet in length, driven through. His travels took him to neéarly..evlery county in the district on which
whith all the gravel of the once fa-. he endured theheat of Merced in
moms old Cherokee was washed. A . September and was caught in a snow
secpnd tunnel 900 feet in length was;storm in Lassen county
ariven by Lou Glass, once manager . ber. He has personally inspected all
of the mine and later president of ; the government projects in his disthe Pacific Telephone and Telegraph ' trict including National Parks; Natcompany. The Glass tunnel travels . ional roads and geological surveys
through nearly 1,000 feet of pay dirt and forest service development. His
mueh of which is easily available, . main object'is to speed up the work
so as to make a satisfactory report Renewed activity at the Cherokee . :
has been made possible by the for-. to Consress and thus make possible
mation of irrigation districts in the another raid — the treasury for
Oroville district from which the mine . ™ore appropriations.
. The last session of Congress saw will obtain water. Besides the supply . ee wt
from the irrigation districts five pig . the rere is the Bngelbright ire
reserveirs have been purchased by; Prevention bill which calls for a
the mining men. These reservoirs, hundred million dollars to be spent
Bottori Falls Out of Winz—
Murchie mine last Thursday and 3
men had a most meraculous escape
from death. The accident occurred
at about eleven o’clock
in Novem-. Alvarado,
Geo. Saunders went on shift.
two men were working in the breast
CLOSE SHAVE
IN MURCHIE
Mud, Water and Rock
Hurls Treo 70 feet
A near tragedy took place at the
when Phil
and his helper
The
a miner,
of an upraise that ran upward at an
angle of about 50 decreas and -was
being driven to tap and drain 9 wi"
above which contained als ay
feet of water, muck ard de_. oe. U>on gaining the breast, Alvar. °
ticed a small trickle of water coming through the rock overhead and
returned to the surface to make a
report to Foreman Cole. Cole accompaniéd Alvarado back to the face
and as the three men were inspecting
the roof, through which the water
' >, .
xover over one thousand acres of, OV!
{road building program:
a period of twenty years on a
This will
was oozing, the bottom of the winz
VO000 ta -Bdld. Tt is the only mingp ee O78 Oe Ot Sy POReeR to Hee” suddenly gave way like a heavy blast
terested In mining in any ®ay,” he, Se ee ee eee
jing in this partiewlar region so mutch
to the nd ‘of in-}
Wweated in Fiddlers Gulch spposiie!
the second bridge ‘on the pateed road 5 +“ Califorsita, the experts say, ‘which i
keast and south ‘of camp. as yielded ‘every owner a profit.!
: During the early days of the Cherodet i kee it wxs‘oWned by Secretary of the
plain to. me i dug, trenched and mined fer a show: " hee
. the last Way the moniters tore
. that it may be the reaxon ‘that otnnase bavie ot the PLN sons
ieee alae: Dek I Raha teas Chamse . qorge *leanops were recorded. Opera. hands year after year. It may be the!,. % : ir
re : , ‘tions sceasai when the waver rights
‘same reason wiih this trio of part-. j ‘were s0ld“to the Parific Gas. and
fb Ls a ck Te
ners when they i ed jay :
y interested Gustav; Electric(@émpany and after the axtij débis law Hecame effective.
. Bender of ‘San ‘Francisvo,:a new ar-*
vrival in the district to take a three The meted whaxausti call
} ‘he ‘operztion calls
ariel .
be made to catry all atompensation :
: i {mine
insurance. The several wstates sieula .
shewing “made on the Tind and un: ‘for tt
‘aml mill. After stzing up a :
, be importuned to amegd their Jaws
so that no-soid mining
‘ghoutd be compelled to tay avy state
or county taxes. Theve is no impropriety in the <overnment doing this.
The government is nesponsibie for
the “maintenance of a:stable and an
adequate financial spstem,
by a sufficient gold »eserve
tinres for its needs.
“The status can well afferd not
to *tax gold imines, for from the na‘ture of the ‘business ‘the mimes are
‘}ocated in areas wirsre the>normal
taxes, witheut devébopment would
practically amount: te nothing. When
development starts, men are put to
work, suppliessare purchased, machinery and ~quipment obtained and
the whole ‘community is bewsTitted
and enriched.”’
"In arguiwe that ‘tre
should increase the price the writer
takes occasion to lamd the Nugget
for our feeble efforts in
direction and ‘says in part: ’’Tae government showld increase the «rice
or ‘peg’ the:price of gold and ttake
délivery on aN gold ‘mined and the
government ‘could then distribmte to
the arts and sciences sweh a parX as
they see fit. "He says that if all the
gold in the world was attracted tere
to this country we shoulé then:be in
a position to dictate terms and eentrol of the world’ scommverce.
Qn ithe other ‘hand, hewever, ‘be
says it is likely that the price setting
would force other countries to ‘‘peg”
the price of gold also in order to keep
their gold at home, and ‘the result
would be that of stimulating gold
mining all over the world. ba
GOLD HILL REPORT
ON PRODUCTION
The Gold Hill, (Nev.) Development Company report a bullion production of $24,700 for the month of
October. This company are operating a group of gold properties five
miles noth of Round Mountain Ne‘at all
govermment
{vear’s tease on the Cperator Divide}
of electrical e “installation od!
{ mutkers, a tyonorail systex and mfth‘er snachimery. hneon, who wifi be
!
Tesgent an investment of over $300,-.
000. { '
The Cherokee will be operated under a corporate mame of the Chero.
1
Interior Andtew Mellon. Even up eat kee Gold Drift amd Mining Company .
hae officers of which are Jack :Suilivan, San Francisco, president;
;Jonanson, San Franciscs, vice-presiident and general manager; Alex b.
‘Wilson @f Oroville, “secretary-treasuner, E. Hutchings, -prominent SanFrancisse specialist will compose the
(board .of directars of the mew mining
ewmpans. ; i :
It «is at the ©herokse where the
pre
prove a great boon to the unemploynyrent problem!, which is the greatest
blem facing the nation today.
With the mining interest at heart
he will press further exemption . of
and tons of water and mud were precipitated down on them. foreman
Cole was standing close to a safety
nich and dodged most of the deluge,
but Alvarado and Saunders were
the Federal Income Gold Tax which
Jack . Should speed up production of gold}
land thus, give empioymeut to more!
ee The re-valuation of gold will
also come up for consideration.
; One of the biggest fights that con!fronts Congressman Engelbright in
, the coming session will be jp protect
the Reapportionment bill which was
. passed in June 1929, due to the
‘Jeadership of two of
overwhelmed and swept down the incline by the flood for a distance of
about. seventy. feet.
Both. mien’ escaped with their lives
but both were more or less injured.
Alvarado was driven against and
partly under a heavy timber where
he lay helpless while the flood swept
over him and escaped with a slightly
mangled nand and wrist. :
aeeords of the United States mint}
California’s
a
COME ADy.
covering the:srrface, Bender took ini ow ave cloan-upof=$470,000.ses5Plendid statesmen, Senator,
wacked .
the same,
. contention ihe $5,080 asked. La
ieash we a ‘first payment with the
proviso that ‘ihe venors stay on fhe
job and open it up. As it has been
; Many wnoons since that much cash
was ‘tendered on a ‘“tirst payment
here ‘the offer was aceepied. Bender
has me assoéiates in the deal. i
Asked what value ire placed on ‘his
purchase, he replied ‘that a milion
dollars woul not toweh it. “Prve al
ways ‘wantedse mine; 8? my own nd
now T've got at.”
BRADLEY ‘ACQUIRES LOW
_ GRADE‘GOLD PROPERTY
‘Worv6 has *ween reecived that con
rol of the Imperial Goid Mines Corporation, owtimg ‘the Independence
gold properties near ‘Goepper Canyon:
Nevada has passed into the hands of
the F. ‘W. 'Bratley interests of San:
let to Charles ‘W. ‘Birum, former
owner of the ¢idims, ty drive a 200
foot tunnel ‘bélow the present workings. The work -will be uxder Roy H.
Clark, a staff engineer ‘for the Bradley interests.
{ Property of the Imperial company
consisting of four claims,.covers a
large mineralized ‘belt cemposed of
quartzite breccia from 75 ‘to 100 feet
wide, forming a zene of altered
‘quartzite on; a schist foot-wail. The
Kkdeposit is developed ‘by two crosscut
‘tunnels and surface work shewing a
~width of 95 feet of material that is
‘gnilicated to be ore of milling grade.
The claims were purchased ‘fer the
Imperial. Gold Mines Corporatien in
Mareh ,of last year by H. Z%. Peters
and &d. J. Roberts, organizers ana
heads of the Imiperial Company.
Under the terms of transfer to the
: Bradley ‘interests the latter takes
over a majority of the stock in the
wada and report a sufficient amount jy nerial Company which has authof ore exposed to insure a long run
ef the mill, The drift from the 225
foot level has advanced 1,200 . feet
in ore and development is being inwreased on the 400 level.
fey . Soe
FORMER OPERATOR DIES
John Jory, formerly a prominent
mining operator and rancher, died at
Los Angeles recently. The deceased
‘was a prominent mine operator and
cattle rancher and a pioneer of Nevada. Fifty years ago he was the
owner and operator of the famous
eld Copper Canyon mines near Battle Mountain, Nevada.
ih Nhe IRS ee SSG AT Re Dae SEMEN UE OU Oar ty mer
~
orized capital of two million dollars
in shares of one dollar each par vaiue. Present officers of the company
are to resign at once and will be replaced by Bradley men.
It is stated that the Bradley Management will proceed with operations
on a scale that will depend upon the
results obtained in development.
No. 4 tunnel is to be driven 200
feet by contract and has been started
already but has not entered the ore
zone. It is near the center of the deposit and 100 feet below the elevation of the lowest tunnel that is in
ore,
ss
ee
ter on he mate an offer of $1,000!
: .
Francisco and a sontract has been,
{ in -chars#e-of operrtions says ww is
his intention of hailing &,000 yards
. ling has proved that a ‘larse acreage . ever three hundred diamons have; whieh raised
=, ¥, AATS LYDA NS
te « ; y Ao hf, ie
Lan cheb Bicuat walt ada ie 0 oh faa:
es status of California from one of
Re. ee eee ee ee oe a CESS ,comparative obscurity to one of maof:grave} each day. Exhaustive semp-)
1 A
is also at ‘the Cherokee where state . S®" and Congressman Engelbright.
; maining bureau records show that . This bill gives to California 9 ad. ditional Congressmea
==
MINE A
om
"Ray H. Harris, well krown :minimg oman, was a visitor iin this secj tion foré part of ‘mst ‘week. Mr.
Harris was completing a iteur of the
Mother Lode sectivon on @n_ insyection of various miming properties.
i He was very enthusiastic wver ‘fhe
prospeets of a revival of the ‘gdld
mining industry and expressed the
“opinion -that the cornties of the
lMiother Lode would be a enter of
‘the ativity that woukd be ‘manifest
4am ‘the wery future. From ‘rere Mr.
‘Harris went to Reno -where be visit—
ed several mining properties. The
Reno "Gazette had the following to;
suy rélative to his visit in thet ity:;
“After -an absene of. eight
Ray D. “Harris, widely Known as a
‘pnoker, ~writer and mise operator,
has arrived in Remo after a two
weeks’ visit of inspetion to the warious mining distrits along the Mother Lode*is Tuolumne, Calaveras,
Nevada and Amador ounties of California. He was a pioneer in the
southern Nevada amps, inluding
Tonopah ‘awd Goldfield, amd later
operated preperties im the various
amps of the state, partiularly at
Seven Troughs, now in Pershing
ounty, where ‘he developed the rih
Harris lease on a part of the vast
territory omprising the
estate of the Seven Troughs Gold
MMine, Ine. H,e now resides in Los
Angeles and wiki spend a day or
two here before returning home.
In speaking of his observations
on the Mother Lode, Harris said:
“It would seem that Mother Lode:
mine and claim owners have taken
it into their heads,to do their bit in
retieving the much talked of shortage of gold, frequently advanced as
ene of the causes of the eurrent financial depression througkout the
world. It is amazing to see the renewed and, steadily increasing mining activity,. particularly in Amador
and Calaveras coonties. I. found that
capital from all parts of the country, out especially from San Franciseo and Los Angeles, is taking hold
of both old and new lode and placer
properties and obtaining remarkably
good results. :
MOTHER LODE WILL SEE BiG
q
-years,
present ;
! The three-compartment
‘gained a depth of 230 feet,
. jor mmportance. However, California’s
'gain meant the loss to some of the
a¥le as x<he losation of the Argonaut ani Kenneily mimes, is a partieularly «active spot. Ata depth of!
58)0 feet, the #rgonaut has openman Engelbright
Zressman still has a few tricks.
t
Seuthern and Eastern states. who:
ts ae to fight heavily for!had three cuts on the head; one ear
‘ : ‘their rights. A clever piece of straegy, eonsidered the finest since the
‘Civil War, on the part of Congresswon the southern .
i vote last time so no doubt our Con& uiiders was not .so fortunate.
Struck by the flood he was hurled
down the shaft a distance of some
seventy feet and was picked up by
ea workmen“for dead, who had
rushed to the rescue. Reviving later,
it was found that he had sustained
serious, though not fatal injuries,
The examination revealed that he
drum had burst from the concussion _
{and one hand. was badly mashed and.
bruised. \
»
<
Other workmen in the mine detlared that when the breast gave way
ed up a body of ore runxing better
than 25 .a ton fer a width ‘of over
fifty feet, and wh only:one of the
wakis of ‘the vein sexposed. The Kennedy is .alap obtaining exellent re-;
sults at-great depth. In consequence!
of these Heep ore <disclosunes, other
properties mot only in. Jaekson but
for miles north an®& south are either
alrea#iy sending théir shafts to lower ‘hexizons «mr are \preparing to do
so, and practically all of them are
being s“ewarded by the expesure of
new ore ‘bodies. The Boston Calaveras properties near Mok@lumne
‘Hill, of which ‘Bat’ :Sullivam, oldtime Southern Nevada operater,, is
general »manager, is showing yp in
excellent fashien. The ,drift-placer
properties are also giving an acesunt
of themsetres, notably the Boundary
Come mine, in ‘the same :general Joality, of which John MeSorley :aiso
a fermer Nevada operater is general manager.”’
little of their distinguished
busy sessien at Congress.
STRINGER
sce
YIELDS THREE
MOHAVE,
property miay lead to the exploration
of a large area of virgin ground. The
mime is leased to Edward E. Kelley,
of Los Angeles, an attorney, and the
discovery was made by Al Sanderson
and Joe Shea. On. the. Bing Hole
claim south of the Lillian V. Sandersop and Shea are running a crosscut
turne] 200 feet to cut a good surface
showing. The adit has been advanced
about 160 feet and when it reaches
the vein will give 175 feet of backing. :
0SINKING OF SHAFTON . ;
GOLDFIELD PROPERTY
0
of the). H. & S. COMPANY
vertical shaft at the Pitisburgh-Goldfield Mine (Goldfield, Nev.) has
with
“The Bunker Hill and _ Sullivan
Company has taken up its option
So, if Nevada Cityians have seen
Congsressman during his i } . 8 vacation they . pow any three men could ¢ “oug May rest assured that he has been!
go, through
busy every minute preparing for a}
!
TONS OF RICH GOLD ORE
Calif—The discovery! Both the Kelly and Santa Fe mines
of a one inch stringer of gold ore; Of the old California Rand mining
that yielded $275 a ton on the Lillian. company, now operating by the Ware
V claim of the Consolidated Mines ! tley Consolidated Mines,
TAKES UP OPTION}
{siderable promise.
seams of quartz and alaskite shewing in the bottom. The workings are
apparently entering a zone of conThe company has just completed
the installation of a powerful hoist
and the installation of a huge compressor and plans tg sink to the 600
foot level before starting lateral
work. The shaft will be sent down
to a total depth of 2,000 feet unless
important ore bodies are developed
above that point.
Repairing of the Goldfield DeepMines shaft is proceeding near the
2,750. foot level, preparatory to resuming sinking to a depth of 2,750
feet. The management ‘states that
the core drills indicate promising
on the Imperial group of gold properties near Battle Mountain (Nev.)
and started vigorous work. The holdings are located in the Galena district amd the deal ranks among the
taost important consummated in the
past several years. ~~
0
‘GIBSONVILLE MINE IS
REPAIRING DITCHES
The Gold Cup mine above Gibsonville, is busy repairing and building
ditches and flume for catching all
the fall and winter rain possible to
be used in their spring operations.
Mrs. Belle C. Brown and William
and the flood started down the inci it made.a report very similar
. lo a heavy blast. and the wonder ig
; Such an ordeal and come out alive
—9§~————_
OLD KELLY MINEAT =
. RANDSBURG PROSPERING
RANDSBURG, Calf. Nov. 16—
are producd the property is taking on
. its old\air of prosperity with leases
flourishing.
ingore an
‘Frank M. ‘Lamley, engineer in
charge of operations, report that a
station has been eut at the: new
strike on the twelfth level of the
Santa Fe property preparatory to
sinking of a winze on the ore body.
The ore body, he says is 38 feet wide
and is looking fine. Over 400 tons of
ore has been taken out and milled
while in process of cutting the sta; tion. cee
Shipments have been made in the _
bast two weeks by McKinney an@
Whitney, Cole and Fisher, Ronning . :
and Ferblick, Bohen and Torsney _
and Tibbits, leasing in the Kelley
mine according to reports. Charles
Norman will have a car of oxide ore
ready this week from the second
levi of the Kelly No. 1 shaft and the.
company will send a ecarload of concentrates to the smelter from tz
Santa Fe ore, i ite
Manager Lamley reports’
new hoist is running fine
shipping and milling ore
hoisted through the Kel
7
%
Brown of Fresno are the main owners and confidently expect to mal
“Jackson in Amador
; *
County, not-