Columbia University Libraries Digital Collections: The Real Estate Record

Please note: this text may be incomplete. For more information about this OCR, view About OCR text.

February 18, 1882 The Real Estate Recorb. 141 We have received a communication from a source which claimR to be well informed, making serious charges against the management of the Standard and Bulwer mines. In effect it charges that the Bulwer mine is being robbed for the benefit of the Standai'd. It is alleged that the Standard mine is managed wastefuUy by Superin¬ tendent Irwin, who is a partner in the lumber¬ yard which supplies the mine. It is also said that some of the bullion was stolen and that the cashier of a bank and one of the foremen of the mills were implicated. The paper further charges that for some time past the Bulwer has supplied the ore for the Standard dividends. According to this story, the veins of the Standard have a westerly trend and run into Bulwer ground. Bulwer being the oldest claim, this person states, should take all the ore found. This document goes on to say : " This explains why nothing has been discovered in the drifts run from the Stand¬ ard vertical shaft eastward on the 500, 700 and 1,000 feet levels, while the drifts westward ou those levels run only a short distance, when they strike into Bulwer ground, which precludes their finding any ore that depth for Standard. The development in west cross cuts from Standard shaft is nothing else than prospecting work foi- Bulwer. On the 500 feet level, at a point 275 feet widtii in the south drift, a west cross cut has been run which is in 310 feet and now in Bulwer ground; at a point 500 feet south a west cross cut has been run 124 feet, which is almost in Bulwer ground. On the 700 feet level a west cross cut from Standard shaft has been run and is now in 436 feet, again in Bulwer ground. On the 1,000 feet level the west cross cut from shaft is in 376 feet, which is also in Bulwer ground. All this goes to show that the^Standard mine is becoming exhausted, and are going to make the most out of its kind neighbor, which has been so good as to jend them a helping hand in distress, until they were well rid of their Standard stock. The grade of ore in Standard is gradually running down, so that at the last official report the pulp essay was only $15 per ton, a value which is too poor to mill when the cost of mining is $9 per ton and of milling §11 (the price paid the Bulwer mill). It is a well-kown fact that the Standard people have sold all their Standard stock, and after freezing out most all the old Bulwer stockhold¬ ers, have obtained fully three-quarters of that stock—so if at some future day our friends, the Standard stockholdei's, find their stock selling at a song, aud Bulwer stock for a good round sum, they need not be surprised." The obvious intention of the above is to ad¬ vance Bulwer stock at the expense of Standard. The writer is as wrong as he can be. It is true that near the surface the veins do take a west¬ erly dip, as they do on the Comstock; but when some distance in the earth they become vertical and then their course is to the east. On the Comstock the mines are being worked a mile and a mile and a half to the east of the shafts which were first sunk. Then, the writer does not seem to te aware of the fact that the ownership .of a vein follows the apex, that is to say, if ore was found to run from the Standard into the Bulwer mine as it gained in depth, it would belong to the Standard until it was exhausted. The fact is the Standard is an exceptionally well man¬ aged mine, although it is quite true that the .=iuperintendent is a partner in a lumber firm and that the incidental expenses are somewhat too high. Still the fact cannot be gainsaid that for five years and seven months the Standard has paid regular monthly dividends, never less than flfty cents a share, and for the last two years seventy-five cents a share. Those who purchased it at $35 or less have nothing to com¬ plain of. The Cooks still allege that there are nearly three years'dividends in sight, and we think they really believe so, as they seem to be anxious to continue in the management. Still we do not advise anyone to buy it. For the last two years there has been veiy little manipulation of the stock on the market. As for Bulwer, it is paying regular dividends of ten cents a month on the profits of its mill. We do not believe there is any pay ore in sight in Bul- wsr, though some may yet be discovered in the southern part of the mine. If all mining man¬ agements treated their stockholders as well as did the officers df the Standard, mining shares would be in much better repute than they are. Private advices from Silver Cliff are not reassuring. There are only a few men to work, and they are engaged in picking selected ore. t is supposed that some rock will be got to¬ gether that will make a vei-y good showing for about thirty days, during which time the insid¬ ers will unload on the public. It is alleged that James R. Keene made a deliberately false state¬ ment at the last annual meeting of the stock¬ holders, when he said that the fii'st run of the mill had brought them $30,000. While he un¬ doubtedly believed in ihe property at first, he has since been engaged in marketing the stock whenever he could. The property is heavily mortgaged to Keene himself, who to-day sub¬ stantially owns both mine and mill. But take the rock as it comes in the mine, it does not average $5 a ton. The whole Silver Cliff dis¬ trict is a failure. ASSESSABLE MINING COMPANIES. As there are literally scores of valuable mining properties which are not developed because of the impossibility of raising money, an effort is to be made this winter to so amend the mining laws of this State as to permit the shares of such organization to be assessed for the development of the mines. It is understood that Mr. Dorshei- mer is preparing the necesrary bill. The Bull Domingo, Big Pittsburg, Wyandotte, and indeed a hundred other companies have come to a stand still because of the impossibility of raising money. An assessment of ten cents a share, every quarter, would render productive many properties which are now lying idle. The fol¬ lowing letter on this matter is from the pen of one of the best known California mine owners, now a resident of this city : To the Editor Real Estate Record : IVIining for gold, silver and lead is as much of a legitimate business as the mining for iron or coal—it takes gold or silver to open iron and coal mines. There is a prejudice against mining en- terpiises for tho developmenc of gold and silver, and the question is, are they just—has not the recklessness in which the public have gone into the mining of gold, silver and lead the main cause for the disappointments that have at¬ tended many of the enterprises that have been floated upon the market? Are not our laws de- flcient in regard to mining incorporations? The State of California is doing more work towards the development of the precious metals than any other State in the Union. We very seldom see any of the mining properties attached or sold out by force sale. Why is this? The laws of Cali¬ fornia are such that any one that goes into them knows that his obligations are such that he has to pay for the development of tho property bought, and the mine is worked npon a cash basis, and he takes his chances—in the State of New York he buys his stock and he wants it unassess¬ able. The consequence is that the work in the mine is stopped until bonds can be sold at fifty cents on the dollar, and by which process the debt on the mine is augmented 100 per cent. We have a case in mind. The Big Pittsburgh mine was worked, and a debt of about §100,000 was created. The company mortgaged their property for $300,000, selling then- bonds for $150,000; the first $10,000 received was sent out, and before they had expended one half of the $10,000 a body of ore was struck that enabled them to pay off $80,- 000 of their bonds. An assessment of ten cents per share would have done the work and the mine would have been out of debt. New York has the capital and should be the mining centre, and now that the Legislature is in session, let the mining laws of the State of California be adopted with any amendment that will make them stronger, and be a safety to the stockholders. We have talked with many who have gone into mining properties with stock unassessable, and they all say we do not want any more unassess able stock that means bankruptcy. ABOUT HOUSE HUNTING. A gentleman, who, with his wife, has for some time past been looking out for a house to purchase, gave some of his experiences to the writer, which may perhaps be worth reproducing here. " Some time ago," said this gentleman, " I per¬ suaded my wife that it would be a good thing to buy a house further up-town and to sell our old one, which is situated below Fortieth street. Now, my good woman is sensible, and even ex¬ ceptionally clever, but, as she is a woman, she is whimsical. I could not get her to look at a house east of Third avenue or north of Seventieth street. She wanted it somewhere below this last named street, on the east side of tho park. Now, our means are limited, and we could not afford to pay over a certain moderate flgure. In mak¬ ing the purchase, I wished to keep in mind the value of the property as an investment, and I asked myself, in every case, is thi.s a growing neighborhood, and will this house rent for a sum that will pay a fair interest on the investment ? When I found the house that an.swered these con¬ ditions my wife always objected. The building lacked closet room, the stairs were too narrow or the dining room not large enough. She persisted in liking houses that were near Third avenue, on the side streets, and could never see any merit in a house on Lexington avenue, because of the great number of Hebrews who occupy residences thereupon. Some little prettiness or convenience inside the house would make her overlook such serious objections as a stable in the immediate neighborhood, or a tenement house but a short distance away. And here let me remark that landlords would do weU to pay more attention to the interior look of a house if they wish to sell or rent. My wife was quite enthusiastic about one inferior house, as it seemed to me, because the landlord had the wit to paper it nicely throughout with the newest artistic designs. I was struck, too, by some of the tricks of the trade. I found agents who would give me per¬ mits to visit houses which were not for sale. They had the name of the landlord all right, and in some instances they were probably aware that if he had a good offer perhaps he would sell; so they sent their customers to look at the house, hoping, that if it attracted their fancy, an offer would be made which would lead to a bargain and a commission. I have made up my mind, after a very thorough search, that at the present time there are no really cheap houses in New York, and I suspect that when any real bargains come to brokers' offices, these gentlemen are in relation with capitaKsts who give them an extra bonus on all property which is really sacrificed." NOTES AND ITEMS. L. The Board of Assessors report that the number of assessment lists on hand at close of the year 1881 was seventy-one, showing an aggregate of $3,053,977.99, as against eighty-eight on hand at close of the year 1880, aggregating $1,944,751.97. The number of assessment lists received during the year 1881 was ninety-seven, aggregating $601,089.17. Controller Davenport says that the number of acres of land owned by the State in the counties named are as follows: Clinton, 35,606; Essex. 137,161; Franklin, ]63-,9Sl; Fulton, 15,428; Hamil¬ ton, 160,010; Herkimer, 13,1-^2; Lewis, 3,164; Montgomery, 16: Saratoga. 10,430; St. Lawrence, 4^,064; Warren, 24,507; Washington, 737; total, 600,236. He also reports that there is no reliable information in his office enabling him to deter¬ mine what proportion of these lands are tim¬ bered, but that in his judgment the valuable or immediately marketable timber has been removed from a large proportion thereof. A fertilizing company has purchased 1,400 acres of land near Islip, L. I., for $14,020. No more street contracts will be awarded by the Commissioner of Public Works until after March 1st. The Aldeiinen want every owner of a shop or factory to keep on band on each floor of the premises three or more ropes or chains of 100 feet in length, and to keep them in a conspicuous place near the windows, to be used as fire escapes in case of fitre. Notice is given that an application will be made to the Supreme Courton the 14th day of March, for the appointment of Commissioners of Estimate and As¬ sessment, relative to the acquiring of land for a cer¬ tain park or square at the intersection of Sedgwick, Mott and Walton avenues, in the Twenty-third Ward. Judge Westbrook has issued an order authorizing Eeceiver Nathan T>. Wendell to sell the real estate of the Universal Life Insxirance Company.