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Full text of "Report upon the mine and mills with estimates for the use of the "North Carolina Gold Amalgamating Co.""

THE LIBRARY OF THE 
UNIVERSITY OF 
NORTH CAROLINA 
AT CHAPEL HILL 




THE COLLECTION OF 
NORTH CAROLINIANA 



C553.U1 

C88r 



FOR USE ONLY IN 
THE NORTH CAROLINA COLLECTION 




RETORT 

DPOX THE 

MINE AND MILLS, 

WITH 

ESTIMATES FOR THE USE OF THE 

NORTH CAROLIM GOLD AMALGAMATING CO. 



[Chartered by the Worth Carolina Iiegislature, Jan. 30, 1874.] 



BY 

General f. J. CRAM, 

U. 8. CORPS OF EKQINEEKS (RETlttED) ACTINO AS COSC UTISI ENOI'^EKR. 
TOOBTHBU WITH THE 

ETC ETC. 



COLLINS, 



PHILADELPHIA: 
PRINTER, 705 JAYN 
1874. 



E STREET. 




I 

I 



Map entitled Plan sketch of the 
N.C. Gold Amalgamating Company's 
gold mine and gold extracting 
mills, etc., at Gold Hill, Rowan 
Co., N.C. shelved separately as 
Cm912.05 
1874 . 



Digitized by the Internet Archive 
in 2013 



http://archive.org/details/reportuponminemiOOcrann 



CONTExNTS. 



PAGE 

List of Opficees 5 

Report 7 

I. Charter of the Company 7 

• II. Localit_y of the Gold Hill Mine, and Character of its Sur- 
roundings .......... 7 

III. Description of the Mine (with a Plan of the Company's Pro- 
perty at Gold Hill, Rowan Co., N. C.) 8 

IV. Character and Quantity of the Ore the Gold Hill Mine affords 10 
V. Brief History of the Former Workings of the Mine. Chilian 

Process of Extracting the Gold. Product obtained. Amount 

lo.st 11 

YI. The Crosby Process for Extracting not only the Free Gold, ^ 
but likewise the Gold and Silver with it, which are tena- 
ciously held combined in the Sulphuret ores ; also for Ex- 
tracting the Copper contained in them 14 

VII. Experimental Results of Working the Crosby Mill on a Large 
Scale in Virginia . .17 

VIII. Operations of Mr. Howes and the Associate Owners concern- 
ing the Mill, subsequent to the foregoing Experiments . . 17 

IX. Operations from the time of Discovering Ifr. Howes' inability 
to fulfil his Agreements to the time of President Hulme's 

Sudden Death 19 — 

X. Action after Mr. Hulme's Funeral, to the 1st July . . 20 
XI. Elements or Data by which to Estimate the Profits to be ex- 
pected from working the Crosby Process at this Mine . . 23 
XII. Assays of the Gold Hill Ores 24 

XIII. Probable Profits to the Company from the Mine and Crosby 
Mills 25 

XIV. Policy of Working the Mine 28 

XV. Schedule and Cash Valuation of the Company's Property at 

Gold Hill " . 31 

XVI. Valuation of the Mine Exclusive of the Value of the Pro- 
perty Sclieduled in XV 31 

APPENDIX. 

A. Charter 33 

B. Testimony as to the Value of the Gold Hill Mines . . .36 

C. Balance Sheet 36 



OFFICERS OF THE CORPORATION. 



President. 
LLOYD P. SMITH. 



Vice-President and Consulting Engineer. 

Bvt.-Maj.-Gkn'l THOS. JKFFERSON CRAM, 
U. S. Corps Engineers, U. S. Army (retired.) 

Secretary and Treasurer. 
WILLIAM F. MITCHELL. 

Solicitor. 

B. ARTHUR MITCHELL, Esq. 

Counsel of the Company in Salisbury, North Carolina. 

WILLIAM H. BAILEY, Esq. 

General Manager of Mines and Mills. 

Prof. AUGUSTINE B. CROSBY. 



Directors. 



Lloyd P. Smith, 
Gen'l T. J. Ckam, 
Joseph G. Mitchell, 
Martin Landenberger, 



B. A. Mitchell, 

A. B. Crosby, 

Dr. J. D. Mitchell 



Barton H. .Jenks, 



C. BocKius, 



2 



E E P O R T . 



I. Charter of the Company. 

This is highly favorable, authorizing the Company to 
issue and increase from time to time its capital stock to the 
extent of §2,500,000 ; to erect mills with ample machinery 
for working ores, to extract therefrom the precious and 
other metals by any process ; to purchase and own mines, 
and exercise all operations for mining the ores ; also to issue 
mortgages upon its property, and coupon bonds or other 
evidences of indebtedness for the purposes of raising funds 
for carrying on its legitimate operations : and one condition 
of the charter is that the stockholders shall not be held respon- 
sible beyond tbe assets of the corporation, thereby not holding 
them individually liable. 

II. Locality of the Gold Hill Mine, and Description 
OF ITS Surroundings. 

This celebrated valuable mine is situated in Eowan County, 
North Carolina, fourteen miles southeasterly from the town 
of Salisbury. Railroads are continuous from Philadelphia 
and other cities to Salisbury ; but thence to the mine travel 
is by the county road. The time for reaching the mine 
from Philadelphia is twenty-six hours. 

The real estate upon which this mine is situated contains 
about 800 acres of land, a large portion of which is good 
for farming. On this tract a town called Gold Hill has 
sprung up, containing a population of about 1000, all more 
or less dependent upon the operations of the mine. 



8 



This mining property is surrounded by an old well-settled 
farming country furnishing all the necessaries of life in great 
abundance and cheap in prices ; and possessing a very 
healthy, mild, and salubrious climate all the year round. 
The large timber tracts in the vicinity of the mine furnish 
an ample supply of cheap lumber and fuel. The Company lias 
contracted for its yearly consumption of fuel for its steam 
engines to the amount of 12,000 cords, delivered and piled 
in its mill yards, at the prices of $1.25, $1.50, and $1.75 
per cord, according to the quality. 

Common labor, and mechanical and raining labor, ranges 
from $1 to $2, $2.50, and $3 per day, according to the skill 
and aptitude of the men. 

III. Description of the Mine. 

Mr. Emmons, as State Geologist of North Carolina, in 
1856, made a survey topographical map with sections of 
this mine. His report of it teems with valuable practical 
information concerning its productions. 

Professor Genth, geologist, has since examined and re- 
ported upon its ores, the process of treating them for the 
extraction of the gold in use in 1871, and the product of the 
process. 

More recently, several mining experts of ability and ex- 
tended experience have explored the mine, and pronounced 
the highest opinion upon its value. 

As Consulting Engineer of the Company I made an ex- 
tended visit to the mine last March, for the purpose of 
testing the Crosby Process for the treatment of the ores, 
examining the machinery and capacity of the mine in its 
then condition for production and future development ; also 
for forming a probable estimate of the amount of immediate 
capital required to improve the mine and construct the ne- 
cessary mills for producing \ large amount of gold and 
copper. 

This mine has three veins, differing somewhat in extent 



9 



running nearly in parallel directions N. 48° W., and sepa- 
rated by about 250 feet, and designated as follows. (See 
accompanying sketch which contains the portions of the 
veins worked.) 

The " West Vein" (about one mile in extent) containing 
the "Earnhardt Shaft" 250 feet deep; the "South Shaft" 
450 feet deep ; the " Centre Shaft" 600 feet deep ; and the 
" Randolph Shaft" 750 feet deep. 

The " East Vein" (about three-quarters of a mile in extent) 
containing the " Barnhart Shaft" 350 feet deep; the "Old 
Shaft" and the " Lounder & Co. Shaft" of less depth, though 
not exactly measured. 

The " Middle Vein" (three-quarters of a mile in extent) 
containing two or more shafts, formerly worked, since aban- 
doned, of considerable depth. The main street or highway 
passing through the town follows along this vein. At the 
eastern end of this vein are the "old fields," where small veins 
of very rich ore have been found. 

The extents above given to the several veins are all con-' 
fined to the Company's property. But the extent of vein 
upon which shafts have been sunk does not exceed 900 feet 
on either vein ; leaving a large extent of vein, some 4000 
feet yet unpenetrated with deep shafts and drifts. There is 
no reason why these unpenetrated parts shall not yield as 
much or even more than the parts of the veins which have 
been mined. But there is no necessity for sinking new 
shafts to find the rich ore. The Company has only to sink 
the Randolph and Barnhart Shafts 100 feet deeper, extend 
the present drifts from these shafts, and also new drifts at 
a level of 50 feet below these, to meet with very rich ore, to 
any required amount. 

The existing shafts are sunk vertically, in diameter 8 to 
10 feet for some, and from 14 to 16 feet for others, in rectan- 
gular shape of horizontal section, and lateral drifts or gal- 
leries are run at various depths from the shafts into the ore 
veins. The thickness of the veins varies from 6 inches up 
to 4 feet, and even to 7 feet in some places. The walls of 



10 



the veins are mostly " talcose-slate" rock. Pumping is re- 
quired to keep the shafts clear of water, and drilling and 
blasting are necessary to sink the shafts, also to loosen the 
ore, which is lifted up by proper machinery to the ground 
surface, whence it is carted oft' to the mill for extracting the 
gold. 

Besides the mills, buildings, and roofings, whims, and 
shafts seen on the sketch, there are other dwellings, and a 
large amount of valuable machinery, tools, and other movable 
property on the Company's property which are of use to the 
Company. 

There is a peculiar feature greatly enhancing the value 
of this mine, and this is the fact patent to all mining en- 
gineers who have examined it, that the veins of the ore are 
continuous, and confined between walls so perfectly defined, 
that there is a striking resemblance to a coal or iron mine 
in that the gold ore does not exist in pockets, which are so 
liable to be soon exhausted after great expense of labor to 
reach them, as is so often the case in many western aurife- 
rous mines. 

The Gold Hill Mine is apparently what may be called the 
chimney, or summit of the gold bearing ridge or upheaval 
of 30 to 40 miles in extent in that part of North Carolina, 
and which is rich in sulphurets. 

IV. Character and Quantity of the Ore the Gold 
Hill Mine affords. 

Its gold bearing veins consist of quartz, talcose-slate, and 
sulphurets of copper and iron, with the gold, and sometimes 
a small percentage of silver mixed in, in particles so fine, 
generally, as not to be apparent to the naked eye. In the 
ore there is contained a certain quantity of gold that is re- 
garded as free, not tenanciously held in the sulphurets, and 
which is easy to extract; while in the sulphurets there is 
held a much larger proportion of the gold that is far more 
difficult to extract from the ore. As the shafts are sunk 



11 



deeper, less of the former kind is met with and more of 
the latter is fouud. Again, in the veins ores of different 
yields of gold are encountered, denqininated " poor," "good," 
"rich," according to the relative quantity of the precious 
metals they contain to the ton of 2000 lbs. of ore. Profit- 
able working, however, is not exclusively confined to the 
"good" or "rich;" the "poor" may be advantageously 
worked, depending upon the cost of mining and expense of 
extracting the gold. 

From evidence given to me by several of the former 
owners, and workers of this mine, men of experience and 
ability, with whom I have had free personal intercourse, 
several of whom I am happy to say have made large fortunes 
from their working, and good management of this deposit 
of wealth ; from information derived from official surveys, 
and reports of geologists; from conversations with min- 
ing experts, and engineers who have examined it, and from 
my own personal observation and study of the mine on the 
ground, it is most conclusively shown, and in my opinion 
proven beyond the possibility of doubt, that its ores are yet 
abundant in free gold, and, I may say, immense in that con- 
tained in the sulphurets — showing no signs of failure; but 
as the shafts are sunk deeper and drifts extended from levels, 
the quality of the latter will be found to increase and they 
become richer. 

V. Brief History ofthe Former Workings of the Mine. 
Chilian Process of Extracting the Gold. Product 
obtained. Amount lost. 

This mine has been worked spasmodically, I may say, in 
various periods from 1842 to 'the present time — 32 years; 
the pure gold ore having been treated mostly by the process 
known as the Chilian. During the war all gold operations 
were interrupted, and books and records destroyed, and the 
sulphuret ore was treated for obtaining sulphur for the Con- 
federate army's use. 



12 

In 1870-71, Mr. Amos Howes resumed operations and 
has worked the mine to the 1st of June, 1874, about three 
years. 

The Howes Mill house is seen represented as No. 5 on 
the sketch, containing " Chilian Stones" — the requisite 
"Jaw crushers," "drags," " rockers," steam engines, pumps, 
etc. etc. 

In the thirty-two years the mine has been worked, I am 
satisfied, and so is Mr. Crosby, the Company's General Man- 
ager of the mine and mills — that $5,000,000 worth of free 
gold, in the ore has been produced, but at what profit, in 
the whole ^^er ton of the ore, it is impossible to state, not 
knowing the total number of tons used, nor the expense of 
mining, nor the expense of extracting the gold by the Chi- 
lian process for the whole period of that product. 

Mr. Crosby estimates the cost of producing this $5,000,000 
at $2,250,000 ; leaving a net of $2,750,000 to the producers. 

In Mr. Emmons' report, already referred to, I find it 
stated, " in the years of 1854-56, for a period of nineteen 
consecutive months, during which all that was worked was 
" poor" ore from the Earnhardt Shaft, " west vein," the 
product, as shown from the books of the company, was 
$136,636.76, and the expenses were $76,429.00, leaving a net 
profit (for nineteen months) of $60,207.76." But as the 
report does not state the number of tons of all the ore used, 
I cannot give the net profit per ton ; still we perceive that 
the handsome net of $3168.83 per month average for that 
period, was realized from the ore denominated " poor." 

In Mr. Howes' three years period of working, he claims 
to have produced $200,000, using up 8400 tons of ore, re- 
alizing an average of $23.81 per ton. And he claims to 
have saved by his Chilian Mill process, 33 per cent, of all 
the gold in the ore used. He has not sunk the shafts an 
inch, nor extended the drifts of any consequence, but worked 
what was left in the mine by the miners. 

Embraced in this product there was a special result which 
I adduce to show the appropriateness of the terms " poor," 



13 



" good," and " rich," as applied to the ores in different parts 
of the same vein. Out of the Barnliardt shaft 75 tons were 
used, from which he realized $15,000 in free gold — a yield 
of $200 per ton. 

More of the special products I will not present, though 
there are plenty of them, for it is far safer for our company 
to use results in our calculations of average yields for long 
periods of working than to frame hopes upon an expecta- 
tion of always finding "rich" or even "good" ores in the 
veins. It is safer to take the " poor" with the " good" and 
" rich." 

Here I bring prominently to notice the great defects in- 
separable from the Chilian process at this important mine, in- 
asmuch as it realizes little or nothing, but from the free gold in 
the ore, leaving that which is combined tenaciously, whether 
chemically or mechanically, in the sulphurets unrealized. 

Professor Genth, after careful examination, reports in 
1871, that "down to that year only 20 per cent, of the gold 
in the ore treated was obtained by the Chilian or other pro- 
cesses used from the beginning ; leaving 80 per cent, lost on 
account of the imperfect process of the extractions of the 
gold." 

Applying Genth's ratios of per cent., or of the realized 
and unrealized, prior to 1871, to Crosby's estimate of the 
total amount of gold produced from the mine, it is easy to 
see there must have been in all the ore worked by all parties, 
$24,600,000 worth, and as $5,000,000 have been saved, 
$19,600,000 of gold in the ore must have been unrealized, or 
lost. 

The inability by the processes used to subdue the sul- 
phurets, and the non-prevention, in the extraction of the 
free gold, of the attenuated particles escaping before amal- 
gamating, are the chief causes of the enormous loss. 

On a careful analysis of data given me by Mr. Howes 
himself I find the cost for milling by the Chilian process 
in his mill, has averaged $13.64 per ton of ore worked. He 
told me his mill, running continually with three Chilian 



14 



stones with the requisite crushers, drags, rockers, etc., 18 
hours (the day's work), treated seven tons per day. 

He gave as the running cost of raising the ore to the sur- 
face and transportation to the mill, $7 per ton. 

In going back of Mr. Howes' operations, and even in- 
cluding his own, it is probably impossible for any one to 
ascertain more accurately than Mr. Crosby has estimated 
what the whole amount realized from the mine has cost 
under managements good, bad, and indifferent. The high 
price, which is increasing, and the inevitable loss of mercury 
floating oS" in the process of amalgamating and carrying 
with it much of the free gold, in minute particles, are heavy 
drawbacks upon the profits of this Chilian process. 

Tailings or scoria, from former workings, have been 
accumulating since 1842, and, notwithstanding the dissipa- 
tion, there is a large quantity in the immediate vicinity of 
the mine still left, which, having gone through the crushing 
and pulverizing operations of the Chilian mill, and having 
been subjected so long to the influence of the atmosphere, 
are in a favorable condition to be worked over by any pro- 
cess that can extract gold and silver from sulphurets. 
These, I find, extend for miles down the ravines, where 
they have been washed by the freshets. These tailings, in 
my opinion, possess value. 

VI. The Crosby Process for Extracting not only 
THE Free Gold, but likewise the Gold and Silver 

WITH IT, WHICH ARE TENACIOUSLY HELD COMBINED IN 
THE SULPHUKET OrES ; ALSO FOR EXTRACTING THE 

Copper contained in them. 

After recognizing the enormous loss of gold at the Gold 
Hill Mine, to say nothing of the vast amounts lost from like 
causes at other mines in our country, we shall be able to 
appreciate the ingenious eftbrts that have been exerted in 
the struggle to overcome these obstinate sulphuret ores. 
Of all who have entered the arena for this important pur- 



15 



pose, Mr. Crosby, after years of patient study, labor, and 
large expenditure of money, regulated by a highly scientific 
and practical mind, seems to be the only one who has suc- 
cessfully accomplished the desideratum of extracting the 
most valuable of the metals from sulphuret ores upon a 
scale large enough to meet the demands of the gold and 
silver and copper mining wants of our extended country. 
And there is no doubt in my mind that ere long this valua- 
ble practical process will be introduced in foreign countries 
wherever the sulphuret ores exist. 

Brief Description of the Crosby Process. 

The ore is thrown by hand into a crusher, which 
reduces the lumps to the size of a hickory nut and smaller; 
thence passing into a pulverizing machine it is reduced to 
the size that would go through a mesh of 8 or 10 to the 
inch ; thence passing into a heated cylinder which revolves, 
carrying the ore around with it, the ore becomes roasted 
and all the sulphur utterly burnt out, the fumes and delete- 
rious gases escaping through a funnel-shaped chimney into 
the upper air, and thus keeping the atmosphere in the mill 
healthy for the operatives. 

After the ore is sufficiently roasted to completely de- 
sulphurize it, it immediately passes through a cooling 
trough or tube, laid in cold water, and thence into a 
burr m.ill, where between the upper and nether stones it 
is ground to powder. In this state the ore is elevated into 
leaching tubs, into which water is now also admitted, and 
the leaching of the ore is continued six hours; then the 
water is drawn off into appropriate vessels in which the 
copper is precipitated by iron, and saved. After this, the 
ore pulp, which is in a condition of paste freed from copper, 
passes into wooden amalgamating tanks, into which the 
mercury is let, and the mass is stirred for six hours. This 
stirring is done by a belt from the shaft whirling the arms 
of the stirrer within the tanks with a properly regulated 
velocity. After sufficient stirring, the mass of combined 



16 



ore pulp and mercury is diluted with water to the brim of 
the tanks, and after six hours drawing off, the amalgam of 
gold (holding with it the silver, if any be in the ore) is 
found in a close strainer box at the bottom of the amalga- 
mating machine, and the free mercury which is left is forced, 
by a most ingenious contrivance, back without loss into the 
tank to unite with another batch of ore paste which imme- 
diately comes in to be amalgamated. 

It is evident from this description, I think, that in this 
process neither the attenuated particles of gold nor the mer- 
cury can escape during the amalgamation, as it all goes on 
in close confinement. If not evident from the description, 
one has only to examine the machine to be convinced not 
only of this fact, but also that all must be saved that is of 
any value in gold or silver contained in the ore pulp after 
entering the amalgamating tanks. The copper is precipi- 
tated and saved without being allowed to enter the amalga- 
mating tanks. One might think, that during the roasting, 
gold may escape up the chimney in free attenuated parti- 
cles, or in combination with gas from the sulphur; and 
that there may be an escape of very fine particles of gold 
during the grinding. But I understand Mr. Crosby — in 
the arrangement and mechanism of his machinery — has 
successfully provided for preventing these contingencies, so 
as to experience very little, if any, loss of gold or mercury 
during the whole action of the mill. The whole process, 
from the time when the raw ore enters the crusher to the 
time when the amalgam is taken from the strainer box, is 
by a continuous motion of the ore passing through the 
several machines composing the mill, until reaching the 
leaching tubs, with but very little labor in personal 
handling. 

The amalgamation completed, the amalgam is taken 
from the strainer box to be retorted in the usual way to 
separate the gold and silver from the mercury. The mint 
separates the gold from the silver, and returns to the com- 
pany the true value of each. The "gold buttons," so 



17 



called, coming from this miae are the purest, I am told, of 
all received at the Philadelphia mint. 

VII. Experimental Results of Working the Crosby 

Mill on a Large Scale in Virginia. 

Being impressed with the advantages of this new pro- 
cess, an association of gentlemen engaged the inventor to 
put up a mill, iu 1872, on the Old Dominion (undeveloped) 
mine in Virginia, owned by some of the associates. Diffi- 
cult sulphuret ores were there tried as the}' came from the 
Virginia, as also from the North Carolina mines, especially 
from the Yadkin Mine, whose ores are the most obstinate 
sulphurets. Tons of the sulphurets and old tailings were 
sent to the mill from the Gold Hill Mine, whose ores are 
easier to crush. The results of these experiments are par- 
ticularized, and duly recorded in my published pamphlet, 
"Discussion," of January 1, 187i. 

The results were, that the mill, as then constructed, with 
all its newness, and consequent imperfections, saved to the 
pocket 86 per cent, as the least, and 93 per cent, as the 
mean or average of all the gold the assay showed the ore 
and tailings to contain before treatment. 

VIII. Operations of Mr. Howes and the Associate 
Owners concerning the Mill, subsequent to the 
foregoing experiments. 

Mr. Howes, after going to witness the working of the 
Crosby Mill upon ores sent from his own mine, made over- 
tures of so liberal a character as to induce the owners of the 
mill to move it from Virginia to Gold Hill, and plant it on 
his ground, to work the sulphuret ores from his mine of 
average assay, as shown in former assays, of not less than 
$20 per ton, and from that up to $10, as he represented they 
would be. 

The points of the contract were as follows : — 

1. The contract to continue in full force for ten years. 



18 



2. He to furnisli the ore, not less than 20 tons per day, to 
the mill, and to be paid therefor, out of the gross proceeds 
of the milling, $7 per ton. 

3. He to furnish all the fuel required for running the mill 
at $2 per cord, delivered. 

4. All the water required to be allowed gratis from the 
surplus of that pumped from his shafts. 

5. He to allow the mill out of the gross proceeds $3 per 
ton for milling the ore. 

6. After deducting $10 per ton from the gross proceeds, 
to meet items 2 and 5, the remainder of the proceeds was to 
be divided equally between Mr. Howes and the mill owners. 

Eelying in good faith upon Mr. Howes' fulfilment of his 
stipulations, 84 tons of steam machinery, shafting, and other 
parts of the mill were moved late in the autumn of 1873, 
and the mill re-erected, under the vigilant personal care of 
Mr. Crosby (with such enlargements of house, and improve- 
ments of parts, as the first construction had shown to be 
desirable), on the spot of eight acres shown on the sketch 
as No. 8. 

In February the associate owners of the mill were organ- 
ized into an incorporated company, under the charter cited 
in Chapter I. of this Eeport, by the title of " The North 
Carolina Gold Amalgamating Company." 

At the meeting of stockholders for organization, John 
Hulme, Esq., since deceased, of Philadelphia, was chosen 
President. 

The mill was reported to be in successful operation about 
the middle of March, but not yet to the capacity in machinery 
requisite to treat 20 tons per day. 

About the 23d of March last, the President, with a quorum 
of the Board of Directors, including the Executive Committee 
of the company, visited the new mill and the mine at Gold 
Hill. 

The Crosby Mill was run for some days upon several tons 
of ore in their presence, and proved conclusively that the 



19 



Crosby process is a perfect success — quite up to the capacity 
and advantages the inventor claims for it. 

The mill saved, and has cortinued to save, 86 to 95 per 
cent, of the gold in the ore. Only a fraction of gold was 
found in the tailing; there was little, if any, wastage or 
flowering of quicksilver: the mill was a success. But the 
Committee discovered very soon that unless money were 
advanced by the company to Mr. Howes, be could not possi- 
bly fulfil his agreement to furnish 20 tons of profitable ore 
to the mill per day, nor even 3 tons. His continual call has 
been for money, money, money, to repair his boilers, engines, 
pumps, etc., so he could furnish the ore. 

The company did advance its acceptances amounting to 
$1500, for which he was to get out and pile up at the mill 
200 to 250 tons, ready to be worked as soon as it could be 
got ready to run. This ore was to be of extra assay, highly 
profitable to mill. He delivered from 50 to 100 tons : but 
when the time came to work it, none of it assayed, before 
working, more than from $8 to $12 per ton, and most of it 
was rejected as worthless. 

It was also discovered that he could not furnish fuel, as 
he agreed, to the Crosby Mill, without an advance of money. 

IX. Operations from the time of Discovering Mr. 
Howes' inability to fulfil his Agreements to the 
TIME of President Hulme's Sudden Death. 

Under the foregoing circumstances of Howes' non-compli- 
ance, it was from prudential motives thought best not to put 
in immediately the additional machinery requisite to enable 
the Crosby Mill to treat 20 tons per day, until the company 
could be certain of being furnished that amount to mill. 
Nevertheless, the mill worked on upon a few tons of ore per 
day, returning gold once or twice per week to the Treasurer, 
in quantities sufficient to accumulate proof upon proof of 
the great value of the process, and of the ability of a 20 ton 



20 



mill to return large profits, and the exceeding value of the 
niiue. 

On the 30th of March Mr. Howes made, in writing, a pro- 
position to Mr. Hulme for selling the mine to a joint stock 
company (not the mill company), with a view of improving 
its machinery, deepening the shafts, extending the drifts, so 
as to furnish 120 tons of ore per day. The mill company 
to erect additional mills to work this amount. 

Mr. Hulme had, from his own personal examinations, be- 
come so strongly impressed with the value of the Crosby 
process as applied to the ores of this mine, also of the value 
of the mine, that he fixed the capital stock of the proposed 
mining company at $1,000,000, and was about organizing 
the company, when he suddenly died on the 22d of April 
last. 

X. Action after Mr. Hulme's Funeral, to the 1st 

July, 

Another able gentleman and excellent financier, Dr. J. D. 
Mitchell, of Wellsboro', Pa., who had carefully examined 
into the matters of the process, and made the mine a subject 
of study during a protracted visit at Gold Hill, in the last 
winter, while the mill was being built, came forward with a 
well-digested plan, diftering, however, from the Hulme 
plan. It was this in substance : The North Carolina Gold 
Amalgamating Company to increase its capital stock to 
$1,000,000, purchase the mine, with all the property, real 
and personal, connected with it, thus merging the Crosby 
mill, and the mine and mining property all into one owner- 
ship, which the said company could legally do under the 
conditions expressed in its charter. 

The purchase was made, terms of payment agreed upon, 
and approved by the stockholders. The deed was duly ex- 
ecuted by Mr. Howes and wife to the company. The pro- 
perty was taken formal possession of by the company on 
the first of June. 



21 



Dr Mitchell was elected financial agent to negotiate the 
sale of $350,000 of stock, the company reserving in the 
treasury $50,000 of the stock for working capital for im- 
mediate purposes. 

Dr. Mitchell was also elected president to fill Mr. ITulme's 
place, and entered on his duties as such first of June. 

n.e had previously arranged with certain capitalists at a 
distance, with whom, on a personal interview, he was to 
place sufficient of the stock in his possession, to realize 
$150,000 in cash, as the company should need it, upon an 
absolute sale of the stock. 

He was to start on his mission 10th June, but was pros- 
trated by a severe attack of illness. On the 24:th, finding 
himself, as he thought, sufficiently recovered, he started, but 
before reaching his destination he was again seized with 
another attack, more severe than the first. He reached his 
home, where he has since lain, neither able to talk nor 
write. 

He dictated his resignation as president of the company 
1st July, but not his fiscal agency. It is hoped by his phy- 
sicians he may be able in a few weeks to resume his fiscal 
duties. 

Lloyd P. Smith was elected president of the company in 
place of Dr. Mitchell, and accepted the appointment July 
4th, 1874. 

Since purchasing the mine activity has prevailed under 
the company's General Manager there. Mr. Crosby expects 
to have the new mill supplied with the requisites to treat 
twenty tons per day, by the first of August next. The 
crushing rollers and burr mills are nearly finished, and will 
soon be shipped. 

Two new boilers for the Randolph shaft are to be finished 
in a few days ready for shipment. 

Two more new boilers have been ordered for the Earn- 
hardt shaft, but these will not be done till first of August. 

A new pump has been put into the water shaft (No. 9 on 
the sketch), and pipes laid to conduct good water that will 
8 



22 



not injure the boilers; this pump to be worked by the en- 
gine-power in the Kandolph shaft house. 

The machinery at the Randolph and Earnhardt shafts has 
been put in good order, so that, as soon as the new boilers 
referred to can be put in, no more new machinery for the 
present will be required at these shafts. 

Since the purchase many old miners have returned to 
the mine and gone to mining at their own expense for 
i' tribute ore," which contains free gold. This ore can be 
profitably worked in the old mill, and Mr. Crosby has agreed 
to work this tribute ore for them on mutual good terms. 
So while the new mill has been necessarily stopped to re- 
ceive the two additional roasters and burr mills, the Chilian 
mill sends to the treasurer weekly buttons of gold from the 
tribute ore. 

The Earnhardt shaft is being sunk deeper, and the drifts 
are to be extended, as soon as boilers can be placed to lower 
the water, by extending the 700 feet level drift from the 
Randolph shaft, 26 feet in one direction, and 20 feet in an- 
other direction. Mr. Crosby expects to reach very rich 
ore. 

Mr. Crosby is utilizing all the property, of which there is 
much at the mine, and has reduced very materially expenses 
as compared with those of Mr. Howes, and will in a few 
months produce greater results, no doubt. 



23 

XL Elements or Data by which to estimate the 
Profits to he expected from working the Crosby 
Process at this Mine. 

1. The sulphuret ores containing the gold are easy to 
pulverize and much easier to crush than quartz ores. 

2. The cheapness of fuel, being from $1.25 to $1.75 per 
cord, delivered and piled in the yard. 

3. The cheapness of living and consequent low price of 
labor, ranging from $1 for the best laborers, up to $3 for 
the best mechanics. 

4. The facility for a sufficient supply of good water that 
will not corrode the boilers. 

5. The proximity of the mine to all the principal com- 
mercial cities. 

6. The smallness of the amount of capital yet necessary 
to improve the mine hj deepening the Randolph and Earn- 
hardt shafts, and extending the lower drifts, and opening 
new drifts lower down than the present drifts to strike the 
richer ores of the veins. 

7. The general manager (A. B. Crosby) of the mine and 
mills and his present assistant for work above ground (Mr. 
Noble), both being large stockholders in the company, and 
Mr. C. Crosby the mining engineer, for underground work, 
are all intelligent, reliable, and of great experience in their 
several capacities. 

8. The cost of treating the ore by the 20-ton crushing 
mill, including wear, tear, and repairs for keeping the mill 
up to an efficient working condition, is $4.07 per ton. The 
cost of a 50-ton mill is $2.57 per ton. The cost of mining, 
raising, and delivering the ore, after the contemplated im- 
provements are made, will average not exceeding $4 per 
ton. 

9. As before stated, the Crosby process saves 86 per 
cent, as the least, and 98 per cent, as the average, of all the 
gold, silver, and copper in the ore, as shown by the assay 
before and after working it. It is capable of saving 99 per 



24 



cent., but to continue working beyond the attainment of 95 
or 96 per cent, would be too much like splitting hairs. 

10. The commodity produced has no fluctuation in value 
in the market, being in this respect far superior to all other 
commodities, for which the manufacturer has too often been 
embarrassed by instability of price. 

With the foregoing data any one can, by reference to the 
assays of the Gold Hill ores reported in the next chapter, 
compute for himself the probable profits to the mine and 
mills by working a "20-ton" or a "50-ton" mill upon any 
given number of tons of ore. 

XII. Assays of the Gold Hill Ores. 

This part of the report merits the close scrutiny of the 
company. It is the average of the assays of parcels from 
many different parts of the mine that determines the value 
of the ore in general, rather than a few assays of particularly 
selected specimens. Therefore, in the subjoined examples 
of assays, a, b, c, d, it is to be understood they are the average 
assays of as many different lots of ore. 

a. From Earnhardt shaft ia 1850, 844 tons of ore 

averagt d in assay $699 05 per ton 

b. From Earnhardt shaft in 1856, 3800 tons aver- 
aged (poor ore) $179 75 " 

c. From Randolph shaft (rich ore), in 1872, 75 

tons averaged $606 06 " 

d. From the mine generally prior to 1872, 8325 

tons averaged $ 67 33 " 

Giving to each lot a, h, c, d, its own special weight in the 
computation, I find that, for their aggregate of 13,044 tons, 
the mean assay was $144.05 per ton. 

After sinking the Eandolph and Earnhardt shaft each 
from 50 to 100 feet belov.^ their present bottoms and drifting 
about 150 feet from each at levels 50 feet below the lowest 
present drifts in the mine, we have every reason to believe 
we shall meet with a very large amount of sulphuret ores 



25 



certainly as rich on an average as the above mean of $144.05 
per ton, and even richer in gold and copper. 

Mr. Howes worked 8400 tons, principally leavings of 
former miners and considered by them as refuse, without 
sinking the shafts or extending the drifts, of which in free 
gold, the average of assay was $72.15 per ton, without 
counting the gold or copper tenaciously combined in the 
sulphurets. 

Of 500 chemical analyses he has had made he informs me 
as follows, viz. : — 

The least average assay gave in gold and copper $57.50 
per ton. 

The greatest average assay gave in gold and copper 
$11,656.00 per ton. 

The official United States assay, and the experimental 
assay as determined by the Crosby Mill of the old tailings of 
the former workings give their average or mean assay 
$21.91 per ton. 

From a recent return of the mill's working on these tail- 
ings for several tons, the certificate from the United States 
mint showed that there was realized over $22 per ton. 
The average of that lot before working must have been more 
than $23 per ton. 

XIII. Probable Profits to the Company from the 
Mine and Crosby Mills. 

There will be no profit in working upon ore assaying as 
low as $8.67 per ton by a " 20-ton" mill ; nor will there be 
any profit from a "50-ton" mill working on ore assaying as 
low as $7.06 per ton; but at these assays, the mills would 
just pay expenses. But for assays higher than these, the 
mills would return a certain net profit for the milling and 
mining as long as the ore does not cost over $4 per ton de- 
livered at the mills ; and the profit would be proportionally 
greater as assays should be higher. 

I submit the following expression of net profits working 



26 



by the Crosby Mills on ores of various average assays per 
ton of ore for each mill at the Gold Hill Mine. 



Average assay per 


Net profit per ton by a 


Net profit per ton by a 


ton. of raw ore. 


20-ton mill. 


50-ton mill. 


17.06 


$1.50 loss per ton. 


$0.00 per ton. 


8.67 


0.00 " " 


1.50 profit per ton. 


20.00 


10.53 profit " 


12.03 " " 


30.00 


29.83 " « 


31.33 " " 


4('.00 


29.13 " " 


30.63 " " 


144.05 (mean of a, h, c 


d) 125.90 " " 


127.40 " 


200.00 


177.93 " " 


179.43 " 


250.00 


224.43 " " 


225.93 " " 


It is calculated 


that the mills would work excluding 


Sundays, 300 days 


in the year. 




The annual profits from working on 


the ore of the foi e- 


going assay would be as follows : — 




Average assays per 


Annual net profits by a 


Annual net profits by a 


ton of raw ore. 


20-ton mill. 


50-tou mill. 


$7.06 


$900.00 loss per an. 


$00.00 per an. 


8.66 


00.00 " " 


2,250.00 profit per an. 


20.00 


6,318.00 profit " 


18,045.00 " " 


30.00 


11,898.00 " " 


31,995.00 " " 


'''0.00 


17,478.00 " 


45,995.00 " " 


144.05 mean (a, 6, c, d) 


75,540.00 " " 


191,100.00 " 


200.00 


106,758.00 " " 


269,145.00 " " 


250 00 


134,658.00 " « 


338,895.00 " " 



There are two incidental sources of considerable profit 
in working by the Crosby Process to which I will briefly 
refer. The sulphur which is liberated in desulphurizing the 
ore amounts to something like 350 lbs. to the ton of ore. 
This can be easily utilized — converted into sulphuric acid by 
a very simple attachment, giving large results of this article 
of commerce. 

Again. The final tailings, after the gold and copper are 
extracted, I know, by actual examination, are a substance 
already prepared, only requiring drying and barrelling, con- 
stituting an excellent mineral paint, of superior color and 
durability. From a 20-ton mill I estimate a net profit to 



27 



the mill of not less than twenty-five to fifty dollars per day 
from utilizing this paint. 

By examining the foregoing expressions of profit, it is 
easy to see how perfectly Mr. A. B. Crosby, the general 
manager, is justified in the following opinions, which I 
quote from his letter to me. 

" In answer to your request for an expression of my 
"views of the Gold Hill Mine, I will briefly say that I 
"think it has been and still is, and will be, with proper 
" working, one of the very best in this country. I base 
" this view upon its history and my own observations. 

"It has produced, in the opinion of those who are well 
" acquainted with the early working of it, and who had made 
"fortunes themselves from it, at least five millions of dollars. 

" The work done on the mine could be done now, or could 
" then have been done with proper facilities and a proper 
"system of mining, including all equipments, and the mill- 
" ing of the ores for less than two millions — I think not to 
"exceed one and one-half millions of dollars. 

"The veins in this mine are true fissures, and have been 
" worked in length about one thousand feet, and in depth 
" from ninety to seven hundred and fifty feet, and are situ- 
"ated in a belt many miles in length. 

"Several experts, or persons acquainted with the mines 
" of California, Colorado, Montana, Utah, Mexico, etc., have 
"expressed decided opinions upon the Gold Hill Mine, cou- 
" current with my own. 

" As to the value of this mine, if based on the amount of 
" net proceeds, with a proper working to its full capacity, it 
"would be enormous. And it is well worth in dollars the 
" whole amount of the capital stock of the company. 

" The process and its cost, by which we intend to work 
" the ores you are well acquainted with, so I will say nothing 
" in regard to it. 

" Yours, very respectfully, 
(Signed) " A. B. CROSBY, Manager." 



28 



It is seen that the " 20-ton mill" alone working on the ore 
of an average assay of the mean of a, b, c, d, would return 
7J per cent, dividend upon all the capital stock at par 
annually. 

A " 20 ton mill" and a " 50-ton mill" together would return 
26f per cent, on the capital stock at par. 

And as the ore would run higher and higher in average 
assay as the shafts are deepened, and drifts extended, and 
mills for treating the ore multiplied, the returns or dividends 
would be vastly enlarged upon the foregoing figures. For 
example, one 20- and two 50-ton mills running on ore of the 
mean assay would return 4:6 per cent, on the par value of 
the stock. 

XIV. Policy of Working the Mine. 

Enough has bow been said pointing to the true policy of 
the Company in respect to managing their valuable proper- 
ty, and the policy may be clearly indicated by following, 
seriatim, the following estimates, A, B, C, of funds re- 
quired : — 



Estimate A. 

For pumping to clear llandolph shaft $2,000 

For burr-mills and stones, and freight .... 1,500 

For crushing-rollers and freight 800 

For four new 30-horse boilers and freight .... 6,000 

For fuel for July, August, and September .... 600 

For services of employes July, August, September . . 2,100 

For contingencies ........ 500 



$13,500 

Of this, $10,500 will be required between 15th July and 
1st October, and $3000 by the 15th October next. And 
soon after the above articles in Estimate A are received at 
Gold Hill, the 20-ton mill will be in operation, treating 
20 tons per day, except for the reduction of the copper in 
the ore. 

By the time — say 1st November next — the above Esti- 



29 



mate A shall have been expended, I think it quite likely 
the mill will be sending in handsome returns — sufficient, at 
all events, to carry on the pumping, the deepening of the 
shafts, and extending the drifts. 



Estimate B. 

Deepening both the Randolph and the Earnhardt shafts, 

(100 feet each) $6,000 

2 winches for " stoping" 1,875 

300 feet drifting at $7 per foot 2,100 

Temporary contingencies . . .... 300 

Timber and labor for new cribbing to the deepened parts of 

the shafts . . . . ' 1.000 

Hoisting machine and gearing for three shafts . . . 3,000 

5000 feet wire rope at 37 cts 1,8.50 

Ladders for shafts 200 

Platforms and roofings ....... 1,.500 

Tramway from shafts to mills 1,400 

8 iron cars for ore transportation at $150 .... 1.200 



$20,425 

I think it would be advisable to make arrangements for 
this (Estimate B) by providing funds to this amount by 
about the 1st of* November next. 

Hence, the amount of funds required for construction and 
wages of employes will be as follows: — 



Between 15th July end 1st October, 1874 .... ,$10,500 

On the 14th October, 1874 3,000 

On the 15th November, 1874 20,425 



Total $33,925 



Further than this there will be no necessity for funds 
outside the income of the mills to apply to the improve- 
ment of the mine to a degree contemplated for furnishing 
70, or even 120 tons of profitable ore, to be milled per day. 
The Company should not fail, however, to provide funds in 
accordance with the above estimates. 

After the foregoing expenditures are made, and the re- 
turns from the mill shall justify, the following expenditure 
will undoubtedly be required, but no especial immediate 



30 



efforts need be made to raise the funds, though it is good 
policy to keep this prospective expenditure in view in 
arranging the finances of the Company: — 



Estimate C. (prospective). 

Copper apparatus for the 20-ton mill $ 6,000 

Two 50-ton Crosby Mills, complete . . . . ' . 60,000 
^Renewal of cribbing in upper parts of shafts . . . 4,500 

Additional hoisting machinery 3,000 

Renewal of platforms and repairs to roofs . . . . 1,500 
Fifty new tenement buildings, for decently housing 250 
employes, and repairing some old ones. For these 
rent would be paid to the Company .... 10,750 
Probability of new power-saving mine pumps being re- 
quired 10,000 

Probability of more pure water than the present supply 
being required ; my former estimate for these water- 
works 7,000 

$102,750 

Of course it is expected that the funds in this estimate C 
will be realized out of the profits of the 20-ton mill as fast 
as needed for the prospective outlays. 



XV, Schedule and Cash Valuation of the Company's 
Property at Gold Hill. • 



1. One 20-ton Crosby Mill, with all its machinery complete $22,000 

2. Patent right paid for the process of working all the ore 

in the mine 15,000 

3. Two new small tenement houses on this mill lot . . 200 

4. Two good steam engines, one at the Randolph and one 

at Earnhardt 2,500 

5. Four new 30-horse boilers, two at each shaft . . . 6,000 

6. Cornish pumps in good condition in the shafts . . 15,000 

7. New pump in water shaft, pipes, and reservoir . . 900 

8. Hoisting apparatus, wire rope, etc., at the shafts . . 3,000 

9. One Chilian Mill, with crusher, stones, rockers, drags, 

buddies, etc., complete . 16,000 

10. Whims at the shafts 1,200 

11. Platforms at the shafts 300 



31 



12. Roofings at the shafts $1,500 

13. Mining and blacksmith tools, machine shop tools, 

lathes, etc. etc., shops, etc 2,500 

14. Mansion house, eight acre lot and all out-houses and 
improvements thereon 5,000 

15. 800 acres of surface of land exclusive of the ores under 

the surface, $5 per acre 4,000 

16. 300 acres of the Lentz place on which the e are 4000 

cords of wood standing ....... 1,600 

17. 20,000 tons of tailings, average assay of $21.91 per ton, 

at SI per ton 20,000 

Valuation exclusive of mine .$125,500 



If we had all the money in hand for the purpose of the 
improvements above enumerated, they could not be placed 
upon the property for the sums above estimated. 

XVI. Valuation of the Mine Exclusive of the Value 

OF THE PkOPERTY SCHEDULED IN XV. 

On the return of Mr. John Hulme from the property of 
the Company last April, he expressed himself in the follow- 
ing terras regarding its value: "That he considered the 
Company's property worth at least $1,000,000; also that 
were he to express half of what he believed and knew re- 
garding the value of the mine, he would not be believed." 
This opinion has the more weight inasmuch as Mr. Hulme 
had formerly been engaged for three years in gold-mining 
operations in North Carolina ; and, moreover, he was of a 
cautious disposition, and careful to say nothing that could 
not be relied on with confidence. He had agreed to provide 
all the money necessary to develop the property when he 
unfortunately died. 

In making up my mind as to the value of this deposit of 
auriferous sulphurets, to say nothing of free gold, I prefer 
not to jump at conclusions and say the mine is or is not 
worth one million of dollars. This is a large sum it is true, 
but there are much larger sums in thousands of businesses 



32 



aud other property not so certain or safe from destruction 
as this mine. 

Suppose we improve the mine and add the two 50-ton 
mills to the property by additional outlay of $136,675 ; the « 
total of estimates A, B, C, we should then be in condition 
not only to raise 120 tons of ore per day, but we should be 
able to mill that amount. 

I Again. Suppose we should get ore for the mills to work, 
assaying only twenty dollars per ton, which is an extremely 
low estimate and very far below what would be realized 
from the mine ; nevertheless, upon this assay of ^20 to the 
ton, as the ore delivered at the mills would cost the company 
not to exceed $4 per ton, and the milling averaged to the 
three mills, $2.65 per ton, it is easy to see that the net profit 
of the mills would be $12.03 per ton, and the annual net 
profits to the company would be . . . $430,200.00. 

In the stated costs of mining and milling there is already 
included 25 per cent, per annum on the capital invested in the , 
machinery, etc. for wear and tear, contingencies, etc. So we 
have only to deduct, say ten per cent, per annum on the con- 
templated outlay of said $136,675, which would be$13,667.50 
from the above net profits, and we shall have a net annual 
income from the property of $416,532.50. Suppo.se now we 
allow $16,532.50 as salaries to the Company's officers, and 
manager, etc., we shall have left $400,000. This is 10 per 
cent, per annum on four millions of dollars clear. And how 
much greater would be the valuation of the mine based, as 
it should be, on ore assaying not less than $40 per ton? 

I have thus shown how to make this mine worth not less 
than four millions of dollars. 

All of which is respectfully submitted. 

To T. J. CEAM, 

Lloyd P. Smith. Esq., OonsuUing Engineer. 

President, 



Philadelphia, July 13, 1874, 



APPEi^DIX. 



A. 

Charter. 

An Act to Incorporate the North Carolina Gold Amal- 
gamating Company. 

Sec. 1. The General Assembly of North Carolina 
do enact : That T. J. Cram, B. Arthur Mitchell, Au- 
gustine B. Crosby, Joseph Q. Mitchell, and Lloyd P. 
Smitli, and their associates, successors, and assigns, or 
any three of them, be, and they are hereby, created and 
made a body politic and corporate, by the name, style, 
and title of" The North Carolina Gold Amalffamatinoj chaner of 

° the iN'ovth 

Company," and by such name and title shall have Carolina 

. , . „ , o ■■ • • Gold Ainal 

continual succession for the purpose of working, mm- garaat.ag 
ing, milling, jjurchasing, manufacturing, smelting, 

, . , , ■ J. ,1 Business o 

assaying, reducing, or otherwise treating ores, earths, tueCompa- 
minerals, and metals, and for building, erecting, and 
owning machinerj'' and fixtures for any of said pur- 
poses, or for sale, barter, or exchange, aud for holding, 
owning, leasing, mortgaging, or selling such real or 
personal estate, as may be necessary in connection 
with the other privileges herein granted, and to erect 
houses, mills, and other buildings upon, and otherwise 
improve any lands leased or held by them, and for 
making, buying, and selling such matters and things 
as appertain to their business, and shall be capable of 
suing and being sued, impleading and being implead- 
ed, and of having and using a common or corporate corporate 
seal, and the same to alter aud change at pleasure, and 



34 



of granting and receiving in its corporate capacity 
and name, property, real, personal, and mixed. 

Capital. Sec. 2. The minimum capital stock shall be one 
hundred thousand dollars, shall be divided into shares 
of not less than one hundred dollars each, with power 
to increase the capital stock from time to time by a 
majority vote of the stockholders, to a sura not ex- 
ceeding two millions and one half dollars. 



Office of the 
Company. 



Board of 
Directors, 



Officers of 
Company. 



Sec. 3. The principal oflSce of the company shall be 
at Gold Hill, Rowan Co., with such branch offices, 
located wherever they may deem proper, as may be 
necessary for the transaction of the business of the 
company, and the affairs of the company shall be man- 
aged by a board of directors, of such number as the 
stockholders may select and choose, a quorum of whom 
may be such number as the stockholders may name, 
but for the purpose of organization, the corporators 
herein named shall constitute the board of directors, 
and shall hold oflSce until their successors are elected 
and qualified. The otficers of the company shall be a 
president, and such other officers as the board of di- 
rectors shall name, and all offices, except president, 
may be abolished or combined by a majority vote of 
the stockholders. 



No indirid- 
ual respon- 
sibility. 

By-Laws, 

etc. 



Sec. 4. The subscriptions to the capital stock of said 
company shall and may be paid in such instalments, and 
in such manner, and in such property, real or personal, 
as a majority of the corporators herein named may 
determine, but the stockholders of this companj^ shall 
not be liable for any loss or damage, or responsibility 
beyond the assets of the said company, and the said 
company may make, alter, repeal, or amend such by- 
laws or regulations, covering all points of organiza- 
tion and business not herein specifically provided 
for, as they may deem necessary and proper. Pro- 
vided, the same are not inconsistent with the Consti- 



35 



tution of the United States, or of tl)is State, or the 
provisions of this act. 

Seo. 5. The said company may issue certificates of Certificate 
stock in such form, and subject to such regula- "'^ 
tions, as thoy may from time to time prescribe, with 
power also to issue bonds with coupons attached, or 
other evidences of debts, borrow money, and buy and 
sell patent-rights, and dispose of privileges, to work 
under, and use said patents, or portions thereof, re- 
serving royalties or payments under the same, in such 
way and manner as they may prescribe and regulate, 
and direct in what manner their contracts and obliga- 
tions shall be made and executed, and generally to do 
all other matters and things necessary to the prope)' 
and successful transaction of the business for which 
it is organized. 

Seo. 6. This act shall be in full force and effect from Date of in- 
and after the date of its ratification: in general assem- '^""'P'^'*'""' 
bl}- read three times, and ratified this 30th day of 
January, A.D. 1874. 

(Signed) J. L. ROBINSON, 

Speaker of the House of Representatives. 
(Signed) C. H. BROGDEN, 

President of the Senate. 



86 



B. 

New York, July lOtli, 1874. 
Barton H. Jenks, Esq., Philadelphia. 

Dear Sir: Tours of yesterday to hand. You are 
mistaken in understanding me to say that I had been 
on the Gold Hill Estate in North Carolina, but from 
information and reports I have received at various 
times from a number of disinterested persons far 
more competent than mj'self to judge of its value, I 
am thoroughly convinced that it is capable, with good 
management, of yielding richer returns than any other 
gold estate known to-day anywhere. In fact I have 
never heard but one opinion expressed in regard to 
this property, and that in support of the facts of its 
immense value, and that only incompetent manage- 
ment can stand in the way of its enormous gold pro- 
duction. 

Yours truly, 

CHARLES HOPKINS. 



C. 

Balance Sheet. 



Dr. 

Real Estate, $287,053 77 
Patent Right, 120,000 00 

Construotiou Acc't, 283,566 69 
Reserve Stock, 400,000 00 
Expenses, Gold Hill, 4,429 59 
Bills Receivable, 7,905 02 
Interest, 346 51 

Expenses, 1,121 97 

Cask, • 7,641 35 



Cr. 

Stock Acc't, 
Mortgages, 
Bills Payable, 
Gold Product, 
Loan Acc't, 



$1,000,000 00 
52,000 00 
35,540 70 
4,423 10 
20,000 00 



$1,111,963 80 



$l,lll,9ii3 80 

E. E. WILLIAM F. MITCHELL, 

Treasurer, 

Pbii.adei.phia, July 15, 1S7*. 




OFFICE OF TUB COMPACT, 
y. E. Cornel' Third and Chestnut, Booms 7 < 




/