.AN ALL
ALASKA
NEWSPAPER
HYDER WEEKLY
DEVOTED TO THE DEVELO PMENT OF ALASKA AND THE PORTLAI
HERALD
CANAL MINING DISTRICT.
1 1 '■ •
SUBSCRIPTIONS
$5.00 PER YEAR
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VOL 4, NO. 30
HYDER, ALASKA, SATURDAY, APRIL 14, 1928.
FIFTY CENTS A MONTH
PREMIER BORDER
IS READY TO GO
Fully financed to meet all
development needs during the
coming season, the Premier
Border Gold Mining Company,
Ltd. will start development ac
tivities on the Virginia and
Border groups at 13-Mile on
April 15th. Activities" will be
under the direction of F. J.
Crossland, eminent Canadian
mining engineer and director
of the company, with Wm.
Bunting, prominent local min
ing man in charge of operat
ions.
Present plans for the Border
group contemplate the imme
diate extension of the present
tunnel, now in about 100 feet,
and a contract for the work
has been taken by L. R. Dog
gett. Mr. Crossland is expected
up from the south shortly and
will liy out further develop
ment plans for both the Bor
der and Virginia.
Ernest S. Parker, Winnipeg
millionaire and president of
the company, and Norman To
bias, secretary of the Border
Finance Company, Ltd., and
Mr. Parker’s representative in
the recent acquisition of the
Virginia, Border, Crest and
other prominent properties in
the same locality, are also ex
pected to arrive within a short
time.
Late advices report that the
Crest, Hobo and Portland prop
erties, the latter recently ac
quired from Arthur Moa and
M. D. Ickis, have been consol
idated under the name of Crest
Consolidated Gold Mines, Ltd.
in which Mr Parker is also the
leading figure, and will be op
erated as a unit under the di
ection of Mr. Crossland, with
Mr. Bunting in charge.
As there are two Hobo prop
erties in the Hyder district it
may perhaps prevent some con
fusion in the minds of readers
to state that the Hobo referred
to is the original Hobo, located
by Marius Pederson and Al
bert Johnson and has no con
nection with the McGrew Hobo
group recently taken over by
the Century Mines Incorporat
ion.
Both the Premier Border and
Crest companies have plenty
of money in their respective
treasuries and our readers can
rest assured that the district is
due to witness some great ac
tivity during the coming seas
on as a result of their entrance
into the Hyder district.
—— -o
The Campbell building on the
north side of International Av
enue, will become the home of
both the U. S. Commissioner’s
and U. S. Marshal’s offices,
with the completion of exten
sive interior alterations now in
progress.
The lower floor of the struct
ure, in which the Commission
er’s office is now located, will
be occupied by the Marshal’s
office. The upper floor will be
converted into quarters for the
Commissioner, including a
large office and a three-room
living apartment. A similar liv
ing apartment will also be in
stalled on the lower floor for
the marshal. The federal jail
will be located either on the
lower floor or in an adjacent
cabin, the exact location being
undecided at present.
■o
S. P. Fitzgerald, president of
the Independence Gold Mining
Co., returned Sunday from a
business trip to the jouth.
FUNDS FOR RIVER
PROTECTION RAISED
Temporary relief from the
Salmon River flood danger is
now practically assured as a
result of the splendid response
of Hyder citizens to the call of
the .Chamber of Comerce for
funds to defray the expense of
blockading and diverting the
long threatening and turbulent
stream into a safer course.
Never before in its history
has the camp witnessed a finer
manifestation of public spirit
edness and cooperation than
was displayed by our citizens
on this occasion. Not only was
the estimated $3000 contribut
ed within a few hours time
but also a substantial overplus
which, with other expected
contributions, may later bring
the total close to $4000. Con
j tributions ranged from $5 by
individuals to several hundred
by business concerns. In some
instances the givers exempli
fied the old war-time slogan,
by giving "until it hurt.” One
and all are deserving of the
utmost praise for their splen
did generosity in meeting the
crisis created by the failure of
the national government to
realize and help in overcoming
the danger which threatens the
entire community.
Details of the river situation,
showing that the river is high
er than the town and liable to
overflow its banks at the first
high water period, were laid
before a large gathering of
citizens at the mass meeting
called by the Chamber of Com
merce Tuesday evening. Pro
posals submitted by Messrs.
Wm. Gray and T. H. Evans to
turn the river from its course
by filling the present channel
with logs and other debris and
cutting a channel into a slough
near the end of the old jetty
a short distance north of town,
at an estimated cost of $3000,
were endorsed after an extend
ed discussion. Messrs. Gray
and Evans were named to sup
ervise the work, in conjunction
with a third party to be chosen
by themselves. It was further
decided that the full amount
of the estimated cost be raised
and placed in the Bank of Hy
der before work started and al
io that any overplus of funds
after the proposed work is
completed should be held for
repairs and future protective
purposes. Chairman Hovland
was also authorized to appoint
a finance committee of five,
with himself as chairman, to
collect the necessary funds,
^aid committee to report at a
second mass meeting Friday
evening. Messrs. T. H. Evans,
E. R. Stivers, N. M. Traversy
and Jack Gillis were later
named as the collection com
mittee by Mr. Hovland.
The second meeting convened
with the bulk of the property
owners present. After warmly
commending the splendid loy
alty shown by the community
in the crisis. Chairman Hov
!and announced that the avail
able funds totaled $3345, in
additon to a number of expect
ed contributions of substantial
sums and offers of labor total
ing $125. It was also announc
ed that Mr. Herman Nichols
had been selected as the third
member of the supervising
committee and would take
personal charge of the river
work. Mr. Hovland, to whose
personal efforts much of the
success of the drive for funds
was due, was named perma
NINETY-SIX MINING
COMPANY FORMED
Late advices from Tacoma
report the organization of the
Ninety-Six Mining Company,
by H. G. Henton and associates
to take over and operate the
well known 96 Group on Min
eral Hill. Details of the organi
zation are not yet available.
The company has been fort
unate in securing the services
of Harry Townsend as mining
geologist. Mr. Townsend will
report and map the property
and lay out a plan for future
development as soon as condit
ions permit. ■*
-o——
TITAN WILL
BECOME ACTIVE
Active development work will
be renewed on the well known
Titan property in the Fish
Creek area with a few days,
according to S. P. Fitzgerald,
president of the Titan Gold*
Mining Company, who return
ed from the south this week.
Until the snow goes, work
will be prosecuted in a small
way by a crew of 3 or 4 men
under Jack Fitzgerald and will
be- increased as condition war
rant.
-o
PROPOSES REPEAL OF
FEDERAL TAX LAWS
A bill providing for the re
peal of. existing Federal Tax
laws in Alaska and authoriz
ing the Legislature of the Ter
ritory to fix the amount of
taxes imposed on business and
industry has been introduced
in the lower house of Congress
by delegate Dan Sutherland,
according to a letter from the
delegate received by Attorney
Ernest Blue.
The present federal license
schedule was enacted many
years ago and imposes many
taxes which are unwarranted
by present conditions. The
bank tax, for instance, compels
all banks in the Territory, re
gardless of size or volume of
business, to pay an identical
tax of $500 per annum. Other
taxes are of a character to
seriously retard the develop
ment of certain business and
industrial enterprises, except
under the most favorable con
ditions.
The schedule is seriously in
need of revision and as there
is scant hope of Congressional
action of such character, the!
Sutherland measure seeks to
give the taxation power to the
Territorial legislature.
Mr. Sutherland states that so
far he has been unable to get
a hearing on the measure.
--—o
Gus Anderson, former Pre
mier foreman and later in
charge of the Premier operat
ions on the Prosperity group,
left recently for Millertown,
Newfoundland, where he will
take a position with the Bu
chanus Mining Co.
nent chairman of the River
Protection Fund Committee.;
E. R. Stivers was elected treas
urer of the fund and D. J.
Mulcare as secretary. They will
handle the accounts and dis
burse funds. The Bank of Hy
der was also designated as de
pository of funds.
Further details of the project
and the names of the various
contributors to the fund will be
published in next week’s issue
of the Herald.
REPORT SHOWS
LOW ORE RESERVE
IN PREMIER
Recent reports that the
known Premier ore reserves
have reached the lowest point
in the mine’s history, owing to
a failure to find more than a
moderate tonnage of new ore
during 1927, are confirmed by
the annual report of the Pre
mier Gold Mining Company,
copies of which came to
hand by the last mail.
The report discloses that the
combined broken and unbrok
en ore reserves at the close of
1927 were 163,732 tons less
than at the end of 1926. This,
the report states, means that
only a very moderate tonnage,
namely 80,440 tons of new ore
was found and opened up dur
ing 1927. The depletion is as
cribed jointly to the failure to
find additional ore deposits be
low the 5th level of the mine
and to unsuccessful efforts to
locate commercial ore to the
south and southwestward of
the mine workings, and along
the vein striking northwest
from the main ore zone.
The report also discloses that
the estimated ore reserve
amounted to no more than
634,537 tons on December 31.
This was 163,732 tons less than
on December 31, 1926. At the
present rate of production,
ranging around 244,000 tons a
year, the indicated ore reserve
is scarcely sufficient to keep
the famous mine in production
more than three years.
Following is a summary of
the report:
Ore mined during 1927 total
ed 244,172 dry tons, with an
average assay content of 0.49
oz. gold, 13.96 oz. silver per
ton. Of this tonnage 147
535 tons were milled at the
mine, 78,358 tons were ship
ped to Tacoma and 18,279 tons
to Granby.
Gold produced totaled 118,
842 oz.; silver, 3,396,082 oz.
The report gives no indication
of the quantity of lead produc
ed, although lead production
in 1926 totaled 492,320 lbs.
Development by drifts and
raises totaled 8,870 feet slight
ly more than during 1926. Dia
mond drilling totaled 4,816
feet, as compared to 9,409 feet
in 1926.
Estimated ore reserves on
Dec. 31, 1927, were as follows:
Broken in stopes 415,250 tons
averaging 0.44 oz. gold, 12.97
oz. silver, value $15.28 per
ton.
-Assured and probable unbrok
en ore down to 5th level, 219,
287 tons, averaging 0.42 oz.
gold and 7.47 oz. silver, gross
value $12.13 per ton.
Estimated average content
per ton of all known ore re
serves, (634,537 tons) is plac
ed at 0.43 oz. gold, 9.49 oz.
silver, making a gross average
value of $13.35 per ton. (Ore
reserves Dec. 31, 1926, were
798,269 tons, averaging 0.43
oz. gold, 9.60 oz. silver.)
The total tonnage mined, mill
ed and shipped from the com
mencement of operations to
Dec. 31, 1927, a period of 8
years, and one month, amount
ed to 1,069, 649 tons. Total
metal production during the
period was 798,826 oz. gold,
21,498,586>. oz. silver. Total
profits after deducting taxes
but before deduction of depre
ciation and ore depletion
charges were $14,884,179.22
Distributions to share holders
during the same period, includ
BUTTE GROUP BONDED.
Another important mining
deal involving properties in
the Hyder district developed
Thursday with the bonding of
the Butte group, to Seattle in
terests represented by Rodney
G. Sargent and Henry G. Boul
ton.
Space limitations preclude
publications of the details un
til next week.
-O
Mr. and Mrs. John A. Martin
arrived Sunday from Seattle.
Mr. Martin, who is an experi
enced bank man and formerly
connected with a prominent Se
attle bank, has taken over the
position of assistant cashier at
the Bank of Hyder.
ing the last quarterly dividend
for 1927, aggregated $11,752,
000.
With reference to the acqui
sition and development of the
Prosperity and Silverado group
the report states that the tip
per tunnel on the Prosperity,
which cut the Prosperity vein
at 100 feet depth, disclosed a
vein some five feet in width of
oxidized material, mostly ot
non-commercial grade, altho
carrying for a distance of 165
feet a high grade streak of ir
regular width, but averaging
about 18 inches, and a per ton
value of around 150 oz. silver
and 7% lead. The 76% inter
est in the group was acquired
at a cost of $173,628, exclusive
of development and explorat
ion expenses, which are to be
repaid to Premier before di
vision of accrued mining prof
its.
The lower tunnel is expected
to extend 1500 feet and cut
Prosperity vein at a depth of
400 feet below the outcrops
about May 1st., in addition to
tapping other veins enroute.
Relative to the recent acqui
sition of a majority interest in
the Silverado group, the report
announces that the Silverado
Consolidated, Ltd., took title
to the property by the issuance
of 450,000 shares, and in con
sideration of a loan of $50,000
from Premier, granted the lat
ter company an option to pur
chase the remaining 550,000
shares for exploration, devel
opment and equipment ex
penditures made by Premier.
Under this arrangement Pre
mier will acquire the remain
ing shares at the rate of 50
cents for the first 100,000 and
$1 per share for the remain
ing 450,000. Dale L. Pitt is
managing director of the Sil
verado Consolidated.
The report makes no refer
ence to the Porter-Idaho deal
and closes with the following
significant statement of the
Premier company’s future out
look:
“Development during 1928
upon the Prosperity and Sil
verado groups should indicate
whether or not these groups
can be converted into profit
able producers and thus aid in
prolonging the profitable life
of your Company after the ore
reserves of the Premier mine
are exhausted.
“So that your Company will
have ample cash reserves with
which to equip with aerial
tramway, paining, milling, and
power plant, etc. these newly
acquired properties, should
their development so justify,
it will doubtless be necessary
to reduce somewhat the quart
erly dividend and thus accum
ulate additional cash.”
DEAL CLOSED FOR
STAMPEDE GROUP
The Stampede Group, located
in the Klehina River district
and owned jointly by Wm.
Bunting, local mining man, and
John S. Stenbraten, has been
bonded to an aggregation of
eastern capital represented by
A. H. Jarman, of the Marlund
Mines, Ltd., according to an
announcement by Mr. Bunting
Tuesday. The papers are now
enroute to New York for final
ratification by the purchasing
interests.
The deal has been under way
for some time but could not be
closed earlier owing to inabil
ity to get into touch with Mr.
Stenbraten, who recently yield
[ ed to the penchant which long
since earned him the express
ive sobriquet of “Stampede
John” and hiked away to a
new strike in the interior.
Mr. Bunting informed the
Herald that the deal involves
cash payments aggregating
$100,00, and includes retent
ion by the owners of a substan
tian interest in the property.
A development program is be
ing outlined by the purchasing
interests and active develop
ment will be started at an ear
ly date.
The Stampede is a free mill
ing gold property of except
ional promise and is disting
uished by a remarkable extent
of surface mineralization. The
property is traversed by a mas
sive zone of shattered quartz
carrying excellent operating
values. Work done by the own
ers last summer disclosed the
presence in this zone of 15
new veins, one of which was
uncovered for a distance 6,540
feet and found to average 3
feet in width, with a maxi
mum width of 6 feet. Assays
of the ore gave average re
turns of $8 in gold in addition
to a small amount of silver.
Dr Howard T. James, resident
engineer of B. C. district No.
characterized the big vein as a
true fissure after an examin
ation last year. A wagon road
from Haines extends to within
short distance of the property
and makes it easily accessible.
Writing to local friends from
Seattle, T. W. McDonald,
former U. S. Commissioner,
states that he contemplates re
turning to Hyder next month.
Mr. McDonald has just com
pleted an extensive prospect
ing trip in Arizona and the
Mojave desert country. In com
pany with Dave McVey, well
known old-timer, he traveled
close to 9000 miles in the bor
der districts, visiting many
places in old Mexico enroute.
Gene Bartholf, accompanied
them on their prospecting tour
as far as Bouse, Arizona but
left for Alaska some weeks
ago.
-0
Don Mills, late Hyder resi
dent, has been exonerated of
the charge of passing worth
less checks and obtaining
money under false pretenses,
preferred by a Sitka resident,
as a result of the failure of the
federal grand jury at Juneau
to return a true bill, according
to the Juneau Empire of April
3.
-o
George Bunn, owner of the
promising Engineer group on
the south fork of Marmot Riv
er, and well known old timer;
returned Sunday from a visit
in the southland.