[How the Grass Valley Mining Company has Spent its Money, Virginia Daily Union article, reprinted in the Alta California, July 27, 1864]

 

How the Grass Valley Mining Company has Spent its Money.

            The Grass Valley Mining Company has a claim of 4,200 feet adjacent to the Potosi Mine, at Virginia City. It has been engaged in several lawsuits, has collected large sums by assessments, but has done little work in mining. Stockholders in San Francisco may have some curiosity to know what has become of the money, and they may learn something on that point from the following article which we copy from the Virginia Union of the 23d inst.:

            C. N. Felton and S. M. Atchison are stockholders in the Grass Valley Mining Company. Being of an incredulous nature, and not placing entire faith in the integrity of human nature generally, and trustees in particular, they refused to pay their assessments, and in order to prevent being "sold out," applied for an injunction to restrain the company from that act. An order was granted by the Court for the examination of the Company's books. Such an examination has been made by an expert accountant. The result, as reported to B. C. Whitman, referee in the case, has been placed in our possession, and, for the purpose of enlightening those stockholders who may be laboring under the delusion that their assessment money has been wasted, we will give a brief synopsis of the receipts and expenditures of the Company, merely remarking that figures of arithmetic, unlike figures of rhetoric, won't lie.

            The total amount of assessments levied by the Company reaches the sum of $109,200. Of this sum, $39,062 03 is still delinquent, leaving $70,137 97 of cash received. Of this amount $3,837 47 still remains in the cash till of the Company, and $66,300 50 has been expended in the following judicious and economical manner:

            For labor.                                                                                        $5,280 74

            Crushing ore.                                                                                       789 34

            Stewart & Baldwin, attorney's fees.                                                   5,000 00

            Stewart & Baldwin, loaned.                                                              2,130 00

            A. W. Baldwin, loaned.                                                                     2,525 00

            Judge Hall, attorney's fees.                                                                2,500 00

            Salary of G. D. Roberts.                                                                    6,000 00

            Paid to the order of G. D. Roberts, in small sums.                           2,300 55

            D. D. Roberts, loaned.                                                                        397 00

            M. C. Hillyer, salary.                                                                         3,000 00

            M. C. Hillyer, loaned.                                                                       1,414 00

            M. L. Sloss, salary.                                                                             2,000 00

Loaned to the following gentlemen, who were witnesses for the Grass Valley Company:

            G. W. Humphrey                                                                               3,589 56

            Wm. Chollar                                                                                      2,885 00

            L. Wardle                                                                                           3,754 88

            J. Anderson                                                                                        1,092 10

            M. R. Williams                                                                                   1,000 00

            W. E. Goodrich                                                                                     570 00

            Louis La Page                                                                                         50 00

            W. Henderson                                                                                      100 00

Loaned to the following gentlemen, not witnesses:

            A. R. Dibble                                                                                         920 00

            A. A. Meyer                                                                                          214 73

            Jesse Barney.                                                                                           30 00

            A. R. Dibble                                                                                         200 00

            And to various other parties, of which no particulars are given        6,990 00

            Paid to John Doe (!)                                                                               500 00

            Paid attorney's fees, (no name)                                                              300 00

            Paid out, nobody knows where or how, no account being

                        made of the same                                                                10,587 58

Total sum expended                                                                                   $66,300 50

            It will be observed that of the sum of $66,300 50 expended, only $5,280 74 has been devoted to developing the mine, and $769 34 for crushing rock, no results being given from the crushing.

            It is stated by evil disposed persons that the amount of labor expended in developing the mine, for which $5,280 74 was paid, could have all been done for less than $1,000.

            It will be seen that $13,041 54 has been loaned to gentlemen who were witnesses, and $15,820 75 loaned to other parties, mostly the officers and trustees of' the company.  $11,000 has been paid for salaries, $8,000 for attorney fees, and about $13,000 in a manner for which no explanation is offered.

            Of the $8,000 paid for attorney fees, Judge Hall, who never appeared in Court, received $2,500, and some unknown attorney $500; and of the $11,000 paid for salaries, $5,000 has been paid to Hillyer and Sloss, who were never officers of the company.

            Another interesting item, in this connection, is the list of the largest delinquent stockholders, which is as follows:

            Stewart & Baldwin                                                                               $3,190

            G. D. Roberts                                                                                         6,435

            M. C. Hillyer                                                                                           5,850

            M. L. Sloss                                                                                               7,020

            It will at once strike the most casual observer that Stewart & Baldwin, G. D. Roberts, M. C. Hillyer and M. L. Sloss have been most valuable members of the Grass Valley Company. This quintette of worthies are delinquent for $22,495, and they have received from, the Company, in salaries and fees, $18,300 55, and borrowed from the Company $6,460. That is, they have taken $24,766 55 out of the treasury of the Company, and have paid in nothing.

             How much of the $27,981 27, which has been loaned by the Trustees to themselves, their officers, attorneys, witnesses and friends, will ever be paid back, is a matter which the stockholders can judge for themselves. Any little anxiety upon this point will doubtless be at once allayed by a perusal of the names of the borrowers, for no unprejudiced person will for a moment doubt the solvency of Humphries, Wardle, Williams and others. We commend the above statement to the careful perusal of a mining public. It is no marvel that our prosperity has declined under the condition of things exposed by an examination of the Grass Valley books. If there be many more companies among us whose expenses have been at the rate of $60,000 wasted for $6,000 expended in supposed labor upon the mine, the sooner such mines are closed the better.