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 < 
 
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