Illinois Staats-Zeitung -- January 02, 1879Invitation to Participate in the Chicago Mining and Milling Company
In inviting the public--and particularly my compatriots, the Germans--to become stockholders in the Chicago Mining and Milling Company which I have organized, I consider it appropriate to publish the following information:
The Chicago Mining and Milling Company is not a mining venture in the usually accepted sense of the term, since this corporation has as solid a foundation as any business enterprise (sic).
The main object of the Company is to build reduction works [ore mills] in one of the richest mining districts of Arizona. This part of the country has always lacked sufficient equipment, and there is sufficient ore available from mines already established nearby to keep the projected ore-crusher busy night and 2day. If, therefore, human calculations are at all reliable, capital invested in this enterprise will begin to earn returns immediately.
In my travels through Arizona, I found that the reports of earlier prospectors about this rich silver country were not only substantiated, but also that in many cases they underestimated its wealth. And I also noticed that the lack of capital made the exploitation of these natural treasures exceedingly difficult.
The local prospectors are poor, plain people, suspicious of speculators, averse to letting their discoveries fall into the hands of others without adequate renumeration--which is natural enough, since the finding of these deposits entailed considerable hardship and privation. I found this [attitude] particularly in the forested and well-watered Globe district, an area which my investigation and travels have shown to be the richest part of Southern Arizona. I saw an opportunity here for a profitable enterprise requiring comparatively little money, and I decided to induce my friends in the East [Translator's note: He means Chicago.] to become associated with me in the erection of ore-reduction works.3
The discoverers and owners of the Julius Mine (one of the richest mines in the district. It has already produced fifteen thousand dollars worth of ore at an assayed value of $100 to $20,000 per ton, and there are indications that the veins are extensive and deep) heard of my intentions to build ore-processing works. These men were so convinced of the importance and the potential profitableness of the venture, that they offered to subscribe to one half of the shares if I organized a company to erect and operate an ore mill. In payment of these shares, the mine owners offered to transfer to the company title to their property The mining property includes twenty mines, among them the Julius, the Chloride, the Red Rover, and others whose values I have investigated. The property also includes twenty thousand dollars' worth of ore, already mined.
This offer seemed so encouraging that I resolved to modify my original plan, in order to base the enterprise on this proposition.
The agreement involving the mines was barely consummated when Carl Soyer, who had resided in this district for two years and had studied practical metallurgy in Germany, gave me $2,000 as an investment.4
I then organized the Chicago Mining and Milling Company under the laws of the State of Illinois. The Company is capitalized at $1,000,000. The par value of a share of stock is $100, and $10,000 shares will be issued. Of this number, 4,000 are to be sold at $25 each for the purpose of raising money for the erection of a reduction works and to provide the necessary [starting] capital.
After the purchase price for these shares has been paid they involve no further liability. Assessments which in other mining ventures prove such a disaster for small investors-- and provide an excellent method for unscrupulous directors to acquire entire companies--are absolutely excluded from the plan of organization of this company.
The owners of the 4,000 shares now offered for sale will actually control the company and elect the presiding officers. The provisional directorate will resign as soon as a sufficient number of shares have been subscribed for.
For myself, I do not ask a penny from the sale of these 4,000 shares. When the money has been raised for the construction of the mill, I intend to function 5only as one of the directors and as manager of operations. I intend to return to Arizona in the interests of the corporation and to superintend the building of the reduction works and its operation.
There is little risk for bondholders of the Chicago Milling Company. The investors do not assume any other liability; through the election of their own executives, they retain control over their money as well as over the income derived therefrom and cannot be cheated out of their shares by "assessments" and other tricks.
Their money, also, will not be dissipated in the ground and made subject to luck, as is the case in prospecting, because the funds are to be used for constructing a mill in a district where valuable ore has been and is being brought to the surface daily, ready to be converted into cash.
I am so fully convinced that the enterprise will be successful that I intend to dedicate all of my time to it. Within a short period, I hope to make the 6Chicago Mining and Milling Company one of the most reliable and profitable stock ventures in the land.
Further information about the Company's mines is contained in our prospectus, but I shall be glad to give additional explanations to all who are interested in these matters. I extend a cordial invitation to the public to inspect the ore samples that we now have on display. This rare, high-grade ore has astounded all experienced observers.
You may see me at any time Room 33, Staatszeitungs Building. There is elevator service in the building.
Messrs. Wasmannsdorf and Heinemann, 165 East Randolph Street, are the financial agents of the Company, and they will accept subscriptions to shares at their offices. Any information desired, and the prospectus as well, may be secured at this address.
A. C. Hesing
II A 2, IV
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