Gold Hill Daily News

JULIA-SUTRO,

Fell Inside Particulars of the New Set-
tlement and Contract-Between
the Companies-The Julia Fully
Accords all that the Sutro Tun-
nel Claims, Royalty and All.

Yesterday afternoon, says the San
Francisco Post of the 23d instant, a con-
tract was signed by authorized repre-
sentatives of the Julia mine and the
Sutro Tunnel Company, which is sure
to have a great influence on the future
working and development of the Com-
stock lode. Readers of this column are
familiar with the nature of this contract.
The managers of the Julia mine, at the
great depth of 2,000 feet, have encoun-
tered a prospect in their ledge, which is
favorable to the development of an ore
body. They have been subjected to
great expense and delay in opening the
lead. Sudden flows of water have sev-
eral times driven the miners out of drifts
and crosscuts on the 2000 level, and,
whenever opportunities were given to
resume operations at the different points,
the intense heat has rendered progress
slow-three to four men often working
to the pick. The fact has been patent
to all who are interested in the mine
that new and expensive machinery must
be erected to drain and ventilate the
lower levels, unless relief were furnished
in another manner. The Sutro tunnel
being only 1400 feet north of the main
shaft of the Julia, the managers consid-
ered a plan to connect the two points by
lateral drift. and secure at a cheap
figure the much-needed facilities for
working. The contract signed yester-
day by both parties completely covers
the requirements, and its provisions are
to be acted upon immediately. As most
of the Comstock mines experience the
same difficulties which have been con-
tended with in the Julia, the utility of
the tunnel will ere long be demonstra-
ted and a great and vital question vir-
tually settled. The managers of the
Julia have courteously furnished the
Post with the specifications of the con-
tract.

After the preliminary surveys are
made, the lateral branch of the Sutro
Tunnel will be started. Its size will not
be less than 6x6 feet, but Adolph Sutro
has signified his intention of making it
the full size of the tunnel. The dis-
tance to be run is a little over 1,400 feet.
For the construction of this drift the
Julia Company are to pay $100,000, or.
say 70 per cent., the payments to be
made at the end of each month, accord-
ing to the work accomplished. The
company has already paid $20,000 into
the Treasury of the Sutro Tunnel as the
first installment. The cost of whatever
work the Julia Company may do in fa-
cilitating the connection by running to-
ward the tunnel from their main shaft,
is to be deducted from the total amount
named above. If work is pushed joint-
ly the connection can be made by the
middle of December next. Sutro will
use his best appliances in running the
drift. He will immediately commence,
in many places in the main tunnel, the
work of making a water drain, so that
by the time connection is made with the
Julia he will be prepared to receive the
water of that and the other mines in the
lode. The contract specifies distinctly
that Sutro shall be entitled to, and shall
receive, for every ton of ore and other ma-
terial which shall be extracted from or con-
voyed to the Julia mine through the tun-
nel the full dues and royalty prescribed
in the act of Congress known as the
Sutro Tunnel Grant.

A deed has also been drawn up and
will in due time be signed, giving the
Julia Mining Company the refusal of
purchase of all the mineral lodes and
ledges lying within the limits of the four
thousand feet of lateral withdrawal
made by the United States under the
aforesaid grant. We are not at liberty
to publish the considerations named in
this deed, but suffice it to say that the
succession of the Julia to these rights.
and the fact that the Sutro Tunnel has
cut through what is evidently a parallel
or east ledge, will enable that corpora-
tion to successfully combat any disputes
for the possession of this ground which
may arise in the event of future mineral
developments of great value. The ad-
vantages to be derived by the Julia
Company from the connection with the
tunnel are: (1.) A marked reduction in
all expenses. (2.) Better ventilation
and drainage. (3.) The utilizing of ore
which, if the average value be only $20
per ton, can be extracted, hauled
through the tunnel and milled at its
mouth by mills run by tunnel water. at
such low figure that stockholders will
receive remunerative dividends. On the
other hand, the Sutro Tunnel will dem-
onstrate its utility to the stockholders of
every mine on the Comstock lode,
which, if accomplished, will undoubt-
edly lead to an era of practical and profit-
able deep mining such as has never be-
fore occurred on this coast. It now re-
mains to be seen what the crosscuts and
main drift on the 2000 level of the Julia
will reveal.