United States. Congress. Senate. Committee on Fore.

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18 New Street^ New York, May 30, 1867.
Mr. Chas. H. Bxall, Tagoltita, Meaeieo :

Dear Sir: We wrote you on 20th inst., informing you that we had nothing from
you or Col. De Lagnel, buc that a draft drawn by Col. De L. from Mazatlan, 10th
April last, had been presented, and there being no funds on hand, and no means here
of meeting it that it was protested and returned not paid; it is hoped by the time it
gets back you will be prepared to meet it. Since my last letter Col. de Lagnel has
arrived, and made known to ns something of the state of things with yon. I must
confess that we are amazed at the results; it seems to be incredible that every one
should I ave been so deceived in regard to the value of the ore, and I can but still
hope that the true process of extracting the silver has not been pursued, and that
before this time better results have been attained. Mr. de Lagnel expected that Mr.
Snndel, of St. Dimas, would come to your aid soon after ho left, and as this gentle-
man was said to bo a practical chemist and metallurgist, he hoped some means would
be discovered to get at the silver; if, however, the ores are indeed worthless, I don't
see that any process of working will be of avail, and have the worst fears that our
enterprise will, after all, be frnitless of good. In regard to the working of the ore.
I would advise that yon don't waste it by running it through the mill when you find
that the yield is not satisfactory. I would suggest that yon run, say 2 to 3 tons of
metal through tbe mill aud see what the results are by the pan process, and then
take a like amount of same sort of metal and crush it and grind as fine as possible
in the pans, and then take it to the "patio'' and beneficiato it and carefully compare
the resnlts of the trials; this is what I urged long ago, and think it well to do at
once. I would advise that trery frequent assays be made of the ores as raised out of
the mines, and take out nothing that will not certainly be rich enough to pay well
for working. All expenses must be cut down to the lowest point, and you and Mr.
Cullins must try and bring this enterprise into paying condition if the thing is pes-
Bible— at any rate, no further aid can be rendered from here, and what you need must
oome from the resources you now have. Neither must you run into debt; cut down
expenses to amount you can realize from the mines. I can not yet say what can be
done in tbe fotnre; no meeting of the stockholders has been held, and nothing done
to pay off the debts here, now pressing on the company. For the present, all I can
■ay is that the whole matter is with you ; take care of the interests and property of

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Uie oompaoy : don't get it involved in debt, and advise ns fallv of what yoo an do-
ing. Everything here ezoesBively depressed and doll. With best regards to Mr.
Callins and yourself,

I am, very tmly, yours,

D. J. Gabth.

Ton must be very earefol in regard to the tailings or ''palvios/' and try and save
them, and not let anything be wasted, for ** ftitnre use."

[Endorsed— << David J. Garth. To C. H. Exall. May JO, '67."]

Oftiok of Garth, Fiamoi A Hardy, Bankrrs,

18 New Street, New York, Jmme 10, 1867.
Mr. Chas. H. Exaix, Ta^olHia, Meaoioo :

Dbar Sir: I had this pleasure on the 90th nit., sending the letter by a gentleman
going direct to Maeatlan. We have not heard from yon since Con. de I^gnel left
Menco, but hope that yon are well and getting alone as well as conid be expected.
The account that Col. de L. gave us of the qniuity of the ores on hand was most on-
expected and a fearful blow to our hopes. We trust, however, that a fuller examina-
tion will show better results. We have in previous letters to you and to de Lagnel
so fully informed you of the condition of afl^irs here that it is hardly necessary to say
anything further on that subject. There is no money in the treasury, and we have
no means of raising any, and a few of ns have already advanced all that we can do,
and you have been advised that the draft last drawn by de L., on 10th April,
90* was returned protested, and I hope vou will be able to take it up when it gets
back, bromptly. Everything now depends upon you and to your Judgment,
energy, prudence, and good management of the resources in your hands, and we hope
you will be able to command success.

Very respectfully and truly, yours,

D. J. Garth, J\r.

(Endoned:) '*D. J. Garth to C. H. E.,*" June 10, W.

Qmoa OF Garth, Fishrr A, Hardt, Bakkrrs,

18 New Street, New Tark, Jul^ 10, 1867,

(Care Ecbenique, Pena A Co., Mazatlan.)
Mr. CHA8. H. Exall, TayoUita, Mextoo :

DsAR Sir: I had this pleasure on 30th May and 10th June last, after the return of
Colonel de Lagnel, and we had learned something of the condition of affairs in Mex-
ico. In these, as well as in preceding letters, you were fully advised of the condition
of the company here ; that there htSi been no funds in the treasury for a long time;
that appeals had been made in vain for aid to the Htockholders, and that the parties
here who had made heavy advances to the company were anxious for its return, and
refused to make any further payments ; and that the draft for $5,000 drawn on me as
treasurer by Colonel de Lagoel, on 10th April last, had been protested and returned to
California, and, we suppose, to parties in Mazatlan who advanced the money on it^
and who would have to look to you for payment of same ; and we expressed the hope
that by that time you would have taken out sufficient money to meet it and all otMr
expenses, and hoped soon to have a remittance of bullion from yon to aid in payment
of the large indebtedness here. We have since received your letters of the 6th Maj,
from the mines, and 17th May, from Mazatlan. We are ulso in receipt of the sample
of bullion sent at same time by express, the value of which is not yet asoertained,
having not yet been able to get it from the assay office, but hope to do so to-morrow.
I fear, however, that it is worth but little more than what it cost to get it from the
custom-house in MazatJan and the expenses on it here. I am glad to liear that yon
are taking out rich metal and hone it will turn out valuable. It seems almost incred-
ible that all parties should have oeen so mistaken in the value of the ore now on tbe
'* patio,** and I don't see how it is that Mr. CuUinsand Mr. Sloan, old and expertenoed
miners as they are, as well as the old Mexican miners, should have been so deceived
as to the value of the ore. H it so much resembles rich metal, I don't see how yon
can tell the cood fhim the worthless except by actual fire assays. You should make
these very often, and not go on and get out large quantities of worthless ore at great
expense, thiokiog all the time it was rich metal. Yon will see, from all my letters
that no fdrther aid can be given you from here, and that you must rely upon the ae-

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•ooroes yon now have, and which, we think, onght to he ample to pay off the debta
and to snstain yon in onrrent expenses, which yon shonld cnt down to the lowest pos-
sible point. I can bnt think that in the vast qnantities of ores now on the ^ronnds
of the hacienda, there mnst be a considerable am'nt of rich metal, and which yon
should beoeflciate as soon as possible, taking care not to throw away or waste any tiiat
wonid pay to work. Of oonrse yon keep an aocnrate account of the cost, not only of
raising and transporting of the ore to the mill, bnt of the cost of cmshing it and con-
verting; into coin or bnluon ; and, as it is a matter of simple calcnlation, yon can soon
see if it will pay or if it is a losing business. If it costs more than it comes to, the
sooner we find it out the better, and the sooner we stop the better for all parties con-
cerned. I have heretofore called your attention to this point, and wish yon to ^ve
careftil attention to it, and would request that yon fnmish ns such full and detailed
statements on this point that we can see for ourselves. Qive ns the fiiU particulars
of expenses, am't of ore raised and its value, and the results after benefictatinff, etc.
Be careful about leaks and expenses, cut off all that is possible, and watch very closely
every department with that view.

Don't run into debt or get into difficulty with the authorities, if there are any such
things existing, ,but at same time be firm in maintaining your rights, and don't
submit to imposition except by force, and then make a legal and formal protest as a
citizen of the United States and as an American company duly organised and prose-
cuting a legitimate bnsiness under the protection of the law, and our rights will be
protected by our Government.

We wish yon also to ascertain and fix definitely the extent and boundaries of
91 our properties, mines, hacienda, Ac, Ac, and to send ns a copy of the same.
I suppose Costillo has furnished such an one ; or if not, that he will do so.
Please attend to this, as it roav become important some time or other.

We hope the next advices from yon will be favorable^and to learn that you will
soon send us plenty of money to pav off the debts here. With beet regards to Messrs.
Cnllins, Sloan, as well as to yourself, 1 remain, yr's truly,

D. J. Oabth, IV.

(Endorsed ;) '* David J. Garth, July 10, W.» " To C. H. E.»

OvFicB OF Garth, Fishbb A Hardt, BAinnRS,

18 Ifew Sireei, New York, July 20tt, 1887.
lir. Chas. H. Ex all,

TayolHta, Mexico :
D*R Sir : The steamer is Just starting, and I have only time to say that your letter
of the 11th, by private hand, has been rec'd, advising ns that you had drawn on me
for $3,000, gold. In former letters you will have learned the condition of things here,
and that there is no money to pay same, and that former dr'ft of de Lagnel has been
returned unpaid, and that yon were urged to try and get along with wnac resources
you have. These letters, no doubt, reached you in time to prevent your drawing, as
no draft has been presented, and we hope by this time there is no necessity for doing
ao. I have no time to-day to write more, bnt hope you are getting on well : will write
you fully as requested. I enclose several letters from y'r friend, yrs truly,

D. J. Garth, JV.
(Endorsed :) <« David J. Garth, July 90, 1867."

Nkw York, 10 Augmti, 1867.
Chas. H. Exall,

TayoUita^ Mexico:

Dear Sir : I wrote you briefly on 80th ulto.. and since have your favor of 11th Jnne
from Maeatlan. Your letter by private hand nad reached me some time previously.

We observe with deep regret and disappointment that you are making bnt little
progress in beneficiating the ores now on the "patio,'' and that the yield had not im-
proved. This is a severe blow to the enterprise, as we had expected long before this
time that yon wonld not only be in position to sustain yourself, but to remit ns
enough to pay off the large indebtedness here. We learn with deep regret that yon
are lilcely to become embarrassed in getting supplies for the rainy season. Long be-
fore this reaches you, it will be seen that the draft of de Lagnel, drawn for $5,000, was
protested and returned to Mexico, and that you must try and pay it, and it is well
that you did snooeed in negotiating the draft for ^,000 yon proposed, as we could not
have paid it^ and you must manage to get along with what resources you have, as we
OMmot give you any aid firom here. I would advise you to try and benefloiate what

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ore yoo have on band, if it will pay to do so, and to cat down expeosee to the lowest
point, merely taking oare of the interest and property of the company as beet yoo
can until further instructed, and in mean time give ns complete aoooont of expenaes,
debts, and full balance-sheet of your boolcs to latest period, and also give ns your
opinion in full of the prospects of the mines, values of the ores, cost of raising and
working, with yield of same as requested in former letters. Prom the report* we get

in the papers, we find that Americans and all foreigners will not be protected
98 in their persons and rights in that country, and that we may have to abandon

onr property there, if so, yon mast take all necessary and legal measures, by
protest and otherwise, to secure our claim against the Government. Mr. Rice no
doubt will be of essential service to yon in any measure of this sort, and we would
advise you to consult freely with him. The directors of onr company are trying to
reorganize and to raise money to pay off the debts» and to proseonte the work anew if
possible, but I am constrained to say with but little hope of success. Meantime, you
must get out all the means you can from the ores, cut down all expenses, keep out of
debt, and do what you can to protect and preserve the property ot the company.

Very truly yours,

D. J. Grath, Dr.

Nxw TOBK, Od. 10, 1897.
Mr. Chas. H. F.tatt.^

TapoUitaf Mexico:
Dkak Sir : Since ours of 30th Sept'r, we have yours of 5th August from Maitatlan
and note contents. We are deeply pained to find that you are not well, and that, and
are still without favorable results in the enterprise from which we all bad such high
hopes of success. I am very sorry to say that it is not possible to aid ^ou ftom here,
and ttiat you must rely entirely upon the resources of the mines and mill to keep yon
ffoing and to relieve you of debts heretofore contracted. It is not possible for us to
direct any particular course for you, but only to urge you to try and work aloncr as
well as you can, cutting down expenses and avoid embarrassing yourself with debta.
The Bank of Cal. has again sent Col. D. LagnePs draft here for collection, but it was
not possible to pay same, and it will have to return to Mexico, and we do hope yon
will be able to make some satisfactory arrangement to pay it.
Very truly, yours,

J. D. Garth, Tna^r.
I enoloae letter firom your friend.


TaTOLTITA, FtVy 26, 1868.
Mr. Jambs Grakokr :

Sir : As circumstances are of such a nature as to compel me to leave for San Fran-
cisco, and probably for New York, to inquire into the intention of this company, I
place in your hands the care and charge of the affairs of the La Abra 8. M. Co.,
toffcther with its property.

xou are invested hereby with all power confided to me, of course acting in all yoor
transactions with an eye to the interests of the company.

This will to you, should occasion reqnire it, be ample evidence of the right poas eo a e d
by yon to act in their behalf.
Very respectfully,

Charles H. "Rtau^
Adm'rLaAkra8.M. Co.

Mazatlan, March l&a, 1868L
Dkar Granobr : I wrote you by Rioe^ and said everything I thought neeessary.
Since writing something else has transpired, which I think it best to post yon on.
On yesterday Bartning and I had another conversation in reference to the draft mat^
tor, but I gave him no satisfaction in the affair. He seemed particularly anxious for
me to acknowledge the debt, and that the money had been used for the benefit of the
CO. His object in this is plain. He wants to set some hold on the co. which he has
not now 1 told him I would consult with Ruston in the matter, but of course Mr.
R. will get nothing more from me than Mr. B.

In reference to the La Abra afiaini. I think we will have to look to this oonntvy.
The property cannot be sold without legal authority from the oo. This I think I can
get. Am induced to believe so by the co. letters reo. In fMt. it would be difiOcnlt to
get a pnichaser without authority to selL I am certain of being aUe to get trtt

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power from tnetn, so as to enable qs to Becnre ourselves. I will oommimicate with oo.
from San I^^ncisco, aocl, if best, will go on immediately to N. T. and return as soon
as possible. Pleiase keep everything in the best possible shape and seoorOy and by no
means let my books be seen or known. It is to the interest oi us both to do so ; there-
fore I know yon will act as I advise in the matter. I have been quite sick since being
here, and at one time was afraid wouldn't be able to go up. Am now much better,
and nope to be off to-morrow. The line is so arranged now that yon can get from N.
T. to Mazatlan in 20 days, so I will not be gone very long. Please act prudently in
this matter, and in a few months I think I will be able to put ns both ri^ht. Be mure
and write me by next steamer to San Francisco. I will make arrangements m San Fran-
cisco to receive them or elsewhere. Direct care of Weil & Co. Ton will set their
number from the books. Hoping that you may get along all right, and that I will be
soon again with yon with means to saUsfy onrselveB,
1 remain, your friend,


93 San Fbanoisoo, April 7, 166a

DxAB Orakqsb : After a rather pleasant voyage of 8 days we arrived at this
point. The change in the climate did at first play the devil with me, but that soon
passed off, leaving me in glorious condition, which has continued np to present mo-
ment — so much for health. Since being here I have seen Ralston ot B'k of Cal. : he
and I had long cousnltatlon, which resulted, in his opinion, that the affair bad best
be prosecuted in N. T. I wroto yon from M. in reference to my conversation with the
German house in that place. Elder I have not seen, he and Belsbaw having gone in
the mining region to look after some mines. CuUins I saw once passing throngh the
reading room of the hotel where I stop, Am. Exchange. I did not speak to him; don't
think he saw me. I have determined to go on East ; think it best I should do so, as
the affairs of the co. can and must be decided at once, and I can, from N. T., set to
M. in 20 days ; so you see this is the speediest way to settle the thing. For QodTs sake
keep everything in as good shape as possible, and in event we have to fall back on the
property, it wiU be in such condition that we may be able to realize something from
it. It is hardly necessary to give any further instructions, as I have previously writ-
ten all that I could ou :he subject, and yon, knowing as well as myself^ must be guided
by your Judgment. I will sail on the 4 th or 5 by way of Nicaragna - -steamer on this
side, Moses Taylor; Atlantic side. Guiding Sts^. May probably have rough time.
I have been considerably bored since being here, and wish to get off as soon as possi-
ble. I will either come on back immediately from N. T. or write. Emigration is over-
mnning^ Cal. ; hundreds of people here with nothing to do.

TruBting that yon may get along, at least comfortably, and that onr afEcdiB may
soon be settled to onr satisfaction,
I remain, yours, truly,


Nxw TOBK, ifoy m, 1868.
Dear Graxokb: Tours, from Tayoltita, of March 25 reached me day before yester-
day. Was much pleased to hear from yon and to know that yon were ^tting alonjg
in some shape. I wrote you from San Franoiscojnstprovioua to sailing from this
point, giving you a statement of my doings while there; so no need of repetition.
Ab I stated in my letter to yon, I came by tbe opposition route across the isthmus —
Walker's old ground—and while crossing it I can safely say I had the danuu'eat rough-
est time imaginable. It was awful low water in the small streams or rivers; heavy
rains while on the Journey ; in water, pushing flats, etc., etc. It was an indescriba-
ble mean and rough trip. We were four days gettine across ; got pretty good sea
steamer on this side ; 27 days from San Francisco to N. i. Of course, on the first day
of my arrival here, I saw nothing of the company. The day after I went down and
aaw Garth. Had a long talk concerning afffirs, and, contrary to onr expectations,
gave me no satisfaction ; didn't seem to intend to do anything more. I have seen
him several times, but have got nothing from him of an encouraging nature. He
seems disgusted with the enterprise, and, so far as regards himself, intends to do
nothing more, or have nothing more to do with it. Well, I then went to see one of the
stockholders and directors, who talked a little better. It seems there is a party here
who has been aAer Garth and this stockholder mentioned, to sell the mines to a wealthy
party who are now successfully mining in California. This party have been after
these gentlemen repeatedly, endeavoring to get them to sell the mines, etc., they
bearing all expense and giving the present company so much stock. This party are
bot now in New York. One of them has gone to hunt up De Lagnel to set all possi-
ble information concerning Tayoltita, etc. In addition the party will pay np all
debts against the company. From what this director tells me, they seem in earnest.
They axe not aware of my arrival ; have been written to informing them of the £Aok

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and I will probably be bronght in contact with them- before long. Now, as yon and
I are the principal oreditoTB— I haven't been able to get a cent from them— '* the com-
pany" — and the thing being in my hands, if this party intend baying, we can and
will make a good thing out of it. Those of the company I have seen have turned
the affairs over to me ; so, iu case anything can be done with this party, don't be
afraid of yonr interests— all accounts at the mines are nnder my control— as yours will
be looked to in conjunction with mine. All now depends on what can be done with
this party, and more information concerning it I am unable to ^ve until seeing
them. I have informed the company that they shall do nothing until yon and I were
paid, which seemed satisfactory.

This will be mailed by steamer of 11th inst. If you do not hear from me by steamer
of 2lBt, it will be on account of affairs not having been concluded. Ton may cei^
tainly expect a letter by mail of 1st June ; hope, previous to that time, that 1 may
have made satisfactory arrangements, ^c. Just at thisorisis it will be necessary to keep
all secure at the mines. In my conversation with these gentlemen I will repre-
94 sent tilings in a secure state if possible, pet prorogas on mines where times are
expiring; keep them secure, if possible, in some way; don't be uneasy or spend
a thonght on Cullins or B'k of Cal. ; find out in a quiet way when and where yon may
dispose of the remaining property, but do not sell until yon hear again from me. I
hope to be able to make something for ourselves out of this thing ; at present we are
iu 1 he dark, but I will soon know something definite and will immediately write yon.
In case this party should purchase I will accompany them to the mines. You can ex-
tend Ariza's " Ouarismey '' privilege " if he wants it " another 3, 4, or 6 mos. ; don't
extend Guadalupe's more than a month at a time; do the best you can nnder the cir-
coniKtanoes, using your own judgment, being guided to an extent by what I have

I am also sorry I sold Green Nelly; I think he is a damn rascal, and his company a
fizzle. Get the mule, saddle and bridle, and clothes from Green. If the oo. owe you
anything make them pay. Green's draft was refused in 'Frisco and here. I inclose a
note to Elm from the man the draft was drawn on, also one ttom myself.

I wish I could send you some means to get alonir with, knowing you must be hav-
ing quite a rough time, but am unable. I expected to be paid up here ; its not having
been done plays the devil with my arrangements. Since my arrival here the weather
has been exceedingly unpleasant: raining nearly all the time. N. Y. is exceedingly
dull ; business much depressed; the political state of aflQurs of course has everything
to do with it. Johnson is not yet impeached, and heavy odds are bet in Washington
against the impeachment. Many changes have taken place since I was here last.
Old friends I left, book-keepers, clerks, &c., many are now doing business on their
ow u accounts, but have a hard time of it on account of the state of affain here. To-
morrow I intend to take a run down to old Ya., to see my folks. My mother and a
sister are in exceedingly ill health ; expect to be gone from here only a few days. I
have now written aU that bears on tne important subject with us. Would write
more definite, but, as you see, I am now unable to do so. I will write immediately on
receipt of news. Let me hear from you werp opportunity, and direct via Acapiuoo,
as they get here sooner than by 'Frisco. I v^ill send this that way. My kind regards

Online LibraryUnited States. Congress. Senate. Committee on ForeCompilation of reports of Committee ... 1789-1901, First Congress, first session, to Fifty-sixth Congress, second session .. → online text (page 49 of 156)