Correspondence, Levi Syphus to Sadie B. Clayton

St. George, Bbah February 2, 1940 Mrs. W., M. Clayton 1315 North Main Street Santa Ana,Caliiornia Dear Madam; I have not as yet received another letter from you since the one you wrote reporting your visit to Los Angeles. All the owners in the magnesite claims excepting yourself have agreed not to grant a lease upon all of the claims. We have segregated them into what might be termed 4 areas and agreed not to lease .more than one of those areas to any one concern, and further agreed, that in no event will leases be granted upon all- of the cli-ims,, out that one area will be reserved from lease in order thati any .lease shall be granted, there will he an unoccupied zone upon ^ which a,purchaser could go to work anu supply his requirements fromi : pending_ ..the expiration of the existing leases, if any. They have further-agreed to limit leases, if any, to a term of 10 years, which possibly might be extended a little, if something be gained by so doing. worthwile could | I have this day written a letter to Mr. H. H. Burhans, agent for the. Engineering corporation of New York, setting out some of the terras it would be necessary for them to meet in the event theydfecided to lease one of said areas. They will be required to pay £,250 down, for the privileges of the lease, 2, by the first o June, perform the assessment work upon the claims leased, they will have to pay £200 a month minimum royalty for each month of the first year beginning 6 months after the lease is granted, £300 a month for the second year, and &500 per month for each year thereafter. It seems those require­ments are so much more than they will accept, Judging from the represent­ations they have heretofore made, that I hav-e not named the royalty rate per ton that would be charged for the ore. Unless they will gree gtio vetnh e thfeomr.egding, or substantially so, no per ton royalty rate will be Such a large percentage of the ©wners fafeored the granting of one lease subject to the foregoing terms, and subject also to a per ton royalty rate of 50$, in the event they will agree to the foregoing, and will pay the 50$, rather than not to have anything doing on the property. Beause of the large number agreeing to the foregoing, I have felt that I should not stand out against it. Please write me immediately and let me know whether or not Willard met Mr. Burhans and what he thinks of his representation, also give me your answer as to whether or not you will agree to the foregoing, providiig it can be put over. In the event something betterappears jf|lj by the time they agree to the terms I have set out, providing they do agree, we can then Jump the royalty rate above the 50$ since they have not been inform $1 of it.- Please write me immediately at Box 298, St. George, Utah. Doubtless you are more or less confused by the more or less conflicting representations I have written you during the past three weeks. That has been due partly to misrepresentations made to me and partly to my own mistakes* wrong estimates* etc.* which can very easily happy in my case, for I am suffering a good deal with my eyes and otherwise. Several of us met here in St, George a day or two 'ago* among whom was John F. Perkins. The explanations he was able to make in a very large measure; exonerate him from the things I have intimated he was guilty of in my letters, to you* and there had been no combination of majority owners to put things over/£&/t/ such as I intimated might be the case. I make this statement in fairness to ail concerned. I now remind you of the many years we stood out (for one dollar per ton under any lease that myght be granted on the skit deposit and got nowhere* but when we got down to a rate under which some business could be done, there.began to be some income from the property. Don’t you think we might better profit by that experienceVon"case of the magnesite, and try and start something thatwill bring in some money at least. Please write me your views immediately with respect to the foregoing, and also let me know whether or not your or* Willard may know of any one who might make me the loan I mentioned in one of my recent Tetters. I hardly look for an answer from Mr. Burhans, but if they- do accept the propositions I have set out fortohem, there is some hope they may accept the 500 rate, although they will fight and do a good deal of bluffing to.get it cut lower. Very truly yours, Levi W. byphus P.O. Box g98 St. George, Utah Mrs. W. M. 1315 North Santa Ana, Clayton Main Street .California s