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Tonopah Reduction Company.Report of A. E. Barnes, General Manager, August 31, 1904.The following is a report of your General Manager of work done from December 8, 1903, to August 31, 1904:INVESTIGATION TRIP.The journey to Tonopah was made with Mr. Clarke, the then President of the Company, Mr, Clarke paying his own expenses except a small sum used more directly in the interest of the company.We visited sundry manufacturers of machinery and viewed the same in Chicago, Denver, Salt Lake and Reno. Also visited and investigated machinery at wok and processes in the reduction plants at Colorado Springs (two a chlorination and Bromination), at Breckenridge, Col.,two plants at Park City, and the large plant at Murcur, Utah, four mills in the vicinity of Silver City and Virginia City, Nev. a lixiviation plant at Wedkind, Nev. Each visit was of value to the company I am thoroughly sure.This brings us to Tonopah, where we expected to install operations. The advisability of so doing was checked on viewing and considering the plans of the Tonopah Milling Company for milling the ores, the plant being almost ready to begin work. This plant is of modern design, but using what is known as the Boss continuous process (not a very new process). This plant cost $75,000.The capital for this was furnished almost entirely by local people, was the pride of the city, and while not all the ore. was pledged to it, would be inclined to it if at all successful. Further, the big companies had decided on a railroad and smelting for their ores, and would for some time to come be committed to such a method. "I may say that the chemist for Mispah Company favored a method along our lines, but John Hays Hammond and the Company overruled his judgment.We then canvassed outside districts, each of which was in turn passed as not yet ripe for a mill, Paymaster and Silver Peak coming in for serious consideration. In these deliberations the presence of two directors was fortunate.Goldfield was then becoming talked of, and I asked Mr. Clarke to go there while I went elsewhere (and this, by the way, was first expense item allowed Mr. C.). The camp made a favorable impression upon him, but no recommendations other than that I ought to see it before leaving the district. This we did together a week or so later on a return trip from Silver Peak. Up to this time we had decided that Tonopah district was not our field, at least not until we had visited other points in California and Arizona.A more thorough review of the whole Goldfield district led us both to believe in its future and its early need for a mill. A small mill, wholly within our means, the progressive spirits claimed, was needed even then. The ore was claimed as free milling, but more knowing ones said much of it was likely to prove otherwise, and such has proved to be a fact, and to-day 30 to 50 per cent. only may be in this free milling class. As ores are prepared for our methods: by same crushing machinery we reasoned it a factor of safety to our stockholders if we located in a district partly free milling. A most careful consideration of all the pros and cons of the place decided in favor of Goldfield as our location.WATER. This decided, the question of water was next in order. The only visible water supply was that in the shallow wells near the few tents of the camp, and at what is known as Rabbit Springs. There were two claimants for these springs (a third now in the field), and the shotgun policy in operation by the claimant in possession. Here Mr. Williams, surveyor, broken and lively spirit in the camp, came in with the claim that Rocky Canyon, our present location, would furnish more water than Rabbit Springs. He owned part of this ground, an interest in part, the upper canyon belonging to others. The control of all the possible water ground contiguous was the correct thing to be obtained. The holders of these claims, mindful of the future possible value and with the proverbial tendency to stick it into the Eastern seeker of investment and being also owners in a town site (Milltown) a mile away, needing water, and these claims their only recourse, put the exhorbitant price of $10,000 upon them; add to this the price of the lower