I have been at work for the best part of two months upon a General Report upon the Estate and especially of the business of the last six months. The company’s purchase was made on the 25th of June; neither then nor on the 1st of July was an account of stock taken (though sometime in July there was a form of taking an inventory of the personal property gone through with, its incompleteness making it an embarrassment rather than an aid to obtaining a real knowledge of what it was intended to show) nor were the books balanced. An account of stock had never been taken of the merchandize, and the statements of profits were based on estimates. The preparation of the Report required a complete investigation of the books, and a thorough account taking and valuation of all the property on the Estate. I got our bankers in San Francisco to send us an accountant to help about the first. There were some 700 open accounts with individuals, besides those with mines, mills &c.

I found evidence that a great deal of guess-work entered into the statements formerly made to the company, said to be derived from the books, and had to go [to] the bottom of this as far as possible and correct errors by more careful estimates and reference, where it could be had, to original memorandums & pay rolls of the superintendents & clerks. My report covered all this, and included a review of the management of the estate from its first occupation to the present time, in order to fully explain its present condition. The account of stock and valuation occupied several quires of closely written fools cap, and as it differed most materially from all previous accounts (for which members of the Board of Trustees are responsible) I had to justify it in my report. I reduced the valuation of mining improvements, mills &c, for instance, in many cases to one quarter of Park’s valuation, and gave my reasons for it.

Finding matters on the Estate wholly different from what they had been assumed to be in my instructions, I had been obliged to act independently of my instructions (I have received none since I left New York, to this day) and having set on foot works which will involve an expenditure of several hundred thousand dollars, I had to fully explain the grounds of my action and justify myself in it. I had also to make an estimate of expenditures and of production for the year. I wound up with a statement of my judgment upon the value of the estate—the chances of profit which it offered, and advice as to the policy by which the company must be governed. As all the old staff of Central Superintendence had left, the detail of work had nearly all to come upon the two men I brought out with me, and this in addition to their current duties.

[187]

You will see that it was no light task. I have put off everything else possible while it was in progress, especially all writing & desk duty. I have steadily worked through the night, generally breakfasting after noon, and after attending to the necessary office business of the day, have until the last few days, never failed to have a ride—generally getting to one of the nearest mines or mills or some of our explorations (test-pits working on outcrops of gold quartz) coming back to dinner at seven or eight in the evening, & getting regularly to work about eleven. Under this regimen my health has improved, since I last wrote you, though I have had more or less of the trouble in my head which I spoke of—all the time.

Since I last wrote, I have received from you—letters of Dec 18 & 25th & Jan 3d, no papers—the mails have been very irregular—the great bulk being left behind though the overland has come through I believe, with something, regularly every day. The detention is said to be on your side of the plains—not ours.

You ask about the Wells Fargo stamp. Wells, Fargo & Co is an institution of California. Their Express Office is the central object in every mining camp, preceding everything but the “dead-fall,” (an extemporaneous, trail side dram-shop). The back-bone of the business is the transportation of gold dust & bullion. The agents value the dust at sight (so much an ounce) and buy it of the miners (placer-miners) giving them coin for it, or they take it for transportation to bankers in San. F. or to the Mint. They take bullion also from the quartz miners—the regular charge is 3/4 of one per cent of value of bullion or dust. Their agents of course have safes and arms; on all regular lines of stage coaches they have chilled iron boxes framed into the coach bodies for the conveyance of bullion. Sometimes they send guards and sometimes convoys in the Mexican way. This is the foundation of the business but there naturally connects with it a great deal of important minor business. Having agents everywhere, they make collections, purchases &c, their charges being high enough to confine this sort of business chiefly to matters of confidence & discretion. They purchase stamped government envelopes such as you see, add their own stamp to them, & sell them at seven cents (three cent govt stampd). Letters thus stamped are mailed at their office instead of at the Post Office and delivered by them at their destination within the state, or if in the east, are mailed at New York. They are so much surer than the mail (to go with all possible dispatch) that most of the mail business of California is in their hands.

We ship our bullion by them & receive our coin (for necessary cash disbursements) in packages of $5000, from our bankers in San F.—though it has sometimes been the practice to send the bullion by our own teams to Stockton with three or four armed men, who also guard the coin on their return. It may be cheaper to do so and take the risk upon ourselves, when we have above $50000 to send—hardly otherwise.

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“Cleaning up,” Mt. Ophir

As a rule, our mills “clean up”, twice a month; the superintendents separate gold & quicksilver (by heat—the quicksilver going off in fumes, which are condensed in a retort—the gold is then in a form like a sponge-cake—somewhat dirty). We send a buggy with two men with revolvers and a double barreled gun to bring the sponge to the Central Office. There it is weighed, rudely refined and melted, cast into bars like thin bricks, stamped, kept one night in our safe and by the following day’s mail stage, in Wells Fargo’s box, it goes to our bankers. They hand it over to assayers, who return it in a day or two to them in new bars, with a certificate of value, upon which it is sold, or passed to the Mint and a Mint certificate taken by the bankers, who credit us with the amount, the Mint certificate being equivalent to its purchase by government; the assayers being responsible for its assaying at the Mint equal to their report & making good any difference.

But to return to the mails. You are surprised at the length of the [189]passage time of letters. The steamer mail has been carried, I believe, from N. York to San F. in 21 days, but this is extraordinary. Before the opposition on the Panama route, I think 26 to 27 days was the usual time. The overland mail, is under favorable circumstances but 21 days from New York to S.F. and is on an average more regular, safer and quicker than the steamer. Light mail matter unless specially directed by steamer mail, goes regularly over-land. You mail your letter as to any other part of the United States. I believe that only one overland mail has been lost from the start though several have been missing for a time.

We have heard nothing from the Telegraph Company. We send to Stockton office. Mail leaves here every other day. Mail from S.F.—every other day, Sundays excepted.

I was anxious to hear when Mary was to leave as I had to make engagments with reference to visiting San Francisco, so as to meet her & it embarrassed me a good deal to get no reply to my telegram. It obliged me to postpone various business from day to day for several weeks, lest I should make engagments that I could not keep without failing to meet her. Since I began this letter I have recvd a telegram from Godkin, saying she would sail on the 13th Feby.

I think that I shall take family quarters in the rooms over the Bear Valley store, temporarily. If I leave them during the summer it will be only for some shantee or camp arrangment. There is no other house will accommodate us, except the Inn, in which the rooms are mere canvas closets, and very noisy sometimes with gamblers all night.

There have been a great many robberies here lately, and half a dozen men have been hung and two or three shot. They were all Mexicans, Indians, Chinamen or blackleg Secessionists. A decision of Court declaring the soldiers’ vote or a part of it for this & adjoining counties unconstitutional, has just been announced, which will put Secesh in all our local offices. The estate is Union, but the agricultural population, being mainly from Arkansas & Texas, is thoroughly rebel.

I am sorry that Williams paid you so short a visit.

The weather has continued exceedingly fine all winter to the great distress of the miners & farmers—the latter not yet being able to plow. It is like spring weather without being damp or raw. In the middle of the day the air feels like that of summer day near sunset.

I have been much saddened by hearing from Miss Hamilton of the death of Mrs Schuyler. She sent me very kind words before her death.

I am glad to hear of Mr Niles’ promotion and hope he may find a comfortable parsonage in Augusta.

[190]

Private

I can safely use any moderate amount you may have to invest in discounting the company’s 30 day obligations at 1½ pr ct. As far as I can see 1½ pr ct a month is the highest rate for really sound & safe business. In all the stocks above that there is some element of danger. The Navigation Co. in which I have $1000, is now paying 4 pr ct a month dividends (on the stock at present market price) & has a strong reserve & is under the best management. The danger is in opposition lines. The company subsidizes nearly all the steamboat owners in California & buys off opposition. I regard its reserve fund & the value of its property as pretty good security against the loss of anything but dividends, which opposition may at any time interrupt or diminish. It is not so with the other high dividend stocks generally. Mines are liable not merely to suspend dividends for a time but to become worthless. I shall guard against this in the Mariposa by keeping half a dozen mines open. (Have already got so far that the company couldn’t prevent it, if it would.) Besides we have an unlimited reserve of undeveloped veins. Most of the mining companies simply own the right of mining on one vein for a limited distance. My three stocks since I bought have scarcely varied in market, but are on an average a shade higher.