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LIMITED LIABILITY

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COMPILED BY

J.M.MARRIS

PRE5T. (5^ MANOR.

BY AU1I10RITY
BOARD OPiilblREGTORS.

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THE RECO
MINING & MILLING COMPANY,

Limited Liability*

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Incorporated September 18, 1896,

under the laws of British Columbia,
the "Companies Act of 1890 and
Amending Acts."

Organized November 10,
. . J896. . .

Capital Stock, $1,000,000,

divided into 1,000,000 shares of par
value of $1.00 each, fully paid and
non-assessable.

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THE RECO
MINING & MILLING COMPANY,

Limited Liability.

J. M. HARRIS. . .
S. M \\HARTON.
FRED T. KELLY,

Officers :

. . President and 'viANActK.

. . Vice-President.

. . Secretary and Treasurer.

Board of Directors:

Hon. Wm. Ward Spinks, Vernon, B. C.
G. C. Wharton, Spokane, Wash.
F. T. Kelly, Sandon, B. C.
S. M. Wharton, Spokane, Wash.
J. M. Harris. Sandon, B. C.

Consulting Engineer, .

A. S. FARWELL.

Bankers :

Traders' National Bank. Spokane, Wash,
Bank of British Columbia. Sandon. B. C.

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TflE PROPEI^TY

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It consists of five claims, namely, the "Rue-
cau " *' Texas," " New Denver," " Clifton " and
"Bphraim," and embraces 150.65 acres, in the
richest mineral belt of the Slocan. It has paid
from its earliest workings to its present stage of
development, under circumstances obstructive
ordinarily to profitable mining operations.

To the continuity of its ore chutes ; the facil-
ity, and therefore the economy, with which the
fissures are followed, and the extraordinary value
of the ore, may be ascribed its uninterrupted suc-
cess, as a highly profitable producer.

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All the claims are Crown Granted, and no
involvement or question of title exists, as to
either of them.

The Crown grant to the " Ephraim " was issued
direct to the Company.

In the case of the " Texas," *' Ruecau," '• Clif-
ton " and •• New Denver," the grants were issued
to the original owners, who transferred the prop-
erty to the Company.

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The property is located on Reco Mountain, in
the heart of the celebrated silver-lead mineral belt
of British Columbia, described as the " Slocan."
It is at present reached from the town of Sandon
by a graded switch-back trail, four miles in
length, though in reality the distance to the mine
is less than 10,000 feet, and will be spanned by
an aerial tramway during the approaching season.

Sandon is the central mining camp and main
distributing point for the Slocan. Two railroads
connect it with the transcontinental highways ;
one, the Nakusp & Slocan, via Arrow Lakes,
with the Canadian Pacific ; the other, the Kaslo
& Slocan, via Kootenay Lake, with the Pacific
trunk lines of the South.

The Crow's Nest cU-off , of the Canadian Pacific,
ac..\..iS the lower border of the Kootenay s, which
is expected to be finished in 1898, will have a
lateral branch 32 miles north from the Kootenay
River to Slocan Lake, thus bringing Sandon into
close connection with the new and much shorter
Canadian Pacific main line, and establishing a
third railroad link between the camp and the
transcontinental lines and smelters of the United
States.

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EQUIPMENT

The mine is equipped with sleeping and din-
ing accommodations for 200 miners. The orig-
inal boarding house erected at a cost of $2,000
was soon found to be inadequate, and another,
which is at present the most complete and com-
modious in the Slocan, was built at an additional
outlay of $5,000.

The six ore houses on the property represent
an investment of $3,000, while a similar amount
of money was expended on the trails.

In the seven tunnels 12 pound rails are used
for track.

The company owns a private telephone line
connecting the mine with its Sandon offices, which
was put in for $350.

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An excellent and inexhaustible supply of pure
spring water for domestic uses is found on the
mountain side above, from which an iron conduit
has been carried through the property, with all
necessary connections.

The very best quality of timber for mining pur-
poses exists in abundance on the several claims
comprising the Reco group.

The company has secured title, by grant from
the Government, to one of the most valuable
water franchises in the district, for mining and
milling purposes.

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What are described as the "leads" in the
Slocan belt are in most instances well defined
fissures that have in their mineralized origin cut
the slate formation at right angles, to depths as
yet unknown and unexplored. It is characteristic
of them that great width is a guarantee that large
chutes of concentrating ore exist; while con-
versely in tight and narrow veins, where the fis-
sure is unmistakable, the cavity usually contains
mineral of an extraordinary high grade.

Two of the three leads uncovered on the prop-
erty up to date may be classified as of the latter
description. Of the third, known as the Reco-
Goodenough lead, or No. 3, Wm. A. Carlyle,
provincial mineralogist, in his official report for
1896 says :

"From the small, or Reco-Goodenough vein,
lying several hundred feet to the east, has come
the richest silver bearing galena yet found in the

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VEINS.— Continued.
Kootenay; the silver evidently occurring as
argentite, although much ruby silver is found in
some of the solid galena. '■■ * ■■■= The ore so lies
that generally the ground can be mined out along
it (the vein), leaving the ore to be afterwards
broken down clean. •'•• ='= * The ore while
mined from a small vein is very profitable."

Mr. Carlyle further anticipates the discovery
in adjoining claims of veins that will ^ e found
to extend into and through the Reco property,
para.ieling the Reco veins now under develop-
ment.

The Reco-Goodenough lead crosses the Reco
and Texas claims.

What is known as the ' ' Big Lead " or " Ruecau
No. 2" parallels No. 3, about 500 feet to the
west, in a northeast and southwest course. It is
traceable through the ''Texas" " Ephraim "
" Ruecau " " Clifton " and adjoining claims. It
is a large fissure, measuring in places 40 feet
between walls, and having an average width in
the under-ground an . surface exposures of 12
feet. It carries extensive bodies of galena, aver-
aging 175 ounces of silver and 75 rsr cent, lead to

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VEINS. Continued,
the ton. The great bulk of the ore in the " Big
Lead" can be prepared for smelting to the best
advantage by concentration, and for that reason
its product has been reserved until the mill to be
erected by the company for that purpose is in
operation. The several thousand tons on the
dump will be concentrated five into one, averaging
when thus reduced 175 ounces silver and 75 per
cent, lead to the ton.

The Texas lead, paralleling the Big Lead 700
feet to the west, and having the same strike and
dip as No. 2 and No. 3 leads, traverses the Clif-
ton, New Denver, Ephraim and Texas claims.
Several tons of ore on the Texas dump will aver-
age 400 ounces silver and 60 per cent. lead. Only
assessment work has been done on this lead,
because of the difficulties and hardships of
development, until such time as the tramway and
concentrator plans of the company have been
carried out.

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SniPMENTAND
PRODUCTION

The subjoined table showing the production of
the mine is compiled from Smelter statements.
The total weight of shipments is given annually
in pounds, though it should be explained that ore
has been taken out only during three winter
months each year,, owing to the lesser cost of
transporting over snow trails. For each year the
average yield of ounces of silver and per cent,
lead per ton is shown, as well as the average
value of silver per ounce and the price for lead.
From the total of values all incidental expense
for shrinkage, transportation charges, treatment
and duty have been deducted.

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RKCO gUAKTKRS, 1893 TO 1896.

SHIPMENT AND PRODUCTION.- Continued.

Shipments

Net
M^eight.

Mill Assay.

Lead,
Silver,

Ozs. cent.

Pri

ce.

Year.

Silver.

Lead.

*Net Values.

J894

146,436

J 75.9

75.7

62.62

3.15

$ 7,100.91

1895

636,313

251.2

43.4

63.40

3.03

45,448.53

1896

856,557

307.7

36.0

67.53

2.96

79,018.85

tI897

1,178,749
2,8J8,055

.308.9

42.7

64.33

2.98

108,402.28

Total,

$239,970.37

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* Receipts from the Smelters after deductions of 5 per cent.
silver, 10 per cent, lead, — for smelting loss — duty on lead, and
freight and cost of treatment.

t Including only the first three months of the year.

Pursuing an analysis of the returns it is found
that the mine has shipped in the four years of its
development 1,690 tons of ore, from which have
been extracted as a net yield for the company
16.8 tons of silver and 598A tons of lead. The
ounces of silver was 404,035 and the pounds of
lead 1,196,987. Thfc entire product of the two
classes of ore treated has averaged 239 ounces
silver and 42.47 per cent, lead to the ton.

The aggregate of deductions for freight and
treatment (not Inclusive of the cost of pack-
ing from the mine to the railroad ware houses)
$42,200, for duty $9,884.20; for smelter losses of

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SHIPMENT AND PRODUCTION. Concluded

lead $3,620.85 and silver $13,131.02 brings the
gross value up to $308,806.44 or $182.70 per ton.
The net value, or profit to the company for the
ore, at the point of shipment, averaged $141,993
per ton, — a showing that would be exceptional
even in the case of a first-class gold mine. Put
in still another form the first and second classes
of the Reco ore, average together in value at
point of shipment 10.95 cents per pound gross,
and 8.50 cents per pound net.

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DIVIDENDS

The following table shows the date and amount
of Reco dividends paid to May i, 1897:

1895
1896
1897
J897

February J 5th,
April 30th,

$ 7,500
30,000

100,000
50,000

Note.— Since this report has been tabulated
and sent to publishers, another dividend of
$100,000 has been declared by the management
from the proceeds of ore taken out ; and larger
bodies of ore have been opened up, and regu-
lar dividends are now assured for several years
from the ore already in sight.

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THE ORES

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While Lead is the predominating metal in the
Reco, as it is in the Slocan mines generally, the
ores show extraordinarily high averages of silvsr
value in all the veins.

From No. 2 vein smelter shipments I. (first-
class), showing the average of $104.20 net profit
for all the tonnage treated, are of coarse and
medium grain galena; and II. (second-class)
are vari-colored carbonates, averaging in net
profit $61.05 per ton. One odd variety of ore
found in No. i tunnel runs $400 to the ton. It is
a peculiar blend of grey copper and galena that
resembles hematite of iron. Stibnite, which
ignites and largely evaporates in its own flames,
is also disclosed in quantities in this vein. It
runs 160 ounces of silver and as high as 50 per
cent, lead to the ton. Immense ore bodies
adaptable to concentration are characteristic of

this vein.

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THE ORES.- Concluded.

The first and second-class ores of the Reco-
Goodenough vein (No. 3) are classified respec-
tively, X and XX. The average net proceeds of
the total shipments of X ore is $395.80 per ton.
It is a fine grain galena carrying ruby and Q.nti-
monial silver, grey copper and sulphurets. The
average proceeds netted from the XX shipments
is $160.07 per tor This ore is soft lead carbon-
ates. Assays from it have yielded as high as
1,100 ounces of silver to the ton, and from the
former 13,030 ounces, and is acknowledged to be
the richest galena in the world.

The classification of the ores is determined by
the lead percentage rather than the silver values ;
the X class running high in lead, and the XX
comparatively low. In fact the silver values of
the XX ore often run equal, and, at times, in
excess, of those of the X shipments. For ex-
ample, the highest X smelter return is 730
ounces silver and 67 per cent, lead ; the lowest X
returns, 292 ounces silver and 72.6 per cent, lead ;
while XX shipments have yielded, in one in-
stance, 596 ounces of silver and 54.8 per cent.
lead.

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OTMERniNES

The Reco is surrounded by numerous mines
and prospects, and though none ship as rich
ore as the Reco, yet some are paying even
more profitably. It is claimed that the mines
of this immediate section are producing silver
at a less cost per ounce than a.iy other mines
in the world ; and this, too, with the wages of
miners at $3.50 per day, and laborers $3.00 per
day. The lead in the ore often more than pays
the charges of transportation, smelting and duty.

The records at this time show 72 mines and
prospects that have shipped paying ore in this
mineral belt, 26 of which have paid dividends.

The mineral belt includes the section of
country lying between Kootenay Lake on the
east and Slocan Lake on the west, comprising
an area about 30 miles k ng by 6 miles wide.

The production from these mines has greatly
increased each succeeding year since their dis-
covery.

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DEVELOPMENTS

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Work on the Texas Vein (No. i) has not been
prosecuted beyond assessments, because of the
vastly greater economy in its development to be
insured by the concentrator and tramway, when
completed.

On the Re-jo (No. 2) three tunnels (Nos. i, 3
and 5) are being driven. Another, No. 7, will be
started below No. 5, on the vein, at an early day.

The Reco-Goodenough vein (No. 3) is the most
thoroughly exploited. It is opened wHh thre^
tunnels (Nos. 2, 4 and 6). A fourth, a cross-cut
tunnel (No. 8), is in several hundred feet, and
will tap the lead in 600 feet. A fifth tunnel on
t^ie lead (No. 10) wiH be started immediately,
s*.'!! Lower on the mountain.

/.i. '.Sould be explained that all of these work-
ing;- . ' :cept the 275 feet of cross-cutting in No. 6
tunnel, are in the veins and expose, alniost con-
tinuously, bodies of shipping or coni;entrating
ore. By the time this report has bct.ii published
the several tunnels will have been extended
hundreds of feet on the ore chutes. For further
f,t^^r>rrkiition, see accompanying plats of under-
i^Tound workings.

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VALUE INSIGHT

In estimating the developed resources of the
mine, May i, 1897, that is to say, the worth of
the ore blocked and in sight, — the averages em-
ployed in obtaining the sum of values, gross and
net, include maximum expenses for the earlier
period of the history of the mine, when, for ex-
ample, it cost $30 to move a ton of ore to Kaslo,
as against a present $7 charge ; and the smelt-
ing charge was $7 more per ton than now.

Such is the perfection of the tunnel system by
which the mine is opened up, that the cost of
production is reduced to a minimum.

The ore in sight at present writing (May i,
1897,) in the Rerc Goodenough (No. 3) workings
is $1,650,000. It is with grea^er difficulty that
the value of the large bodies o5 concentrating
ore in the Reco vein (No. 2) is measured, but the
most conservative estimates place the gross sum
at not less than $1,000,000. In round numbers

VALUE IN SIGHT. Concluded.
then, the exposed resources' sum up $2,650,000, or
a prospective profit of $1,987,500, after subtract-
ing mining, transportation and smelter charges.
This manifest makes no allowance for the great
saving to be made by the concentrator and tram-
way plant. It represents the resources of the
mine as blocked out and valued in accordance
with past experience in producing, shipping and
treating ore.

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The "Texas" was located by the organizers
of the Reco Company, June 14, 1892; and the
other claims of the group subsequently ; save
the "Ruecau," v/hich was purchased from its
discoverers for $2,700, July 15, 1892.

The Slocan was then a wilderness, in which
subsistence was precarious and work perilous.
Wagon roads were unknown, the trails were of
the roughest description, and supplies of every
kind very scarce and expensive.

Beyond the taking of necessary steps to pro-
cure the title to their claims, prospectors and
purchasers did little or nothing that year ; and
in 1893 they were further discouraged, despite
the high assay values obtained throughout the
mineral belt, by the slump in silver values, con-
sequent upon the repeal legislation in the United
States and the closing of the Indian mints. Not
until the late winter of 1894 did the owners of
the Slocan mines begin to demonstrate the reple-
tion and richness of the ore bodies. CapitaMsts

•r.

u
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^m^&m.

REVIEW. - Continued.

■X.

'J
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had bonded the Reco property in 1892, then a
mere prospect, for $80,000. After having paid
the initial instalment the silver mining outlook
for 1893-4 disheartened them, and they allowed
the property to revert.

In November, modest quarters were erected
near the Reco vein at tunnel No. i, and from that
time dates the continuous development com-
menced without capital.

The following year the Reco-Goodenough vein
was discovered accidentally, on the line between
the Reco and adjoining Goodenough claims, the
fissure cutting clear through the Reco claim.
Tunnel No. 2 was started that year, and tapped
the ore chute at the grass roots. The profit of
mining the property has ever since increased in
precise ratio to the progress made in opening the
fissure.

It was deemed prudent to hold the carbonate
and mixed ore bodies of Reco vein No. 2 in re-
serve for the day when a concentrator could be
added to the equipment of the mine. No abate-
ment of work was suffered, however, in the three
tunnels which were planned to open the " Big
Lead" for economic production.

Shipments have been steadily continued less
than four months each year, making the total

.'mm^'

RECO KAW-IIIUE TRAIN, 1896.

►,

■ ,.j».:„^.v f:^1l-.«!;

REVIEW. Concluded.

period during which the mine has obtained re-
turns from the smelters, not to exceed 12 months.

Circumstances not to be readily overcome
rendered it expedient to work the mine under full
force and ship ore to market only while deep
snow lasted in the mountains. A saving of $5
per ton was thus made, being the difference in
charge per ton for packing in the summer and
*' rawhiding " over the snow in winter, from the
mine to the railroad station. By th latter
method an average load of a ton, wrapped in a
rawhide that slides down the mountain trail,
rough locked with a log chain, is taken out by
one horse capable in the open months of the year
of packing only an average of 300 pounds over
the same course.

Prior to the incorporation of the Reco Com-
pany, September, 1896, profits to the amount of
$37j5oo were divided among the owners. During
the intervening five months two dividends of
$50,000 and $100,000 respectively have been de-
clared, while the sum of $50,000 has been ex-
pended on permanent improvements and develop-
ments designed to facilitate production.

c-X'

Via.

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VIEW OK PROI'OSED TKAMWAY FOR THE RECO.

Tension Station. L(»wkr Terminal.

Upper Terminal.

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IMPR(MnCNT PU\N5

IhM

It is the purpose to curtail ore shipments until
such time as the Company's concentrator at
Sandon, and its aerial tramway to the mine shall
have been completed. Both should be in opera-
tion next December.

The concentrator will cost, approximately,
$40,000, and the tramway $35,000. An auxiliary
electric plant will furnish light for the mines as
well as the mill.

The jramway in its length of 9,993 feet will
ascend the mountain 2,600 feet, crossing the
Noble Five Slide at a height of 560 feet, with a
span 2,750 feet long. It will transport 250 tons
of ore daily, at an estimated cost per tor of 10
cents, as against a present average charge of
$6.00 per ton to the same poirt of railroad ship-
ment. The further saving to be iuad« from this
improvement can be appreciated from uhe fact

that the present pa?k rate of $15.00 per ton for

■ fUK .- Hm»mi>''-M'^'"

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IMPROVEMENT PLANS. Concluded.

O
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w Z

the ascent to the mine will be reduced likewise
to lo cents per ton. The annual ascending ton-
nage of iron, lumber, tools and general supplies
has been half that of the descending tonnpge
of ore.

The concentrator will have a daily capacity of
1 20 tons, and will render highly profitable the
large ore bodies of the Ruecau and Texas veins,
the former of which is in an advanced stage of
development.

Water power for the mill is obtained under the
company's valuable Carpenter Creek franchise.
The supply for this purpose will be flumnd two
miles, in which distance a fall of 700 i
secured.

The mine, the mill and the down-town offices
of the company ai Sandon will have private
telephone service.

W»«7ii8

f PERMANENCT

i ^

■jr.
y.

Mr. Carlyle says in his last official report :
"The find'ng of rich veins of ore in either of
the series (geological areas of granite and slate
in the Slocan), such as of silver-galena ore,
points strongly to the fact that as depth is ob-
tained in mining the continuity of the pay chutes
is assured. The veins may be ' in and out,' as
the miners term it, or have perfectly barren parts
along the fissure, but more or less work will
disclose other ore chutes, if this work is pushed
ahead along this fracture in the rock, which has
permitted the passage of ore-bearing solutions
and the formation on ore bodies along it else-
where."

The experience of the Reco amply justifies the
foregoing prediction of the Provincial Miner-
alogist. Deeper and deeper as the tunnels have
penetrated the veins, are they found to be con-
tinuous, regular and clean walled fissures. The

PERMANENCY.- Concluded.

walls come and go occasionally in waves, but
persist and soon straighten out, widening at
times so as to form large and lengthy cavities
filled with the best quality of ore. Two and
three hundred feet in length of ore chute is
common. What is most encouraging is the con-
firmation of Mr. Carlyle's expectations found
in the proof of permanence at all the points of
depth attained in the mine.

'A
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>^' TF' >• -^."9: *-i.""'E^»-

.ss

•i

i SILVER vs. GOLD

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ST.

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By way of comparison it may be easily shown
that investment in the Slocan silver-lead mines
is guaranteed greater profit than in the Trail
Creek gold belt. The cost of mining is vastly
less expensive, while the returns are nearly
three times the value of the gold profits. Not
only are these statements true, but the Slocan
output shows increase of value per ton, with the
progress of development and growth of ship-
ments, while the tonnage of the gold belt de-
creases in average value with the same test.
Both in the matter of volume and commercial
worth the Slocan silver-lead ores take first rank.
To illustrate : The gold, or sulphide division
of the West Kootenay Mining District, produced,
in 1895, 19,693 tons of ore, the average return
from which was $35.67, while the Slocan silver-
lead mines produced in the same period 9,649
tons that averaged $109.72 per ton. In 1896 the

. .w.' <••''•'' ■

SILVER vs. GOLD.— Concluded.

c
c

output of the Trail mines, 38,075 tons, averaged
in value $32.67, and the Slocan output of 18,215
tons, gave $110.35 a ton.

Thus in the two years, while the Slocan silver-
lead ores ranged in value more than three times
the average of the Trail gold ores, their average
value per ton increased 63 cents, while the aver-
age of the Trail ore decreased $3.00 per ton.
This, too, with lead at its lowest notch, and the
silver market falling.

W^^M^^^M^

c/:

» 1

TRCASURT SHARES

X •

When the company was organized it was de-
cided to set aside 100,000 shares of the Capital
Ptock, the proceeds from the sale of which should
le applied to developing the mine on a larger
scale ; and to the purchase and placement of a
concentrator and tramway. The fifty thousand
of these shares disposed of for the creation of a
development fund sold at par value. The remain-
ing fifty thousand shares were reserved for sale
until the concentrator and tramway plan could be
perfected, and for the purpose of providing xor
their construction the residue of the treasury
shares will now be sold.

BT LAW5

ARTICLE I. — Namks, Sharks and Seal.

Skctkin I. The name (if tliis cdipoiation sluill be the "KeC'>
Mining and Milling Cdmi-any," Limited Liiii>ility, incorpor-
ated under tlielawsof the I'roviiicc of British Colunihia, as contained
in the "Companies Act of l8yo, and amendments," on the iSlli day
of Septeml)er, A. 1). 1896, for the period of Fifty (50) years, for the
purpose of carryiiiLj on a j;enc 1 niinint; l)iisiness, uitli the prin-
cipal offices located at Saiulon, Province of liritisli (.!olunibia.

Sec. 2. The Capital Stock of tins corporation shall be One
Million (!*i. 000,000) Dollars, divide<l into One Million shares of
One (*!.oo) Dollar each, which shall be fully jiaid and non-
assessable.

Si'.i . 3. The Corporate Seal of this corporation shall contain
the full cor]>orat<' name of this corporation, with its priticipal olVicc
and I'rovince in the outer circle, and «it!iin tiie circle iht're shall be
the words "Limited Liability," ami in the center the word "Seal."

ARTICLK 1L-- OiiiCKKS.

Skction I, The elective ofllcers of this corporation shall be a
President, Vice-l'rcsident, Secretary and 'IVeasurer, who shall per-
forin tlie usual iluties pertaining; to their respective; olTices, ami
shall be clei:ted by the J 'irei-tors at a incetini^ subse(iiiei)l to the
aiinu.d meeiiii!^, ami inir.ie<li,itely followini; its adjourn' lent. Tluy
shall hold (ifficj for one year and until their successors aie elected
and iiualified.

Sec. 2. The President shall be the chief executive ayent in the
nianairi_'ment of the conrpany, but subject at all times to the ISoard
iif Director^. Ileshall, when jirescnt, preside at ail mei;iuj.;s, shall
si;^n all ceriilicatcsof slock, ;;i;d all contracts and other instruments
in writini;, wliich havi: been l\r.st approved by the Hoard of I )irectors.

Sec. 3. The Vice-1'residenl, in the at)senct of the I'rcsident,
shall possess all the j.owers of the Pixsiilent.

Sec. 4. The Treasurer shall receive all monies a id funds of the
Company, and keep tfur s.ime in such bank of d(po.-,i' as the I5o;'iil
of Directors siiall <K'si(,'uale, and shall payout the .;anie only liy
order of the Hoard of Directors on warrants si(;ned by the Presi
dent or Svicretarv. He Ahall keep a full and accurate Imok of ac-
counts, which shall be open to inspection at all timv-s to every
niemh.r of the board of Directors, and shall m Ve statements of
tiiC' Com])any's linaiices at such times us tlie lii.ivd may direct,
and shall di' ;liaij,'c such other duties peitaininj; to his olTicc as
shall be prescribed by the Hoard of Directors.

Sec. 5. '''he Secretary shall keep full and accurate minutes of
the mcetiiij^s of t!ie hoard of Direclors, and of the Stockholders,
conduct all correspondence (if the Company, ii'|mred by ihc lioar'l
of Directors. He shall keep all slock led^i^crs, stock books, and shall
si^ii all certificates of stock and |u;rform such other dutii-s as peri.dn
to his office, and as may be prescribed by 'he Hoard of !)irectMr,.

Sec. 6. No person shall be elected to the office of President or
V'ice-I'resident who is not a Jhreclor of the corporation.

Sec. 7. When llie President or Vice-President ceases to he a
I >ireclor of the corporation, he or she shall cease to be President
01 Vice-Presitlent, and the otlice is declared, v. -ant, and a new
President or Vice-President is elected.

Sec. 8. The Directors may, liy rcsohition, reijuirc any or all 'if
said ofllcers to yive bonds to the coriioraliou with j^ooil and suffi-
cient security conditioned for the faithful performance of their
respective duties and offices.

ARTICLE IIL

Section I. The affairs of this corporation shall be controlled
and managed by a Hoard of Ki-t,'(c' 1 )irectors who 'iiall be elected
by the stockholders at the aninuu .leeting, and who shall hold office
for One (l) year, or until their successors are electeil and (jiialil'ied.

Sec. 2. No stockholder shall be eligible for election to the
ofitce of Director, nor to any other office in said company, unless
at the time of said Kleclinii lie shall be the bona fide owner and
holder of at least One ''housai'd (l,oooj shares of the capital
stock of the corporalion.

Sec. 3. Vacancies in the IJuard of Diieclors may be Idled by
a majority of the remaining members at any Directors' meetini^
regularly callo'l.

Skc. 4. The 1 )irectors shall elect all the other olTicers of the cor-
puiMtion. and may appoiet dui..ig their pleasure a Sujierinlindt lit.

.Skc 5. The trai'sfe'.- of stock owiumI iiy a Director leaving his
holding less than Cue Thousand (1,000) shares (the arn<JUiU re-
quired to qualify for said otiici;) shall operate as .a resignation of
ollice.

S:.c. 6. The IJoaril of 1 )irectors shall exercise a general supervis-
i<)n over all tli' olVuers of ilu- coi qiany, shall audit all bills and
accounts, and a majority shall conslltutc a (juorum ; am! a decision
of those who meet as herein ]irovided, shall be valid and biiiiling
upon the corporation.

ShC. 7. Regular meetings of the Pmard of Directors sli;ill be
held immediately following the adjournment of the stockholdi'rs'
annual tneetiiig. Such meetin'^ shall be held in the general olTicc
of the corporation.

Skc. 8. Special meetings of the lioard of i)irect>)rs may be
calletl at any time by the I'rcsident, and in his abseiici; by thj
Secretary, 011 ai)plicalioii. in writing, by a maiority of the Direc-
tors, by m.dling 10 each Dirivtor at lea.-t thirty (,?C)) days prior to
the date of such called ineetmg, a written or jjiinted notice, staling
the day and place t^f holding such meeting.

She. 9. At each ;imuial meeting of the stockholders tlie Direc-
tors shall present a gein.'ral suteim-nt of the busiii-ss of the juc-
ct-diiig year, a rcjiort of the Imamial coiulilion of the corporatif)ii,
and a report of the condition of tlu; plant.

Sec. 10. A ( leneral Superintendent may be appointed l)y the
Hoard of Directors, and be reiroved at their pleasure. He shall
take charge ot the iiropeily belon.'ing to the company, and control
and direct all labor and business ji' riaining to the interest, objects
and Ojierat'on of the company ; but he sliall not have powiir to
sign notes or contracts for the company ; neither shall he have the
power to incur any indebtedness, unless specially authorized by the
Hoard of 1 )iieetors,

Skc, u. The olVicers ami superintiiident shall receive such
t ompetisation for their services us the Hoard of Directius shall
deterndne iipoii.

ARTICLE IV.— STocKiroi.DF.Rs' Meetings,

Section i. The .inmial sliickholdori' inectinjj oi i!iis corporri-
tion shall l)e hold at the ijcneral otVice of 'he cdiporatinn, at Saiulon,
Province of liritish Columbia, on the I'irst day of I'ebruary of
each year, frv)ra and after the lith day of November, 1S96. IVo-
vitied that when such day shall fall on Sunday, or a icj^al holiday,
sucli meeting sliall be h<;ld on tlie day previous, at the same hour
and place, for the purpose of electing a Hoard of Directors and
ruch other business as may be specially stated in the call for the
meeting.

h,'EC. 2. Special meetings of the stockholders may be called by
stockholders representing two-fifths (?) of the stock issued, tiling
wit 1 the Secretary a written call for such meeting, stating the ob-
jecc and whether such meeting shall be held at the regular place.

SliC. 3. At all stockholders' meetings, each stockholder shall
be entitled to cast one vote for each share of slock held or owned.
This vote may be cast in person or by proxy, appointed in \\ riling,
duly liled with the Secretary and by him entered of record in the
minutes of the meeting.

Skc. 4. A (juorum shall consist of the majority of the shares
of stock, but stockholders representing less than a ipioruni of
stock may adiourn the meeting to a future <lay,

Sk(-'. 5. The President and Secretary of the corporation shall
act in their olticial capacity at all stockholders' meetings.

Ski;. 6. The Secretary shall mail to each stockliolder at his last
known place of residence, a wvitten or printed notice of the time
and place of holding each annual or special meeting. Such notice
shall be mailed Thirty (30) days prior to the date of the meeting.

ARTICLE V.

Section I. One Hundred Thousand shares of the Catiital
stock of this company is hereby set aside as Treasury stock, fully
paid and non-assessable, which stock is to be helil, managed and
sold under the direction ol the lioard of Directors, and the pro-
ceeds thereof are to be used in the development of the ]irn])tity
of the company, and in the payment of its legally contracteil debts.

Skc. 2. If it shall be unnecessary to dispose of all of said
Treasury stock to develop th*' said j)roperty, «.» many shares as
be then the balance, may be diviileti pro rata b\ a vote of ihe
stockholders of the s.iid company, among the stockholders i>f
record at the time of said distribution.

Skc. 3. All certificates of stock shall show the name of the cor-
poration, the capital stock, ihe par value of shares, to whom issued,
the numtn^r of shares in each certilicate, antl shall be signed by the
I'resi lent and the Secretary, and sealed with the corporate seal.

Se*'. 4. Shares of stock must bi; transferrei! upon the books of
the corporation either in person or by attorney, upon surreiidiiing
the certificate to the Secretary for cancetlation and signing suih
transfer in tiie regular transfer book of the corjioration, whereu])on
a new certiticate shall l>e issued to the p.uty becoming the new
stockholder.

ARTICLE \ I.— .\mknoments.

Section I. These by-laws or any nart of them may be abridged,
oltered and amended, addi-d to or repealed by tin same Imh1\
which enacted them, at any regular meeting (or special meeting
called by the Secretary Un that purpone; of such Ixxly.

--<*^m^.

•..:V"f: