Tonopah Mining Company of Nevada.

The Tonopah Mining Company of Nevada was incorporated on July 12, 1901 in Delaware for the purpose of developing and operating a gold and silver ores property at Tonopah, Nevada. The company was formed by a group of Philadelphia businessmen; throughout Tonopah's history, it was managed by eastern capitalists. The company maintained a mining operations office in Tonopah, Nevada and a business office in Philadelphia where the records were kept and the annual meetings were held.

Within several years, subsidiary companies were formed to operate a mill for ore treatment, a steam plant to generate electricity for the mine, and a railroad to transport the ores. The Tonopah Mining Company of Nevada began exploration and development for additional metal mines in 1910. Over several decades, properties were purchased in Colorado, Nevada, Canada, and Nicaragua. Most of the subsidiary mining companies proved unsuccessful and the operations were limited. The parent company provided all funds for preliminary development work, plant installation, and working capital. All of the subsidiaries were incorporated in Delaware.

The work at the Tonopah mines was hampered by labor shortages and development work was stopped during 1917-1919. Mining costs increased due to decreased tonnage from the underground workings, and the increase in the wage scale and the cost of supplies. The company saw mixed results in the 1920s.

Mining operations at Tonopah were closed for several months in 1930 but the mines were reopened under the leasing system. During 1933 and 1934 the number of lessees at the Tonopah mine increased due to the rise in the price of gold and silver and total net profits increased during those years. However, by the 1940s, the company was clearly on the decline The grade of ore at the Tonopah mine and the number of lessees had consistently decreased. Net profits continued to fall due to reduced tonnage, increased costs and lower values of silver ore. Leasing had remained profitable until 1944; the shortage of lessees reduced production so that the company was just breaking even.

In July 1947, the Securities and Exchange Commission found that the Tonopah Mining Company of Nevada was primarily engaged in business as an investment company and was subject to the Investment Company Act of 1940. As a result of the SEC ruling, it registered as a closed-end investment company in August 1947.

Mining operations at Tonopah ceased with the end of the final lessee's contract in 1948 and the company was dissolved in June 1965. Several suits were brought by stockholders against the directors and affiliated companies charging violations of federal securities laws and breach of fiduciary duty under state law. After years of litigation and numerous appeals from 1957 through 1984, the suits were dismissed.