The Helena independent. [volume] (Helena, Mont.) 1875-1943, 1891-04-18
THE ELKH0RN WAS PRIZE
A Montana Mine Which Ranks With
the Best on the London
Market.
Captain Plummer's Report of the
Company's Operations and
Prospects.
Plans of the Drum Lummon, and Mr..
Bayliss' Speech to the London Direc-
tors-General News.

Plans of the Drum Lummon, and MI
Bayliss' Speech to the London Direc-
tors-General News.
It is not very often that tho Financial
News, of London, %editorially goes into tht
merits of a mining enterprise; and when il
does break the rule, it must be- a very de-
serving enterprise which brings forth its
praise. In the issue of the paper of April
2, it comments on the Elkhorn company,
the promises it made to its promoters, and
on Captain Plummer's report to the di-
rectors in this wise: We have now before
us the first annual report and accounts of
American silver producing company, whose
actual operations have more than justified
the statements upon which the capital was
asked for little more thar a year ago. We
refer to the Elkhorn Mining company. The
prospectus inviting applications for about
so, 900 shares of 81 each, part of Il
nominal capital of 100000, was issued
early in February last year, 100000
in fully paid shares going to the vendor
and $4,000 having been privately sub
IL "oo "a ehap phS NohiPtAhS
was formed "for the purpose of acquiring
and working the Elkhorn silver mines, Il
going concern making large profits, stu
ated in Jefferson county, Montana, L. S.
A. In very many cases, as our readers are
aware, ''going concerns require a lot of
pushing on, and the expenditure of a vast
amount of money about which the vendors
have been discreetly silent. But i'll the
case of the Elkhorn company the descrip p
ton was fully warranted. 1t was really a
'sgoing concern" and it has o ON pro-
ducing profits at a rate in excess of the
estimates put forward in the prospectus.
The directors mention in their report
hat, owing to the very valuable assistance
afforded them at the outset by the Mining
and Financial Trust syndicate, they were
enabled to enter into possession of the
property sixteen days after the shares were
allotted. and thus to earn substantial profits
1t least two months before they were en-
titled to by the terms of their contract. 1t
would, therefore, seem that the protit-earn-
ing period began somewhere about the end
of February last year, The accounts cover
the period from Feb. % to Dec. 81, or say.
roughly, ten months, and during that time
the operations resulted in a profit of 5E54,-
SCI. The prospectus stated that upon a
profit of $50 a ton the property would pro-
luce an annual profit of G44, 800 which would
be sufficient, after providing for all home
expenses, to pay a dividend of upwards of
20 per cent. on the capital of the company.
AS a matter of fact, however, Captain
Plummer has been able to reduce the actual
cost per ton for mining. milling, and pros
pecting work from $23.T when the prop
e.ty was taken over. and $2O.3S per ton,
on which the estimates in the prospectus
were based, to SIS. 81, SO that, instead of an
annual profit of 444 500, there has been a
profit for the ten months of G54, 567, and
the shareholders have in reality received
32115 per cent. upon their capital. For the
first quarter the distribution was at the
rate of 20 per cent. per annum. for the sec
ond 80 per cent, for the third 40 per cent,
and'since the accounts were made up an
other dividend at the rate of 40 per cent. has
been paid for the quarter ending February
%. 1t will be seen from this that whereas
for the first half-year of the company's ex-
stence the dividends paid were at the rate
of % per cent. per annum, for the second
half-year they have been at the rate of
forty per cent, and the new financial year
is commenced with a balance to the good of
$500, equal to another five per cent. pay
ment of the :G175.O07 subscribed capital.
The directors propose to continue the dec
l~aration of quarterly dividends in March,
June, September and December, running
from the date upon which the mpan OBJ
tanned possession of the mines, and &C
cording to the recent advices from the prop
erty it is reasonable to assume that the dis
tribution for the current year will not be
less than forty per cent.
To turn back again to the prospectus, il
was mentioned in that document that, be-
sides two railways within eighteen miles Of
the works, one of them-the Northern Pa
citic-was building a branch to the mine,
and that, by means of some changes in the
arrangements and methods of working,
and with the improved railway facilities, it
was estimated that the expenses could be
reduced sufficiently to allow of q profit OF
over $2l per ton of ore. The leport in
forms US that the Northern Pacific branch
has been completed into the company
premises, which considerably lessons the
working expenses. During the ten months
covered by the managers report, the mil.
yield in bullion of the value of
1856, 7l7.54, equal to Salt per ton; be-
sides which 1,064.67 tons of high grade
ore were sold to the smelters, realizing
GS9, lS5.2S, or an average of $751; 6 per ton,
But, simultaneously with the ordinary
working of the mine, prospecting has been
carried on, and most valuable high-grade
ore bodies have been discovered, considera-
bly, enhancing the value of the property
These discoveries, of course, prove that
large reserves exist, and that the main or,
body is increasing in width and value as
depth is attained. Lately a diamond drill
has been set to work for the purpose o
simplifying future research, and the share
holders were informed a fortnight or 50 ap,
that this drill had cut a ledge III the $50
foot level north, two feet wide, assayin,
ninety ounces of silver to the ton. There
is, indeed, about the whole of Captain
Plummer's report evidence that the propert,
is beng systematically and prudentl,
opened out. Large blocks of ore groun,
have been laid OPEN, and, as the manage
says, everything points to a prosperou
future"
When the counts were closed on Decem
Der 81, the company had a balance of casl
III hand amounting to 416,T7, while tn
sundry creditors were about balanced b,
the sundry debtors, leaving out of accom-
altogether, over l,l6O tons of ore on hand
but not valued. The financial condition o
the Elkhorn company is, therefore, quit,
satisfactory, and as "A 1893 shares are helt
III reserve, 1t will lie seen that any possibl,
increase OF capital expenditure is amDl,
provided Tor. "lhe Llkhorn company il
one of those undertakings which go toward,
proving that mining has its prizes as we'll a.
its blanks.''
Tributary to Helena. as the Elkhorn is
much OF the stock being held here, i'll
favorable howln cannot but induce othe
investments of English capital in thi
Vlclnlty, whenever the property offered Jus.
titles it.
The Drum Lummon.
At the recent meeting of the directors O
the Montana company Qimited) in London
MIR. X. L. Bayllss in an hours speech, full,