The Helena independent., 1893-02-23

lead and silver mining industry. In our
own case there were two things against us;
first sea city of %; second. the very low
price OF silver aud lead. The steady de-
cline in the price of our product will speak
for itself, and needs no comment from me,
as to the effect this has had ON our net an
nual results. One example may be enough.
Take 1892, the smallest year in product OF
the twelve past years, we produced 364.3 396
ounces OF silver. Price in 1881 and 1882,
Sill per ounce; In 1892 We received
Sc cents per ounce; difference 2s
cline cline loss M for tho year slo2 2ososs
'My contract with this company. as its
general manager, will terminate on March
6, 1898. ] consider it. therefore, my duty,
at this meeting. to show the condition of
thu business at this date, and in so far as
can ntelligently, speak OF its future; this
in justice to myself and to the man who
may follow me:
"lhe events of the PAST twelve years are
familiar to You. 10 summarize, there has
been raid to creditors (due twelve years
apo), $77, 1856. 1s; to the stock holders, in cash
dividends. from July, 1881, to December.
1892 $1.637.500. and there romans to-day
in our treasury cash surplus of $1S2.-
1856 "a, making total OF $1.s97, ,621. n cash
profit, earned in twelve years. This is the
only witness I propose shall testify in my
behalf The great question, upon which
hangs our future dividend paying SUCCESS,
and the satisfactory solution of which
alone can make the other departments
of our property valuable, is ore. This IL
ever the unknown quantity in mining. No
man can tell what the future Developments
will reveal. In the bottom of the Cleopatra
mine there is now ore enough developed to
supply three furnaces. day and night, for
three years. but it is of too low grade to pay
for extraction, the assay value being only
about two per cent lead and four ounces
silver per ton, not even valuable enough to
concentrate.
should you ask me. Is there much pay
ing ore now in sightp l would answer, No.
should you ask. Are you sure you will de-
velop much paying ore In the future! my
reply would be, No Should you further
property to believe that labor and the fur
ther expenditure of treasure will bring to
light paying oreT l would answer. Yes;
but how much and how valuable l do not
know
''Here is demonstrated the soundness OF
the position taken in my first annual re-
port in 1881, viz: Nothing In mining should
be considered as available to stockholders
except cash. For twelve years have in
sisted that the cost of all permanent i'm
provements. buildings. tramways. machi-
merry. supplies, etc. (smountlng In this time
to more than S3O0,OO0), should at once be
charged to expense and that the stock
holders should be shown. as profits each
year, only the cash remaining after all ex-
penses had been paid. You may call this a
cold-booded proposition; but ii is safe
one and never deceives.
considering the future and the best
course to pursue, would say. push devel-
opment work day and night, for six, twelve,
or even twenty four months; spend, if nee
essary, every dollar now in the treasury.
wisely, carefully, economically; hold, as
| long as silver is worthless. the ore that may
be developed. Pull together. Have con-
tidence in each other. This is the only pos
sible road to success.
"Unless more ore should be developed
and the price of silver advanced to at least
one dollar per ounce, it would not be possi-
ble for my successor to earn any dividends.
You could not expect any man to make ore
or regulate the price of silver. But. given
seventy-fys tons OF ore daily. assaying 20
per cent lead and forty ounces silver per
ton, with our plant in its present condition,
and l would guarantee one per cent dlvi-
dend monthly, on our present apital stock.
selling silver even at one dollar per ounce"