The Helena independent., 1893-02-23
It IS A DIVIDEND PAYER.
A Well-Known Montana Mine That
Has More Than Justified
Its Promises.
DividsSds to Date Havo Run at
the Rate OF 40 Per Cent
Per Annum.
A Company That Occupies Unique Posi-
Report OF the uscla Console
dated Company.

tion-Keport of the uscla Console
dated Company.
Ala time whom SO much is heard on all
sides of the depreciation in the market
price of silver and the shutting down OF
silver mines in all directions in the great
silver producing states of America. IT Is
satisfactory to find that our predictions AS
to the prospects of the Elkhorn Mining
company have been 80 completely justified,
SAYS the London Financial News. Even
with the present low price of the metal,
this company continues to distribute It's
regular quarterly dividends st the rate of
40 per cent per annum. The ore reserves in
the mine are at present equal to. If not in
excess of. the amount taken over at the time
the property was sold to the English com
pany, and there seems every probability
that this rate of dividend can be maintained.
When the mine was toated here by the
Mining and Financial Trust Syndicate,
limited. we commented favorably upon its
prospects. 1t was most favorably omen
that a very large number OF the shares was
subscribed for by residents in the neiShbor-
hood of the mine. This fact,-a most un-
usual one in the history Of American mines
nonted in London-to our Judgment
youched for tho value of the mine. and
proyed that in reseling 1t the Mining and
Financial Trust Syndicate. limited. had not
unduly inflated the capital. Fortunately
for the shareholders. the issue OF the capt.
tai, in the first instance. was
not an entire success; and the
board were handicapped by only
having e1o0oo of cash to deal with. This
left 25 900 of the shares unlssued and re-
duced tie capital upon which dividends
would have to be paid to el75.OoO. When,
in the early part OF 1892, the board were IN
want of additional funds. they wisely en-
ployed portion of the surplus profits. in
stead of making any further issue. Now,
with deprecated value for the produce
of the mines. the shareholders are reaping
the value of this policy, The first accounts
1891. covering Geriod of ten months TO
December, 1890, showed net profit OF
e54. .567, out of which dividends amounting
to G39. 376 we're paid (belng at the rate OF 3o
per cent. per annum), and sum of over
9l4, 600 was carried forward. In the second
wear the balance of net profit. including
the sum brought forward, amounted to
rS5. 43O out of which dividends amounting
TO SOS. 627-or at the rate of 37]9 per cent
per arnum-were paid, leaving 1l9, 500 cat
ried forward. or this sum the board took
power to devote 900 in augmentation OF
the working capital, leaving 81 500 to carry
forward During 1892 the following
monthly profits have been reported:
January y,.........e 6,424 August ,....... e'eo3 o
ebr1ary rah ~ s SssptSb%ner sap} ober 91ss 1ss
April............ 1854 Novemb ber....". 6.o2l
May ............. IT'S December '..... 6,l2o
July ............. 72l6 Total ....., eS3 466
When it is remembe, cd that anything
over sc, 600 profit per month assures the
payment of the 40 per cent dividend. it will
be readily seen that no probable f1uctua-
tions in the rice of silver can very mater
ially affect this mine. which can continue
to ea profits while silver is ANYTHING over
Is. 4l5d. per ounce standard. Out of the
profits of 1892 as shown above, together
with the sum of 97,sOO brought forward,
amounting in all to COL 26G, the company
has paid 974.375 in four interim dividends
amounting in the aggregate to distrlbu-
tion of 421a per cent for the year, leaving y
balance to carry forward to the credit Of
the current year of about G17, 600. The
total profits realized from thu commence
ment of operations to Dec 81, 1S92-a period
of two years and ten mouths-amount
to G209 257. equivalent to q return of nearly
l2O per cent upon the capital of she COM
pany. OF this sum $17937S has been dis
tributed in dividends, 1000 has been de-
voted to capital purposes, and the balance
goes forward. 1t may naturally be said
that past results are no criterion of future
prospects, but here the mine would seem to
be in a strong position also. When it was
taken over, the engineers who reported
upon it stated that 25,OOO tons of ore were
in reserve. Owing to the careful manage
1nent of Messrs. Plummer and Molson
these reserves have never been allowed to
fall below this figure. and at the present.
time far exceed II. 1t seems strange that
with such record and such prospects
these shares should never have re-
ceived the attention they merit. Mining
investors on the look out for bona tds
protetty, distributing large dividends, and
with tire reputation of being honestly man
aged entirely in the interests of its share
holders, might well turn their attention to
it. Some explanation of the neglect is, nc
doubt, to be found in the general distr usi
that has attached to any undertaking likely
to be affected by the fall in silver; but if
under the most adverse circumstances inn
apinable, the price of the metal ahould fall
TO- say, % Cd per ounce Ga most improbable
fCurel-even then this concern would still
be enabled to earn good dividends for Its
sha eholders.
Turning to the other side of the silver
question, 1t may be worth while to consider
the possibilities awaiting this com pany
should silver recover any portion of the
large depreciation it has sustained during
the last eighteen months. Such a reaction
is quite possible. The production of silver
from America during the coming year Will
no doubt, be to some extent curtailed
Numbers OF silver mines havo been closed
and this not entirely on account of the low
price of the metal, but by tho simple pro
cess Of exhaustion. Again, the country il
now 80 thoroughly prospected that ne,
discoveries of any magnitude-such as tn
Comstock-oan be expected. 1t has bee
estimated that falling of in tn
production Of something like 30,
O00.OOJ ounces against lS9
may be expected this year. THIS
in itself, while of necessity favorably intlu
encing the price of the metal under exist
ing conditions of supply and demand
wonld to n large extent minimize the e1
fects of the anticipated and much talked
of repeal OF tho sherman act. Elsewher
note Of warning has bsen sounded by tn
management of the Broken Hill mine--th
largest silver pr oduclng property in th
WORLDWIDE inform their shareholders tn
tho present rate of production is taxing ia
severely the resources of the property. an
cannot be maintained. All these inpol
tsnt Indications, and many Others woul
appesr to point to an upward movement
the price of silver during III
first Six months of the Gu
rent year. When ii is rensmbsse
hnt in fha riea ~