The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1897-05-19


so favorably located Of this amount
100000 shares have been set aside as
treasury stock or working capital
stock, the proceeds from the sale of
which viii be utilized in the thorough
development of the property, and a
provision has been made that none of
the individual stock is to be issued
until 10000 shares of the treasury stock
have been sold.
In its personnel the company is a
strong one and with good backing
financially, such as the standing of
the members of the company and the
value of the group will insure. there
is no reason why another producer
should not be added to Utah's list Of
shipping and paying mines before the
end of the year.
c. L. Dignowity. the well-known
mining man and promoter, has the
management of the East Northern
Light enterprise, and under his super
vision the company should make a
favorable showing soon after active
work has begun in the development of
the property.
Included in its prospectus is the fol-
lowing from the Mining Review -eia-
tive to the disposition of treasury
stock and the outcome of the incor-
poration of company for the devel-
opment of the now noted LeRoi mine,
dl fOSSIdnC, brltlSn Columbia
The Miner says:
The history of the DEVELOPMENT of the
famous LIE Roi mine in Rossland, Brit
ish Columbia, which is only two years
old, has paid 100000 dividends in ten
months of working, and is now paying
dividends at the rate of So 600 per
month, should convey a hint to those
enterprising representative men who
regard the man who attempts to sell
fre etc in
as a horse-thief or a confidence man.
The LIE Roi was acquired two years ago
by three or four impecuniouS lawyers
of Spokane, who We're at their wits end
what TO do with the property. They Of
ferred two-thirds of it for enough
money TO maintain three men at work
for six months, but their offer was
spurned by the capitalists. Then they
Incorporated and sold treasury stock
to their acquaintance. including serv-
ant girls, laborers and clerks, and by
this means obtained money enough to
develop the mine. The result is all
right. The LIE Roi is today one of the
most important mines in the Kootenai
region, and while it has paid 5000, 900
in dividends. its output has been so
heavy that it has paid for improve
ments costing more than twice that
sum.
The fact that a. company owning an
undeveloped mining location is selling
treasury stock conveys nothing repre-
hensible, nor does it discredit the prop
erty, albeit many imagine themselves
shrewd by asking why, if the property
is valuable, the company awnts to sell
stock? The answer is that the COM
pany wants the money to make a mine
out of the prospect, and that the selling
OF treasury stock is the only means
at hand to raise that money, just the
same as the promoters of a railroad en-
terpriSe try to sell their bonds to build
the road. The buyer of the treasury
stock is, of course, taking chances, but
unless he is blind enough to buy into
one of these concerns which guarantee
perate. Not any more than they would
post on a ledge that he may have
stumbled across and which he might
think would be valuable. For in either
case he can't see into the ground. Buy
ing treasury stock is speculation with
the chance for absolute loss compare
lively small If the mine turns out
well you receive handsome returns on
your investment. II it doesn't turn out.
your los sis trivial one. OF course
the investor should use ordinary bust
ness precaution, and avoid placing his
money in wildcat schemes. Three es-
sential points of information are neces-
sary in such investments: The location
of the property; the nature of the title
to it; and the character of the men who
are floating the enterprise and who
will disburse your money.