Deseret evening news. [volume] (Great Salt Lake City [Utah]) 1867-1920, 1900-04-11
An Explanation Regarding Payment
Of Reduced Dividend,
ONE OF $4,000 DECLARED.
south Swansea Looking well Rich
Assays from the Young America
Reported Exodus from Nome.

the directors OF the Mercur Mining COM
pany met late yesterday afternoon and
declared a quarterly dividend OF i25,-
900, or 1915 cents share. II was fully
expected 10 almost 20 the last moment
that the regular quarterly dividend OF
$4,000 or 20 cents a share would be
paid, and the reduction came as a sur
prise 20 many Of the stockholders A
very good reason Is given for the re-
duced amount The treasury Is not IN
shape TO pay out any more. Manager
George II. Dern has issued a statement
TO the stockholders, which greatly les
sens the force OF The blow which such
a decrease might give. The statement
Is as follows:
The declaration Of a reduced dIyi-
dend by the Mercur al this time, VIII
doubtless cause some surprise and dis
appointment % the shareholders, and IL
Is due them 10 state the reasons for
this action Of their board Of direc-
tors
THE long and short Of the matter is.
We have not enough cash IN our treas
ury TO pay $4,000 dividend our
March gay-rolls have not been quite
completed. so / cannot figure the exact
amount Of the expenses for the month
Of March. but ] estimate that on the
goth Of this month, when the dividend Is
payable, we. viii have about $4,000 on
hand.
Reference 10 our annual report viii
show that on January 18th we had on
hand H53l6O2 Hence we not only
had no surplus but we lacked about
5000 OF having enough to pay our jan
uary dividend. This 5000 had 20 come
out OF the earnings Of the FIRST quarter
OF 1900.
Then, our construction work was not
finished az the time OF the annual re-
port Since the date of the published
statement we have completed our Inn
prOVemCnts. and have paid out an addi-
tIonal $1,000 To $4,000 ON this account
In February. we made the changes
at the mill, adding the new crusher and
and shifting some OF the other
machinery, which nccessitated a shut
down OF nearly "a week This Of course.
crtailed our receipts by several thou
sand dollars.
These three considerations alone ac.
count for our deficit. and but for these
extraordinary circumstances, We should
now oe able 20 pay our regular dlV-
dend comfortably. But in addition 10
these facts 10 Is 90 be- stated that dur.
ing a part Of January and most OF
February. we had run Of hard luck
al the Mill For no apparent reason,
the average values ran very low-some-
thing an mines and miners experience
Ta 81 90
bothered with poor extraction In the
mill due probably 20 more or less base
and talcy ore. Naturally our profits
were reduced considerably by these
conditions The purchase OF two car
loads OF cyanide has also meant the
outlay Of a large sum OF money.
From all of these matters. 10 Is clear
that the mine practically earned its
regular dividend this quarter but 30
was unfortunate in not having q sur
plus To- fan back upon 90 meet It's
extraordinary expenses
During the month 81 March we had
very satisfactory results We pro,
duced about $4,000 and This without
any extra effort % fatten the treasury
We are getting out good tonnage with /
satisfactory values. and at the present
time our earnings exceed the rate OF
% cents per share quarterly Summer
work has many advantages anyway,
and I feel very confident that we shall
have no trouble at an In paying a
$50 600 dividend On July
! am not making excuses, but stating
reasons. Tor our decreased dividend.
and ] believe our stockholders will not
only agree with me that there ls no
occasion FOR alarm IN this action OF
The directors but they will appreciate
the favorable showing made and win |
approve Of the policy Of not paying out F.
more money In dividends than there n
on hand. In the anticipation OF making |
up the shortage. ! have no doubt but |
that the Mercur could pay $4,000 this /
month. and earn enough In the next /
quarter 20 make up the deficit. and |
pay the full dividend In July. But IN I
the first place. that would not be good /
business policy. and In the second place. |
we do not want 90 get our treasury |
into that sort of condition with the |
prospect OF matchmaking the Mcrcur ]
with De Ia Mares Mercur Mines COM /
pany,
We have not done much talking about |
the mine lately but % Is only fair Co /
inform the stockholders that the phys /
Zeal condition Of the property has |
greatly improved during the past two /
months We have paid considerable /
attention 20 developing our base ores. |
and the result is that we end We have |
very much larger bodies OF this material /
than we had supposed and the value /
OF the mine has accordingly materially |
increased.
AS FOR the proposed Mercur- Golden |
Gate consolidation, there is nothing new 1
10 give out vet Nothing has been /
agreed upon. but the negotiations and |
work OF examination are progressing |
nicely. ana the outlook Is favorable f1r 1
the contamination of the deal
80. L----l