The Seattle post-intelligencer. [volume] (Seattle, Wash. Terr. [Wash.]) 1888-1914, 1900-03-21

The Canadian syndicate which has
messed the mining affairs of Rossland
is receiving criticism at the East. In the
Montreal Herald. a special commission
er" says, with reference TO the War
Eagle;
In view of the recent slump In this
stock, It may be well to examine the re-
assuring statements made by the direc-
torate in the light OF their own earlier
reports and declarations, especially as the
public seem once more to have restored
their confidence, as evidenced by the up
ward move in the stock this week.
The subject IS OF widespread interest
involving the value Of an investment
among all classes Of the community. in
Guiding the very poor. who were induced
by glowing accounts published to place
their small savings in a stock which was
paying liz per cent, per month, with a
reiterated statement from the president
that in the near future this would be in
creased.
without a moments warning a great
mine. with a capital OF 10000 and a
weekly output Of over 1000 tons, was clos
ed down, the ordinary workmen all per-
emptorily dismissed: miners for develop
ment only retained; dividends stopped
and within a few hours the stock depre-
ciated nearly 50 per cent. And yet less
than three months ago, on November is.
Messrs. Gooderham and Blackstock de-
clared: THE mine has never looked so
promising, n there was never a better
time to purchase stock. This
sreans an Increase of dividend"
The smallest Investor has IA right to ask
why they continued. 70 pay the excessive
dividend of IS per cent. largely by the
appropriation of none which should
have been used In the important and ex-
pensive operation of development. which
alone could have kept their property in a
safe and healthy condition; and this view
OF the case Is accentuated by the admis-
sion OF Mr.. Gooderham a few days ago.
that the funds in the treasury do not
reach 100000. and are therefore not suf-
ncient TO continue the payment of divi-
dends.
The present attitude OF the market
would seem 30 Indicate that the assur-
ance-. OF the directorate have been ac-
cepted: that the street contents itself by
branding their action as stupid" and
relying upon six months develop
ment work and believing i win result In
necessary value to enable the payment
Of dividends az large or larger than re-
cent. ones on an upward career
h Justification Is there for these
conclusions? Has II been demonstrated
that the War Eagle can be made a pay
ing mine? II so. TO what extent
The upper levels. out OF which the origi-
nal owners made their large PROFITS, are
practically exhausted, and the success OF
the mine now depends ehtlfRlN upon inc
lower ~recoveries. Arc the values main
tanned in these lower levels7 A refer
enCe to the last published report OF the
company In September, iSaS, shows that
ually from s2tN IN lSat TO tl25l In 1Sas
Further. Mr.. Gooderham. in an interview
last fall. stated that the present value OF
the ore produced would range from go
10 f2 We DO not think II would now be
denied hat the smaller nsure Is the high
est at which the average value could be
plarmN and ~ there Is any HlHnntp on this
point. .L- smelter returns would settle
the matter In the same report Il Is
shown that the cost Of mining n re-
ductiOn Is as follows:
Development =,
Smelling charges ..,........".... II o.
rota, .........................s5 IS
So that. upon such a basis ~ cost. even
SIS ore would show a loss. The hopes ~
the however. were pinned to
the realization Of cheap smelling. and,
without dwelling on Tho intermediate
stages We ind that today the charge for
transportation and reduction is ~. AZ
which figure the War Eagle Company
smelling Company. which would keen
them busy FOR two years And u ts not
likely that this figure can be further re-
dueed az = custom smciter AS u rs prac-
ticsliv the same as the Butte charge. AS
Stunning This. then, IA the figure Tor 1870.
and arcuting the figures 81 me company /.
Ia~t published report for other items 81
cost We get;
rct.i.umeut ......,...- .
( Smr.Hns " Ut
Total 2 a
Accounting tho pos~slbilty-and the yieR
ie "a usneniue onc-of reducing this total
I cost To g. and assuming which is equal
ly s~sucaiuc-that the net average value
S. 49, We se' = uArgln ~ 81 To mHin.
. tair "a dividend % "a Per cent per nnuuu'