The Butte inter mountain. [volume] (Butte, Mont.) 1901-1912, 1901-11-02
ALL THAT CL|TTERS
THINGS WITH WHICH INVESTORS
SHOULD BE FAMILIAR.
LESS SHARES THE BETTER
Surface Ground in Butte Is Always
Valuable-Outlook on the East
Side Is Very Promis-
ing.

things which man who contemplates
investing in mining stocks should con-
slider before making his proposed pur-
chase says a well-known authority
on such matters. First. he should as
certain whether the company in tine
shares of which he figures on investing
owns at least some Of the ground it is
working or intends to work, or merely
has it under lease and bond. Second,
he should learn the number of shares
the company has on tap; and, third he
should familiarize himself with the
mineral possibilities Of the ground and
the area of the property together with
what the cost of opening it up is likely
to be to the company.
The first proposition is one which
few persons stop to consider, yet it is
of the greatest Importance if an investor
expects large returns from his outlay.
A few men can secure an option on
some property, organize a company, sell
stock for the purpose of raising money
with which to work the ground and
lift the bond, but if nothing is struck
the bond may not be lifted and the
property will revert to the owners, leav-
ing investors in the stock with moth
ing save the highly colored stock certi-
ficates. When company owns it's own
ground, however. the chances for re-
turns are always better, as the sur
face might become valuable for other
purposes even if no mineral is struck
below. There are several examples of
this in Butte. the Volunteer and Stevens
Mining companies being two of them.
Both of these corporations owned their
own ground, the former the Volunteer
claim, west OF Missoula gulch. and the
latter the Stevens claim adjoining the
gulch on the east. Although a shaft
was sunk on the Volunteer to a depth
of about 500 feet, mineral in paying
quantities was not found and the holders
of stock therefore derived nothing from
this source But the surface was splen-
did for building purposes and, by and by,
as the city spread west, it was plated
into building lots which were sold at
good prices and the money divided
among the shareholders The Stevens
passed through a similar experience On
the other hand there was organized a
few years ago a company called the
st. Paul & Butte Mining company which,
in it's prospectus. set forth the allega-
ton that it owned 80 mining claims in
the Butte district, all rich in precious
mineral. 1t owned none of the claims
1t pretended to own, but had an option
on them. The company sold stock in
the East. principally in Iowa, Mime
sofa and Michigan II did little work
on one of the claims and then Quit,
with the result that all of the property
reverted to the owners. Later the COM
pany was dissolved by order Of the dis
trict court to which an application for
dissolution had hoon do nv, H.
GERS, and the purchasers of stock are
still holding their certificates, if they
have not burned them.
Less Shares the Better.
THE smaller the number of shares in
a mining company the better it is for
the stockholders. A million floating
shares of stock in company owning
only few prospects is not conducive
to the payment of large dividends on
each share. as it requires too much
money to go round even if the dividend
period is ever reached. The large min
ing companies operating in Butte haver
rev shares as compared with some of
the smaller concerns The Boston &.
Montana. the greatest dividend payer
in the state $4,000, 0o0). issued only $780,
900 shares: the Anaconda, 1900, 900 shares:
Parrot 22s. $50: Butte 4 Boston. 200. 600
Montana Ore Purchasing company, 3d.
900; Moulton, 100000; Alice, 400, O00 All
of these companies own the mines from
which they are getting their ore-there
is no lease and bond about any Of them.
And they are all mines. The Calumet
& Hecla of Michigan, which has paid
it's shareholders $4,000 900 in dividends
issued only 100000 shares of stock; and
it has real mines.
Mineral Indications.
THE location of ground with refer
ence to the known mineral zone is also
of considerable Importance to investors.
one company might have a heavy pro-
ducing property. while another company
operating ground right alongside Of it.
either north or south, might not have a
pound of ore because there may be no
vein In the claim. AS a rule the veins
OF the Butte district have an easterly
and westerly course and any claim locat
ed along the course OF these veins is
likely to become producer. This is the
reason some of the East Side claims are
so prom1sing-they are on veins that
nave been developed on the West Side
to an extent sufficient to warrant the
Delier that they will, with proper de-
Velopment turn out all right. Surface
indications on them are most fatter-
Ing; in fact. they are better than they
are on the Anaconda hill, on which sew
eral Of the largest Butte copper pro.
ducers are situated. The ground Is highly
for nearly a mile north and
south, which is about the width NJ the
large copper zone on the West Side.
while still farther south and north NJ
the large zone there are good indications
of smaller bodies of gold ore.'
AFTER COAL MINES.