The Iola register., 1902-02-28

Investment, then the property would
be paying more than 10 per cent on
the investment something that no zinc
smelter in the country is doing. 1t is
fact that some twelve years ago one
smelter cleared almost 100000, al
most 100 per cent on the investment,
with zinc ore selling at little more
than half the present prices. Such
profits did not last.
The following table giving the esti-
mated valuations of the properties in
cluded in the proposed combination,
shows equal liberality in appraise-
ment:
Prime Western Smelter CO.. Gas,
Kan. .... .. ........ .......... .. : 100000
Empire Zinc Co, Joplin, value inclJd-
ing mineral lands o.. ......... ........ 10000
George e. Nicholson, Nevada plant
$4,000, lola plant, SisO,oOO ...... .... $4,000
Colliusvlc Zinc Co. ..... ............. 2lOOOO
Kansas Zinc Mining Il Smelling Co. . 5000
Girard Smelling co. .. ............... 10000
Cherokce-Lanyon, plants, ......... 100000
5. H. Lanyon Bro. .... ............. 1900
Vulcan Spclter Go. ............... $4,000
Bruce Mining Il Smelling Co. ......... 100000
Lanyon Zinc Co., plant at lola, incud-
inc gas and oil well s75O,OOO; No. , at
lola S77O,OOO plant at La Harpe, in
cluding townslte, dwelling houses
lumber yard etc, S9OOOOO plant at
Pttsburg, 100000 ......... ..... e.. 2,72OOOO
Matthiessen u Hegeler smelter, sheet
zinc and sulphuric acid works ....... 100000
Illinois Zinc Co.. sheet zinc. Suphuric
acid works and coal lands .......... 5OeOOOO
james LaTourette. tte................... 125,OOO
n
In November incorporation papers
for the Zinc .Smelting Corporation
were filed in New Jersey, with capi-
talization of . $50, 600, 600, divided
equally between! cumulative preferred
and common stock. For the acquire
ment OF properties not included in the
list of properties then held under
option So, 600, 600 each of preferred and
common stock was set aside. 1t was
then claimed.that cash working capi-
tai of 5000, 600 was provided for and
that, including the profits from the
manufacture of spelter, sulphuric acid
and zinc, annual profits of 81, ,000,0
could be earned. AS seen by the
statistics printed above, this figure
was in excess of the estimates upon
which the combination was being pro.
iected.
The proposed consolidation has it's
good and bad features. 1t will have a
heavy load TO carry in fixed charges,
interest on bonds already issued with
purchase prices based upon the actual
capitalization involved, naturally. 1t
is fact not generally known that with
one or two possible exceptions, the
zinc smelling corporations of the west
are heavily over-capitalized. When
this fact is taken into consideration,
coupled with the fixed charges, it can
be seen readily that an enormous sum
will be required to complete the con-
solidation. Granting that all these
obstacles may be overcome and the
capital secured at low interest rates
previous to the perfection of the or
ganization, then the price of spelter
must be raised and held around
cents to produce sufficient revenue to
meet the heavy interest charges and to
pay dividends oN the preferred stock.
At the same time the price of ore will
be held down to lower figure than
paid at present, with no competitive
buying to stimulate the ore market.
That will work against the producer.
While ore will then be purchased en-
tirely upon an assay basis, according
to the plans of the promoters, the com
bine would have the ore producer at
its mercy, paying a fixed price the year
round-literally placing the zinc min
ing industry upon the same basis that
the lead market is in today.
Zinc smelters have in the past been
very profitable The business has not
been so productive of recent years,
owing to the competition and the ex-
pense attached TO the abandonment of
investments in coal smelters and to
trade conditions. Competition of late
has been keener and the ease with
which smelters can be built and oper-
ated on nominal capital has led to
constant increase of spelter produce
tion. Today new smelter is being
built atNeodesha and second smelter
is being projected by Pitlsburg Kan
sas capital, The promoters have ,et
for themselves a t X hat g. nit
and which include many pro e.
quirlng the most '<Dert ma mt
to place the enterprise upou IT,
able footing.
No Fake salary offer, but big comniss ms 'or
men 10 sell poultry mixture in the vlunt ~
AlanlaAr AIrlH. .IaLrn