Bisbee daily review., 1904-11-29

sibilities.
 The declaration of s1.50 and 50 cents extra dividend by the Calumet & Ari- zona. says the Houghton Gazette, has created an immense amount of inter- est in the Calumet & Arizona sister hood of properties. The Calumet & Arizona stock in i.self made an an vance of about seven points on the announcement. rising from 107 to IA. Th.s extraordinary advance on the strength of a 50-cent extra dividend alone is unjustified, but It is justified on the advance in the price of copper and the irproved conditions of the property L may be that the dividend was interpreted to mean that the 50 cents extra would be maintained regu- larly, and that hereafter the Calumet & Arizona would G.sburse g a share quarterly.
 The assumption, however. is unwar- ranted. The Calumet & Arizona last year disbursed s1.5O regular and Q 5O-cent extra dividend at this period. The 50 cent exra being generally known as "Christnas present. Thereaf'er through the succeeding three quarters the dividend was regu- 1arly s1L50 Therefore the disburse- nent this year immediately preceding Chris mas should be taken to mean the same thing. and it is only reason able 10 believe that the next dividend will be $50.
 \ Before it can reasonably be expect ed that the Calumet & Arizona will maintain permanently an adance over the regular s1.50 dividend, the Olver shaft will have to be in commission and producing regularly, and the smell ter enlargement will have to be com pleted and turning cut an increase of refined copper.
 The Calumet 6 Arizona is ma Yged in a remarkably conservative mNner and it is the avowel purpose of the company to build up anC maintain a 'arge surplus and keep plenty of mon- ey on hand for operating expenses and expansion. Therefore while the time may come when the Calumet & Arizona stock will be worth S200 share, anl even more, that time will not have arrived until the regular div idenG' is approaching s11 share per annum, instead of heinz maintained at s6.50 a share per annum as at pres ent. It is quite likely that when the company is ready to maintain an in- creased dividend the form of aG- nouncement will be changed from "S1.5O regular and 50 cents extra" to the full amount which the manage ment believes can be maintained as regular"
 A most absurd and unwarranted statement has been put forth from what appeared to be a reliable source, to the effect that the Lake Superior & Pittsburg would be paying dividends within six months. Not only is such statement a gross misrepresentation, but 1t is a physical impossibility. Six months from now the Lake Superior 1 & Pittsburg will be just entering up on it's period of regular production and it is doubtful if the mining and smelt- ing work will even then be tried out 10 the extent that will warrant the company in feeling that ii is working with the smoothness which is ulti
 mately hoped for.
 Then following this beginning oi learning powers, will come a long pc riod during which the surplus demand ed by the conservative Calumet &
 Arizona management will be built up
 It is only necessary to recall the policy adopted in the case of the Calumet & Arizona property itself, to form a fair Fly conclusive notion as to what the Lake Superior & Pittsburg will do ir the way of providing surplus and op
 erating funds.
 While in all likelihood it will not be so long as that, three years from now
 is a much closer guess of the time when the Lake Superior & Pittsburs will begin its dividends than six
 months. The predicting of dividends at such an early period for property
 of this kind is not only hurtful to th'
 interests of the stockholders. in creat ing among them unwarranted expecta tions, but it shoulders upon the man agement load of undue annoyance
 particularly when tt comes from sources that are accepted as being well
 informed. The only possible excuse fol
 such a prediction is an effervesceni