Bisbee daily review., 1904-11-22


 A circular issued by Hayden, Stone < Co. saS..
 We have had the following prepared aur ns and on account of the great activity throughout the Lake Superior district in these stocks during the past tvo years We believe that the follow ZEE will be of interest as Boston has Taken very little interest 10 date in ahese properties.
 Lake Superior people have been in Sesting and speculating hn western ssining stocks for many years and sheir aggregate holdings in western camps four years ago amounted to a UcTy respectable figure even though =Eost of the shares bought turned out In be gold bricks. It was not, how ssEer. until the opening of the Calumet X Arizona mines, at Bisbee. in the Warren district of Cochise county, Ari- =una, that the Lake people became a EEzny important factor in western snines. or, for that matter, in mining in any field except their own. The Lake Superior & Western De relopment company. the parent of the Cai'ime & Arizona. and the forerun- zser of all the other Michigan-Arizona copper m.mng and development com ssnies, was organized in March. 1899, inst after the continuation of the big copper boom of 1S9S-39 The capitaliza- ssc1 was but s200,000 in 10000 shares uf S10 par, and not all of this was called. The company took a bond and lease, at the pr;ce of $500 UUU on fshe Irish May and adjoining claims, al lying next to the property of the Copper Queen mine. controlled by Phelps. Dodge & Co, one of the big mines of the world, and. until the ie ssaopment of the Calumet S Arizona She only producer of the Warren dis .rct
 The Lake Superior plan of financ Eng 3 copper company, or. rather, the Eos On plan of financing a Lake Su Epestor copper company, is to pay fer zhs lands outright and place the entire stock Issue. or as much of 1t as may De required to furnish a working func sof several thousand dollars, before ths formal organization of the corporation and delivery of stock certificates Promoters profits are included in tn. pr1ce of the lands turned over to tn company, and the new corporation starts life with clear title to all it aands and large cash surplus. Tn western plan of promotion is. usually =D take a bond and lease upon certail fznds, organize company with one t Ege mil3on shares, par value s1, oray down the promoters profits in stoc zzzd sch treasury stock to provide flo r<sse opments.
 This western plan has several SCI Fcas drawbacks, among which are lac -8f title 10 lands, which may be an Frequently are lost because of il ability to make the bond payments a shey come due; lack of aiqeuat working capital and difficulty in secu Ing same by sale of stock, which con zonly is pedcled out in small lots b fiscal agents, not always thorough responsible and who exact commi ss5ons on sales of stock running fir, z5 to 50 per cent; and, last, but n zzzst. the strong likelihood that som s7E 1he promoters stock, which repr come on the market selling for worl Eng expenses, or. as frequently ha rens. to stop it's sale entirely. TT xeatures of western minng promotio herein pointed out are responsible ft zhe failure of many companies owniI valuable properties. No account taken of the numerous fraudulel companies organized solely to SC shares. Until western mining COT xanies are orgaized upon more bu mess ike basis, none but the demo zzIated successes can be said to DO zxss anything like a definite mark rsa1ue.
 In the case of the Lake Superior Arizona Mining company. and the oi er later companies organized und the same auspices. the plan of prom zsDn was combination of the Bost' -.zDd western systems. In each case Yrs1iminary development compar xith capitalization of $20G,000 Szso.o00 oaly was organized to take z,ond and lease upon the lands desire when mineral values sufficient
 make a mine had been developed, regular mining company with ca Htai.zation of s2.500,o0o in 25o.o