Bisbee daily review., 1904-05-07
Michigan Miners
 AND THEIR Advent In Arizona
HOW THEY BECAME INTERESTED IN THE CALUMET
 & ARIZONA.
The Michigan Bonanza People and Origin of Development companies- Same Men Are at the Head of All the Bonanza Group-one of the Worlds Great Copper Mines

[
 obtained at home, in the case of ex-
 ceptionally prosperous mining dis
 tricts. but it is rarely the case that
 money by the millions of dollars is furnished by one mining iel- to open
 mines in another district more than two thousand miles distant This is the case, however, in the Bisbee field
 of Arizona, where the bulk of the capital for opening new copper prop critics is being furnished by the peo- pie of the Lake Superior copper dis trict.
 For nearly twenty years the Copper Queen was the only mine in Bisbee. There was no other market for mining claims. and the Queen bought nothing | that was not both good and cheap. Martin Costello, a saloon-keeper who had made money in the boom days at Tombstone. and who stuck to that
 camp in its decline owned, among other mining property. several claims near the Copper Queen in Bisbee. These he valued at half million dol ! lars, and was considered as a man of remarkably poor judgment for putting such price on undeveloped lands. From the disparaging remarks ire lquenuy cast upon his business capa- city for this weakness. Costello grad ually became touchy upon the subject. i Prospective customers quit as soon las the price was named, and when 1 Capt. Hoatson, of the Calumet & 1E 1 looked over the claims, admitted that the price of half a million was a fair one. Costello immediately warmed to the only man who had ever agreed with him on the point. develop ment company was organized at Calu- met Michigan, in March 1899. and took the Costello claims under bond and lease. at the price of s500,000 being given liberal terms as to time and payment. With a capital of s200. .000 the Michigan company started full sized working shaft on the Irish Mag claim, upon a steep hillside. Sinking took time, and cost money and as the shaft went down hundreds of feet, without even a suspicion of ore. the spirits of the shareholders sunk. All but few of the most courageous had the blues. The timid talked of throw ing up the sponge, but the work was in the hands of Thos. F. Cole. presi- dent of the Oliver Iron Mining com 2any., which is the mining end of the great steel trust, and he has always been man of bulldog pertinacity. The shaft kept going down, in barren limestone. until one day at a depth of nearly $50 feet was reached, crosscuts
 were started. Large ore bodies of wonderful richness were opened, and a full-dedged mining company was or ganized to take over and pay for the claims, open the mine and build a smelter. In one day cash subscrip- tions of s1 ,040,0 ,0G0 were received at Calumet. and mining men and finan- ciers marveled at the wealth and speculative courage of the people of the Lake Superior copper district. The stock that was subscribed for at s10 sold at s20 the next day. and eventu- ally touched s200 per share, and now ranges from $100 to s125 per share The company was called the Calumet & Arizona. and despite its age of but 8 trifie over two years, is already enc of the largest copper producers of the globe
 The success of the first venture of Lake Superior mining capital in the Warren field speedily led to the for nation of other development comi panies to exploit various other groups of claims in the vicinity of the Calu- met & Arizona. The first of these were formed by the same people Tespon- sible for the initial success, but 3 few months later the craze became gener- al, and a Lumber of ambitious pro- moters entered the field. In every case, except that of the Marquette & Arizona, which is organized as full fieged mining company, these hew cor porations were formed as development companies, following more or less closely the plan of organization and growth pursued by the Calumet & Arizona The plan usually followed has been to form a development com pany with a capitalization of 50009 shares, par value s10, of which half or less is paid in, he balance being subject to call. The plan is 10 fCr1 regular mining companies later in case a mine is found, allowing eacn share of development stock two or three shares of mining stock, and selling the balance of 50.000 or 100,Oo0 shares to furnish working capital and funds for the final payment of the property. It must be understood that in nearly all cases the property ping exploited is held under bond and lease While tho omounfc of s1ich hOnds vary from $100, GOO to s675,000 in the cases Of various companies. the usual term is eighteen months, and the first pay ment is usually 10 or 15 per cent, with
 further small payments in six and
 twelve months. and the final and larg-
 est payment of 60 to 75 per cent of the
 total bonds due at expiration, in IS
 months. In the case of the Calumet
 & Arizona the capitalization is 250,0O0
 shares. par value $1o of which 100000