Tonopah bonanza. [volume] (Butler City [i.e. Butler], Nev.) 1901-1909, 1905-08-19

Of the dividend which was that day
announced, and then consented only
upon the condition that everything
relating to future dividends should
be eliminated from the motion. On
Mr.. Bartlett's suggestion the divi-
dend was by resolution, made pay
able on August LIST.
We favored the announcement
then by the board that quarterly di-
vidends in the sum of 100000
would be thereafter paid until the
further order of the board, and urg-
ed it as strenuously as we could, and
we still firmly believe that such ac-
ton should have then been taken.
We took this position upon the
formal report that day made by Mr..
Gillies to the board, which was to
the effect that he had made a careful
examination of the quantity and
quality of the ores already developed,
and that leaving out of considera-
ton all of the milling ore, and ex-
Guiding all of the oxidized ores and
eliminating also everything below
the 500 level in the mine, thus en-
bracing in his estimate the sulphide
shipping ores only, there vas upon
the most conservative estimate, at
least 10000 tons of such ore which
would net the company $45 per ton.
(This you will see would make an
aggregate value Of $2,700,000, or
the equivalent of quarterly dividends
of 100000 each for more than six
years and a half. At that time ore of
fine quality had been encountered on
the 765 or bottom level of the mine,
which has since proven to be, accord
ing to the statement of Mr.. Gillies,
the most important development
ever made in the mine.) Mr.. Gillies
also stated that the ore reserves We're
such that the company could pay not
only $500. 600, but |$150,000 divi-
dends quarterly, and yet carry on all
work that a wise and prudent man
agement would require.
AT the Reno meeting Mr.. Knox,
when asked the question whether or
not he had not stated that the esti-
mate of tonnage and values made by
Mr.. Gillies as above set forth was
over conservative, admitted that he
had so stated to Mr.. Dickson and
that he still thought so. Do you not
think that with such ore reserves in
the mine it was the duty of the board
OF directors, having in view the vel
fare and interests of the stockhold-
ers of the company, to have then an
nounced that quarterly dividends
would be thereafter declared Can
you think of any good reason in the
light of these facts why your inter-
ests and those of the other stockhold-
ers should not have been thus sub
served by the beard?
One reason advanced by Mr.. Knox
for opposing any announcement by
the board as to future dividends was
that the company might at some time
in the future be required to build a
mill at a cost of 500, 600, for the
treatment of it's low grade ores.
Whereupon his attention was called
to the fact that there were 1885, 600
shares of the capital stock in the
treasury, (this you will observe has
a value of $495, 600 at SO per share)
and that the treasury stock was de-
signed to meet any expense of that
kind. He then offered as a further
reason for opposing quarterly divi-
dends that an accident might hap
pen and a number of men might be
killed and the company compelled to
pay damages,
His real reason for opposing quart
terly dividends he did not give, viz:
Ia desire on his part to have the
selling price of the shares depreci-
ate, in order that he and some others
with whom he was friendly could ac-
quire cheap stock.
Our reasons for making this last
statement are that while in this city
in June, Mr.. Knox made the volun-
tary statement to prominent bust
ness men in this city that Montana
would not pay any dividends for
months to come. And long prior Ia
that time Mr.. Knox approached a
prominent citizen of this city with
the suggestion that If the stock OF
the Montana could be driven down tc
$1.25 per share, there would be com
pensatioD therefor to the gentleman
whom he approached.
The party to whom this sugges-
ton was made was in a position
which would have enabled him, had
he been capable of lending himself
to such a scheme, to have given very
influential assistance to the presi-
dent of u company in an effort to
so manipulate the shares in the
market. This is the man who covert
~ seeks to impugn the good faith
and integrity of purpose of at least
four directors in their dealings with
this company; and proclaims himself
the exemplar Of safe and ~conserva-
tive management.
Why should the president, or a
director of this company-the CON