Western liberal. (Lordsburg, N.M.) 1887-1919, 1906-02-09

"2N"N a0NAW TX Nn1NA0NW 49,
the stock Of the Greene consolidated;
Two years ago, when the stock was
selling somewhat lower than at pres
ent, my position on Greene was bear.
ish. l had information from thoroughly
credltable sources that the compauy's
plant was Improperly constructed and
10 many ways unsuited to handle its
ore economically and also that its mlu-
lug was being done by the most ex.
peusive system, Mining men OF ex-
%cellent judgment told me that the
company must spend az least 50, 000.-
900 %remOdeling and reconstructiug It's
plant before IL would be 10 shape TO
properly pay dividends. It now seems
that the position 1 took at that time
was justified In every particular but
one-the company bad valuable ore In
such remarkable abundance that it
was able to produce $4,000, 900 pounds
OF copper aud pay SPOTS, 900 10 div.
ldends annually Notwithstanding its
defective plant aud wasteful methods
OF operating. This was later reflected
ia the substantial advance 10 the price
of the stock. The alterations, i'm.
prOvements and extensions which the
management now proposes to make
with new capital, were begun months
ago. 1t was planned TO make them
gradually aud pay for them out Of
earnings. This could undoubtedly
have been done; but financial wisdom
prevailed 10 the meetings of the Greene
company's directors, aud IL was decid.
ed that millions OF dollars could be
saved for stockholders by prompt ac-
ton. With its present plant and sys-
tenn Of handling ore, supplies, ETC.,
Greene's copper is made at a cost CT
III cents per pound. 1t is believed
that the improved plant and new sys-
tenn Of mining will enable the COM
pany to reduce the cost OF its copper
fully 2 cents per pound, making a net
saving Of 81, 2OO,0 900 annually on its
present volume of production. This
means that the new investment, II
properly used, will earn from the start
at least 80 per cent through increased
economies. In addition to the reduc.
ton in costs, the proposed improve.
meuts will raise the company's annual
production to fully S0,000,0 900 pounds
Of copper. A hasty analysis makes it
apparent that In exchange for a 15i
per cent increase in capital the Greene
company will secure a III per cent re-
duction in costs, a SO per cent increase
10 production, and-on an 1S-cent COP
per marke-a &c per cent increase in
net earnings. That such prospective
advantages justify the proposed cap
ital expansion, many times over, goes
without saying. Stockholders have
reason to congratulate themselves
that the management Of their com
pany has acted at such a propltious
time. The Greene company undoub-
tedly owns one Of the worlds greatest
copper deposits. Its property is ap-
proximately Z miles long by 3 miles
wide. Two Of its greatest mines are 5
or 6 miles apart, and biologists believe
that the entire intervening area is
u ,ralized. The ores reach to the
ST 20 In tremendous bodies, making
condlClt rs that are ideal for steam
shovel work. 1t is believed that hun.
dreds Of thousands OF tons of its ores
can be mined by the proposed new
method at a cost Of 25 to 40 cents per
ton, compared with a present cost OF
$3.50 TO SO. so per too. The prospectus
that the present dividend payments
on Greene stock will be continued un.
til the company is 10 shape to increase
the rate. The future outlook for the
company is so much brighter than it
eve has been before that the long
delayed ad vance 10 the price OF
Greene stock should soon be realized.