Deseret evening news. [volume] (Great Salt Lake City [Utah]) 1867-1920, 1906-09-18
). OBERNDORFER,
stock Broker.
Tel Bell 7s2. lsl s. Main 81
SELLING TREASURY STOCK.
Cheap shares Are Not Always Con-
ducl,c to Good Results.

Editor Higgins OF the Minig Review
has placed himself on record as being
against the sale of stock In new COM
panies for few cents a share, provided
OF course the property being promoted
contains merit. Properties which have
no merit 20 them are not worth any
Thing. but many good ones have failed
TO become producing mines for want OF
capital after the treasury stock has
been exhausted az a cheap price. Here
Is what Mr. Higgins says.
1T Is not question of what you
pay as much as II T. what viii ] get?
m, treasury stock 10 some mining
companies Is well worth s. share.
whsle other stock is not worth more
than one cent ln one case the s.
stock Is well worth The money, while
the one-cent stock Is not worth keep
ing. In the case OF the ii-st0ck the
company. II is property Is " merit and
has an apparent value Of. say S5o00,000
the company. by the sale OF its treasury
stock, win have ample means boz It's
treasury for is development and COM
plete equipment. The returns from the
sale OF one-cent stock would not drive
a i00-foot tunnel, or sink a J0-foot
shaft and. no matter how valuable and
promising the property may De- the
company viii never possess means for
rs development unless the stock Us as
segsable. or money Us raised by means
Of loans or mortgages
No reasonable man can expect q re-
alze a profit by the purchase of ONE
cent treasury stock, u b. as n be-
threw his money away and he had
much better pay 70 cents "a share for
such stock. knowing that the money
thus raised would be OF material bcac-
no TO he company than 60 accept one
cent stock as a gifi.
The object IN selling treasury stock
IN a mining company is 20 raise means
Tor mine development and equipment
and. Il the company can start out with
$4,000 or $4,000 On The treasury the In
weston stands a much better chance OF
realizing handsome profits from his
venture than he would II the company
had but 5000 ar $4,000 90 70 on. for
a mine cannot be made by the expen-
diture OF so small an amount " money
In many cases where mining COM
pany has gigantic holdings OF ac-
knowledgcd merit ANA value, s. a share
Is a modest sum 10 ask FOR its treasury
stock. and such stock n an goes well
should soon be selling al so a share.
The cent-a-share bait j. Intended Tor
suckers. for poor people who might De
able TO squeeze So or so from their
ecanty earnings and savings. but no
Keen. successful business man with
5000 or $4,000 10 invest, would nibble
az ID for a moment There Is hardly
anything that is good because o. Is
flaar D, the contrary 30 T. generally
dear al any price The great successes
that have been made IN mining stock
ventures have not been made through
the me iium Of one or tWo-ceni stocks
and II Is the general rule that the
higher the price. IN a thoroughly good
and reliable company, the greater the
returns have been.
Companies with small but valuable
holding cannot incorporate FOR q mil.
lion and ask 81 share Tor their treas
ury stock. but. as n rule. they cannot
meet with ultimate success unless they
get al least 20 or p cents Tor thelr
Treasury shares In any case the
price asked should he on a ratio accord
ing 90 The size and value Of their hold
inss and the ratio Of a one-cent stock
would b. TOO small for serious consid-
Grafton.
Tn the case OF the ts-a-sharc query
n our corresponGont ~ satisfied a. 10
the reliability ahllhy and standing
az the company. and The prospective and
actual value Of iis properiy. De- had
much re;ior invest biz money Win
Them than 10 take a ever in some 81 The
cheap stocks which nrc nov flooding
the market.