Fergus County argus. [volume] (Lewistown, Mont.) 1886-1946, 1906-06-08
O AMONG THE MINERS
LATEST NEWS FROM THE TIMING CAMPS Of
10Y II FERGUS COUNTY AND elsewhere. = = =
Discussing mining dividends,

Discussing mining dividends, the
Mining World says:
For twenty metal mines in the Unit
ed States to pay $4,O23,738 in dividends
in one month May and to report to
the Mining World grand total of
$S4,613,344 since incorporation is in
disputable evidence of the prosperity
which prevails in the mineral industry.
When only three American copper
companies, the Amalgamated, United
and Quincy, can in five months pay
more dividends to their shareholders
than the total value of years output
of copper in ten foreign countries, can
there be any wonder why copper
shares are SO attractive to the invest
ing public? During May these three
copper companies distributed $3,42O.-
03S, making a total of $54,846,434 to
date; IL gold, silver, and lead COM
panies declared $780, for the month,
or $30,477,11O in all, while five zinc
properties divided $321,0OO in May, or
$9,289,8OO since their incorporation
A popularity about these dividend pay
ers is that the majority of them make
monthly or quarterly declarations. At
one time it was the custom to declare
dividends frequently, but with an in
crease in the number of shareholders
and consequent extra bookkeeping sug-
gested revision of this policy. The
result is that a number of the old-time
dividend payers have changed from a
monthly to quarterly basis, while
others have heightened the period of
payment still further In many re-
spects it seems a better managerial
policy to accumulate the dividends
and when a certain amount has been
reached to divide it SO as to leave a
good surplus on hand and at the same
time give the shareholder a satisfac-
tory interest on his investment.
The old principal method of "bleed.
ing mine by compelling the man.
ager to handle at the maximum capac-
ity only such ore as will yield imme-
diately "big money" for impatient and
often inexperienced stockholders, is
gradually being superseded by a more
sane policy. And it should be so. To
pay dividends from ore that assays
only few dollars to the ton requires
technical skill and good management:
to pick the eyes out of mine for tenn
porary gain is, to say the least, prod
igal asininity. Working a mine to
benefit investors and make an equit.
able return on the capitalization is the
principle of honesty, while welding a
pick to ignite the flint of speculation
in the stock market is practice that
should be condemned. Too often the
small investor suffers from the venom
of dividends paid him which were new
er earned by working the mine. In
reality these dividends are "commis.
sions" or discounts" on stock sold by
the INSCRIPTIONS mining company pro-
mOters. Beware of the silver tOngued
orator who offers to sell you mining
stock on the installment plan, and
suavely gives you knockout drops
in the form of guaranteed monthly
dividends" The "dividends' you re-
ceive are virtually interest on the
money loaned" to the "philanthropic"
company promoter, and the balance,
less expenses, is, it may surprise you
to learn, often used in an attempt to
suspend justice. From four to six
months is usually the period of guar
anteed monthly dividends; after this
stock selling invariably diminishes and
Expenses" absorb the dividends. -
The asset of the unfortunate investor
is nicely engraved stock certificate
with gold seal. which, it is regret
table to remark, he will often use as
a document to attest the gambling ma.
ture of mining.
It is, however. gratifying to learn
that the investing public today has bet
ter opportunity to ferret out the wild
cat" companies than was the case be
fore some of the leading mining states
tiok the initiative by enacting suitable
laws to punish the perpetrators of a
crime which so often deprives widows
and orphans of their livelihood.
Mining operations throughout the
Jerome mining district are progress
ing steadily, with prospects for in
creased activity during the summer
season At tho IInite4l Verde nrnnerf Y