Gilpin observer., 1907-09-19
Mining Shows Great Increase.

Captain James T. Smith in Denver
News9
The disturbed condition of financial
affairs at home and abroad has thus
far had but small effect upon dividends
from mines and metallurgical enter
prises. The American Smelling G Re-
fining Company, according to its Of
ficial statement, is doing better than
ever before. 1t has declared a quar-
terly dividend Of $1,OO0,00O upon COM
mon shares, payable October 18th, and
a dividend of $S75,000 upon the pre-
ferred shares. Hence the scarcity OF
money on the one hand and declines
In the quotations for copper, lead and
spelter on the other do not seen. to
upset its calculations. Nor will the
elements mentioned affect such Colo
RADIO dividend payers as the Old Town
Mines in Gilpin, the Yak tunnel at
Leadville, the Portland and Vindicator
at Cripple Creek, the Silver Lake
group and the Gold King of Silverton,
the Tomboy, Liberty Bell and Snug
gler at Telluride, or the famous Camp
Bird at Ouray. In these enterprises
the element of excessive stock has no
place-there Is no moisture" that a
letup in prosperity is certain to
squeeze out.
Up to the first Of the month, accord
ing to a careful compilation by the
Mining World of Chicago, 109 mining
and metallurgical enterprises in Amer
lea proper have paid dividends equal
to $64. .967, ,181. The total paid by these
concerns since date OF organization
reaches $519. .191 1903 on an issued cap
ital of $555, ,114,517. 1t is easy to see
from the totals presented that mines
in the dividend list are seldom en-
barassed by excessive shares and that
unusual profits, together with recent
improvements in methods have en-
abled metallurgical concerns to make
good" on their liberal basis of CAPT
talization which is nowhere restricted
by either state or federal legislation,
as Is the case in Connecticut In the
matter Of railroads.
or the 100 companies in the dividend
class the gold, silver, copper, lead,
zinc and quicksilver producers claim
the special merit of having paid in
dividends 124 per cent. upon the par
value of their capitalization, the latter
being stated at $3S3,259,467. The Port
land and Vindicator are Colorado's
specimens in the "velvet" class, the
former having paid $7.507 .0S0 on a
modest capitalization of $4,000. 900, and
the latter 81 $50 900 ON capitalization
of $1.500.00O.
Besides the direct profits from min
ing and metallurgy six holding compa-
MES, the outgrowth of the mining in
dustry, capitalized at $242, ,726, 900,
have paid dividends so far this year
equal to 1891 .250, making $6S, ,103,-
S19 in the past seven years. The
United Metals Selling Company, an
other outgrowth at the bullion end, is
capitalized at $5,O00O00 and has paid
this year 27.5 per cent. or $1,375 900 in
dividends. Since the company was or
ganized in January. 1900, by the Gug-
genheims on this side and the Roths
childs on the other, 1t has disbursed
profits OF 97.5 per cent. or s4,S75, 900.
The furniture in the New York and
London ofiices-its sole investment-is
yet In good order.
In the above computations no allow
ance Is made for close corporations.
leasing companies or leasers, mine ma
chinery manufacturers. or transporta-
ton companies in mine districts
proper, which depend upon mining for
their earnings and profits. In the
Cripple Creek and Leadville camps 1t
is usual to calculate the profits of leas-
ers and close companies as equal to
thirty-three per cent of the known div
idends. This rule is becoming more
and more general from year to year,
the leasing system being a source of
profit where company work has failed.
In the dispatches the other day it
was noted that the Calumet and Hecla,
. Michigan copper group, had reduced
Its quarterly dividend from $40 to SIS
per share. Yet the holders of the
Ahares have no cause to complain, as
this company has already paid out in
1907, without counting the SIS declara-
tion. the very liberal sum of $4,000, 900.
equivalent to 160 per cent on the par
value of the stock
The total capitalization of the Calu-
met and Hecla-which is not in Ne
vada-reads $2,500,000. Dividends
paid to date foot up $103, $50 900. or A.
1874 per cent. upon the face valuation
OF the stock.
Anyway you look at the figures the
dividends paid In mining, metallurgy
and related enterprises thus far in 1907
are greater than in 1906 or any previ-
GUS year.
Colorado's leading tonnage producer,
Leadville. camp. shipped $4,000 tons of
ore in the month Of August. Mine op-
orators now report that the labor sup
ply Is fair and there is no lack of a
market for all the ore that can be
lifted In the present fine weather. The
demand for silicious ores is again
brisk. owing to recent enlargement in
capacity at the smelters.
Silverton camp. which showed heavy
gains in output in June, July and Aug
ust, compared with the summer season
OF 1906. is now complaining of short
age Of labor. There is no disagreement
between employer and employees, but
at this season OF the year many OF the
miners migrate to the warmer camps
in Arizona and Mexico, for the winter