Fergus County Democrat., 1907-07-09
MINING
Investors Profits.

cessful investors in railroad and like
'gilt edged" securities at the readi-
ness of the general public to put
their savings in mining shares, not
withstanding the reputation which ir-
responsible company promoters have
given to mining as gamble
Certainly there is more than the
mere declaration of enthusiastic brok-
ers that mining shares have, in many
instances, greater value than some
railroad and industrial securities
which inspires the investor in mining
shares with the confidence that he
will receive higher interest on his
money. What is hidden behind the
veil of speculation that suggests an
equitable return on the large capital
ization of some of the new gold and
copper mining companies in Nevada,
California, Arizona, Montana, Utah
and other sections of the United
States and in Alaska,
A careful estimate by reliable en-
gineers of the ore reserves in each of
these mines and the economic recov-
cry Of the metals, create factors of
great Importance in calculating the
future profits. But there is something
else that usually influences the
opinion Of possible investors in a
particular mining stock, and this is
the comparison of dividends that
have been paid by other properties.
True, no two mines in the same To-
cality have ever shown the same earn
ing power; the reason is that the
conditions which influence mining and
ore treatment are different in each
property. And it is unfair to COM
pare new, undeveloped gold pros
pect with the great Alaska Treadwell
and Homestake mine in the Black
Hills-two properties that are able
to win substantial dividends from
very low grade ore after years of
costly development and experiment.
Nor does it seem just to enthuse a
prospective investor in new copper
stock by figuring on a repetition Of
the extraordinary career of the ia
maus Calumet & Hecla mine.
1t is admissible, however-and we
know this by reason of the fact that
our contemporaries, as well as stock
brokers, made frequent use of the
dividend table published in the Min
ing World-to inform the public how
profitable is mining. Such informa-
ton, compiled with much trouble
and expense, must explain the enthu-
siasm that is usually shown by an
investor in mining shares. Were it
not that company promoters are in
possession of such authoritative sta
tistical daat we venture to say COM
paratively few mines would be float
ed successfully. Unfortunately, this
practice is sometimes abused by ir-
responsible fiscal agents, with the re-
suit that the investors only legacy is
a nicely engraved stock certificate
With proper care in selecting
mining stock-by investigating the
claims of the promoter-it will be
learned whether the stock is ''spec-
ulation" or an investment" Reput-
able brokers will tell in which class
their stocks are, so the intelligent
purchaser may guage his risk accord
ingly.
For the first half of the current
year the dividend payments reported
to the Mining World by SS gold, sill
yer, lead, copper, zinc and quicksilver
mines in the United States, including
Alaska territory, having an outstand-
ing capitalization of $337,755727,
amounted to the huge sun of $685.
56O,8l2, making a total since incorpor-
alton of $44O, ,6O9,o73. In addition to
these dividends there have been paid
by six metallurgical works for the
half year $1O,29O,8S5, making total
of $57,627,595 on their issped share
capital of $l6O,74O050. One company
not included in the above, which
derives its profits largely from the
sale of metals, paid dividend this
year OF $l,375,O0O, or u IL per cent
on its $5,0OOOO capitalization, bringing
the total profits since incorporation in
January, 1900, to $4,875,O 900, or 81 IL
per cent
Adding together the dividends paid
by the 81 mining and metallurgical
companies reporting, which have an
issued capitalization of $49S, 4o5,777,
we have distribution of profits for
the first half this year of $48,851 ,6o7,
making the total since incorporation
$4o8,237, ,568 Thus it will be seen that
the dividends have almost repaid the
total issued capitalization. These div
idends, by the way, do not include
the declarations made by sharehold-
ing concerns like the Amalgamated
Copper Co., the American Smelters
Securities Co. and the Copper Range
Consolidated Co.; these with two 9TH
ers have announced dividends this
year of $9,l94,2o2, making total of
$63lO6.011 since incarceration on an