The silver state news. [volume] (Winnemucca, Nev.) 1907-1909, 1907-11-18

The results of a careful investiga-
ton into the economic conditions that
affect the earnings of American mines
and metallurgical works. by the Min
ing World. suggest that during the
closing months of the current year
dividends generally will be cut as
much as so per cent from the previous
high level. The primary reason for
this pairing down of profits is the gen
eral slump in metal prices, due to the
smaller consumption, notably of cop
per, which in turn has necessitated
the curtailment of production. in some
cases from 40 to go per cent. Pro
ducers and frst-hand sellers of the
commercial metals. who had accumu-
lated heavy stocks during the recent
cessation of demand. are gradually
cleaning up at a sacrifice from prev
ious high prices. Unfortunately dear
money and wild. disastrous specula-
ton. with a consequent bankruptcy
for certain banking and trust interests
in the East. have combined to tenn
porarily shake confidence in mining
and similar enterprises. Timely inter
v~ention of the secretary of the trea-
sury at Washington and %pecuniary
assistance from the New York clear
ing house, j. P. Morgan and John
D.. Rockefeller. has undoubtedly
stemmed the tidal wave which might
have resulted in hare times through
out the country. AS it is. the fnan-
cial atmosphere in the East, from
whence ome a large part of the cap
ital used in the mining industry, is
clearing. We hope that the "thrash-
ing' given to some of the stock gam
blers who have been responsible for
the recent panic in Wall street will be
a lesson to others who know not the
difference between a dollar honestly
earned in mining and a fortune won
by questionable means in stock spec.
u~lation.
Enough money ear be made by the
working mines to satisfy anyone,
ever the rapacious stock gambler who
80 often victimizes the investing pub
lie.
A careful compilation made by the
Mining World shows that Ia mines
and metallurgical works in the United
States, having an outstanding capital
ization of $604, 231 ,265, declared div
idends for the ten months ending with
October amounting to the large total
Of SIS, 814. 904. Since their organiza
ton these ia concerns have paid
their thousands Of shareholders the
handsome sum Of $537 500 .546, which
IS equivalent to over so per cent of
their issued share capital of 1904.
23l,265. A large part of these div
dends has been collected in recent
wears by securities holding corpora
lions. such as the A~malgamated Cop
per company, the American SHELTERS
Securities company, and others. Six
of these securities holding concerns,
having a combined issued capitaliza-
ton of $242, 726, 900, have declared
this year $14,2 s ,012 in dividends.
making the total since organization
$6s. 960, 581. The Amalgamated Cop
per company is at the head of the list,
having paid so far this year divi-
dends Of 9,2O1, 276, making s5261s.
5O4 since incorporating, on an issued
share-capital which has been gradual
ly increased from $75, 000. 900 to $153,.
Ss7. 900. For the last three. quarters
of the present year, the A~malgamated
dividend was at the rate of 8 per cent
(on par,$100) per annum, but owing
to the heavy slump in the price of
copper in October, the quarterly div
Y 10onQ mas Dctu cut II nail hohihS
the annual rate now 4 per cent. Ma
turally there has been frantic specu
~lation in the stock, with the result
that the current quotation is less than
one-half what it was at the opening
of the year. Amalgamated obtains its
revenue largely as a holder of stock
in the Anaconda, Boston and Mon
tana, Parrot, and several other valu-
able properties, all of which, by the
way. viii pay smaller dividends for
the last quarter Of this year
In addition to the enormous profits
distributed to shareholders in mines
and metallurgical works, large sums
are paid as commissions to brokers
who market the various products. For
instance, the United Metals Selling
company, organized in January, 1900,
with a capitalization of $5,o0o,oo
: and which markets the products of
the A~malgamated Copper company,
& and Others, on commission, has declar-
3 ed dividends so far this year OF 81
1875, 900, or 42h per cent, making the
grand total to date of $5,625,000, or
Z 1l2h per cent. There are a number
y Of other metal selling agencies which
enioy a substantial revenue from
mines and metallurgical works, but
the profits divided are never pub
3 lished.
To be sure machinery manufacturer
< and Others doing business with the
6 mining industry are sharing in the
& large profits won by the economic
8 development of our great mineral re
sources. Labor also is well paid for a
. shorter number of hours in a day
8 work than was the custom not many
= years ago. Everywhere. and in prac'
tically every important branch of in
~ dustrial activity, do we see the reioc-
8 ton of wealth obtained from oul
. mines. No wonder there is apprehen
8 sion felt whenever the securities mar
kets react 90 as to suggest a retrench
:. ment in the primary industries. Tn