The Goldfield news. [volume] (Goldfield, Nev.) 1904-1911, 1907-10-05
GOLDFIELD WILL BENEFIT MOST

CONSOLIDATED gave evidence this past week that the fluctuations of the
stock from time to time RAJ not due to the dividend policy Of the man
der $40 was attributed Ito the fact, according to unfriendly critics, that
the management raj unwilling 10 part with the money necessary for a
dividend as it was needed in the banking establishment owned by the manage
mento # Consolidated; hence the policy of non-acton in that particular. Another
reason given for the low price Of the security wa the menace # the option given
to Baruch, and the uncertainty Of where the control of the stock rested.
Now that q dividend has been declared and the Baruch option Cancelled, it is
vas at tho bottom Of tn, stock movement. The action of the stock seems to be
entirely independent Of these reasons.
The Consolidated management wisely postponed paying dividends until some
disposition was made II the Baruch option. II wasn lot known exactly from what
thu million dollars would be drawn for the payment of the loan contracted
and it would not be known, naturally, until Mr.. Baruch had shown his hand;
there was money in the treasury, enough to pay the loan without the exercise of
toe and leave the treasury sound but with the loan wiped out through stock sales
under the option, the surplus money in the treasury would be available for divi
dends
To be sure,t the dividend vas not 50 large as the public generally had been
sons for believing the dividend would be larger than 10 cents. That it would be
larger was purely a market fiction. Under the final windup Of the Baruch op
prudent business management, to have declared a larger dividend. especially in
view of the policy enunciated Of regular 10 cent dividends every so days. OF
course. with a cash treasury of upwards of s2OO0OOo. a larger dividend might
have been paid, but it would lot hav been In consonance with good business
fdence and strengthened the stock among the thinking part of the business and
investing public The declaration # the company insures at least 10 cents per
dividends II AN b e taken frg granted that the Consolidated means in the pay
Of dividends, to keep pace with the mines increasing production, at the
same time guarding against unforeseen contingencies.
There are several mooted points made clear in the settlement of the Baruch
option. One of these is as % the control Of the Consolidated. The control of
this great Goldhdd property fortunately still lies in Goldheld. OF the 100000
issued. 100000 shares are owned by Winghed and Nixon and their imme
field hands, probably amounting to at least 10000 more. This gives ooldfeld
a cear control Of its favorite NINE
And further; it is q source Of satisfaction TO know hat in the payment of
the forthcoming dividend, most of the money distributed will find Judgment again
in aoldfed. That the Consolidated management refrained from paying a dNi
dend because II the lossi in cash that would result to the Wingfed and Nixon
bank. as charged is thus refuted. They will still have the great bulk of the dvt
dend money in their W vaults; and, it is to be hoped, for the more general use
of the business community.