Bisbee daily review., 1907-06-02
AT
 VARIANCE
(Continued from Page 9.)

T sJ l come manifest in nearly all lines of industry
 It has sometimes happened in the past that extreme declines in security prices have come well in advance of business retrenchment, and that when the depression has actually become apparent on all sides, security prices have advanced Stocks declined be- cause inability to obtain money through the usual channels forced the l sale of securities to get cash. When business depression n1ateranzes money is always abundant and cheap, and larger profits can be made by buy ing and holding the best stocks and bonds than in most individual busi- ness enterprises.
 In this connection, investors should bear in mind that there is one group of corporations which are not calling for new money They are disbursing l dividends with a lavish hand. and their treasuries are swelling to the bursting point. I refer to the copper producing companies. They are ex- periencing no embarrassment, except one of riches. Many of them are pay ing dividends which make their stocks yield 10 per cent to IS per cent on current market prices. Some of them could readily pay 50 per cent to 100 per cent more than they are now, without drawing upon their surplus 1 reserves. These companies, from Calumet & Hecla and Amalgamated down to Shannon and Michigan, can buy new properties and build new | mills and smelters without selling ad- ditional bonds or stocks or calling l assessments. They are in a class by | themselves, and their stocks are bet ter investments at current market prices than can be found elsewhere in any market No matter if the price of copper does decline to 20 cents or to 15 cents-and the latter is extreme ly improbable-the principal copper producing companies can continue to earn per cent to 15 per cent on the prices at which their stocks may now be bought.
 The best investments in the copper share list are, in my opinion, Copper Range, Utah Consolidated, Amalgam- 1 ated, Anaconda, Calumet & Arizona, North Butte, Quincy, Wolverine, Granby and Greene Cananea.
 Calumet & Arizona has declared a 1 regular quarterly dividend of 5 per share. A like amount was disbursed three months ago. It compares with | S4 per share paid six months ago, $3.50 distributed nine months ago, and s2.50 paid one year ago. This l dividend will make a total of SS,0OO,- 900 disbursed already by this company on its outstanding capital of only | S2, 900 900.
 Greene-Cananea sold down to s14 this week. which represents a vaIua- tion of only s35,000,000 for the com pany's capital of 2,500000 shares. The companys assets are made up of one of the largest deposits of copper ore in the world, sufficiently developed so that it has been producing at the rate of 50,000,000 to 60,0O0, ,00O pounds of copper annually during the past two or three years, using it's own
 mills and smelters. The company also has in it's treasury and the treas uries of its sub-companies more than
 SS,OO0,000 in cash. which reduces the 1 whole market valuation of it's proper
 ties and reduction plants to about S2LOO0, 900, equivalent to a capitaliza-
 ton of about 50 cents per pound for its present annual productive capaci- ty. This means that if Greene Con.
 solidated can make a profit of 12
 cents per pound on it's copper produc.
 tion it can earn A per cent in each dollar of the market value of it's prop. critics.
 The 5000 900 or more of cash which
 the company has on hand will be used
 in part to build new mills and a smelt. 1 CT which will enable the company to l increase its production to between
 100000,000 and 110,OO0,O00 pounds of
 copper annually, and this production | should not cost in excess of 10 cents
 per pound A capitalization of $35-
 100000 for a property capable of pro.
 ducing 100,000.000 pounds of copper
 means that the profit accruing on the production of ? 3-4 pounds of copper l will be available as dividends for each dollar of market capitalization There. fore if the company gets an average 1 of 15 cents for it's copper, making 8 | profit of cents per pound, it's net earnings will be A per cent and if it receives 25 cents per pound for it's enlarged production, it will show net earnings amounting to over 40 per cent on the present market value of it's stock.
 The investment opportunity that is now offered in Greene-Cananea Is sim liar to that presented when Amalgam- ated sold at $60; and in Copper Range 1 when it sold at $50; in Utah Con soiidaied when 1t sold at $40. and in