The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1908-09-10
NORTH BUTTE
HIGH ENOUGH
George L. Walker Discusses
Butte Bonanza in Plain, but
Unpopular, Fashion.

North Butte is declared to be produc-
ing a little more than 100000 pounds
of copper monthly. at a cost of ~
cents per pound, and to be earning ap-
proximately 81 per share on its stock,
or about s per cent on its present SELL
ing price. says George L. Walker in
the Boston Commercial. A continual
ton OF the present rate of earnings
depends upon the ability of the man.
agement to operate the company's sin
gle shaft TO its maximum capacity 365
days in the year. 1t does not allow for
accidents or Interruptions of any kind.
The only prospect of an, increase in
North Butte's earnings is dependent
upon an advance in the price of cop
per.
The 100000 900 pounds of copper which
North Butte is producing annually has
a market capitalization of 20 cents per
pound, while the 230000,00 pounds
which Amalgamated will soon be pro-
ducing has a market capitalization of
80 cents per pound. An advance of 3
cents per pound in the price of copper.
therefore. would add nearly per cent
to the latter company's net earnings
on the present price of its stock; while
the same advance would add only a
little more than 4 per cent to North
Butte's earnings on the current price
of its shares. Therefore, those who
wish to speculate in copperS with a
view to getting the advantage which
will come with a rise in the price of the
metal should speculate in Amalga-
mated or in almost any other copper
stock in preference to North Butte. the
latter's production being capitalized
higher than that of almost any other
company.
Selling for All It's Worth.
Some of the considerable holders of
North Butte. who have made great
deal of money in the stock, have sold
recently because they feel that not
withStanding the tremendous demon
strated value of the mine the present
market price of So, 900, 900 must be pref
ty near all ii is worth. / regard North
Butte as a phenomenon of the copper
mining world. 1t is an astoundingly
rich property, and has wonderful earn
ing power. Unquestionably it's stock is
an investment. All these facts are well
known to the public, and the record of
the tremendous profits made in days
gone by in Boston e; Montana, Butte &
Boston. Anaconda and Parrot have
caused, for the second time, an unwar-
wanted speculative frenzy in North
Butte stock. The first one eliminated
at s120 per share, and few months
later the stock had declined a total of
500. to $50 per share. When it had re-
covered to $45, some of the insiders told
their friends that ii was high enough.
But recently insiders have been advis-
ing the purchase of the stock. their
heads completely turned by the re-
markable richness of its ore bodies, and
the Unexpectedly satisfactory character
CT current developments.
Unpopularity of Discussion Realized.
1t is predicted that North Butte will
sell at 500. 1t may: but the man who
takes his profit at current prices and
patiently awaits a recurrence of that
reactionary tendency which develops
in the mining share market from time
to time will be likely to leave a larger
estate when he dies than if he contin-
ues stockholder in the hope that he
will be able to sell at approximately
the top price of the movement
A price of s35, 900. 900 for a company
whose mining operations are confined
to but two claims, which has only one
shaft and one hoist, which is dependent
upon another company for milling and
smelling facilities, which is paying
only 100000 quarterly in dividends,
and earning less than 81, 000, 900 annual
ly, certainly is enough. 1t may not be
too high. Perhaps the stock is worth
every cent of its price If il is not
worth a great deal more than IT is SELL
ing for 1t should be sold, because in
vestors, and spectators especially, are
looking for and always finding oppor-
tunitfes to buy things for considerably
less than they are worth.
/ realize how unpopular my discus
sion of North Butte is, and that / am
making enemies every time 1 write
about it. People are always annoyed
when told to take profits in a bull mar,
ket. This is an active stock, however.
and a. very great deal of it is carried
on speculative accounts in commission
brokers' offices. 1t would be folly for
me to ignore it, and as l am obliged to
talk about it, l must tell the readers of
these letters what ] honestly believe
North Butte is a remarkable mine, but
at the present time its stock is high
enough.