The Goldfield news. [volume] (Goldfield, Nev.) 1904-1911, 1909-09-25

f. B., Columbus, O.-N ASK Why
if Consolidated contains the vast
wealth this paper describes, the sock
is lowering around the 800 mark
when its ore bodies would seem 20
measure up a $40 stock. We VIII not
sttempt to enter into all the various
reasons that might be attributed as
having a cumulative effect In keep
ing Consolidated down, but there are
two reasons that might be assigned
either one of which would have that
effect. One reason is that the East
cannot be made to believe the facts
about Goldfeld Consolidated. Eastern
ers cannot or will not comprehend the
magnitude of wealth stored in that
mine. Not grasping the reasons fof
the conservation of "a mine s resources
and a conservative distribution OF div-
idends, they Go not understand why,
with all such riches, the Consolidated
does not pay greater dividends. If a
mine has in sight 60-eent dividends,
for instance, why does it pay only so
cent dividends, and as it does not pay
the 60-cent dividend, it can t, and all
the descriptive articles written about
the richness of the property are sim
ply ''lies," uttered by paid agents OF
the Goldfeld district. This is the com
mon view of it. Consolidated could pay
6O-cent dividends if it had facilities
for treating sufficient ore. The ore Is
In the mines, and blocked out for many
months to come; but the mill Will
handle only about ESQ tons per day,
and as the best results can he had from
a medium grade ore, the rich and low
grade are mixed to give headings of
about $35. The mine could produce
nothing but high grade and output a
couple of million a month, perhaps, but
that would not be mining, but gut
ting, a mine. The Consolidated has
adopted a policy of mining ana treat
ing the rich with the low grade, put,
ting through everything that pays rs
il comes. That means an indefinite
length of life for the mine and divl-
dends for years to come. As the Con
solidated is contemplating charging
its mill to almost double it's present
capacity, dividends should be increased
and the stock sell at a correspondingly
higher price. But until investors see
increased dividends the stock is likely
to sell around it's present prices. There
is another reason why Consolidated
prices do not get up. All Consolidated
is not in the hands of investors, but
there are perhaps from a half million
to a million shares in the hands of
brokers' and spectators. This stock
is used to play the market and pro-
f~essionals find more profit in jockeying
a stock than in holding it for divi-
bends. When Consolidated gets up to
and above 81, You will notice the price
is checked and down it goes, possibly
to So or $3.50 before it rallies again.
This is due to heavy selling at the
high price and recovery of the stock at
n lower price, which keeps the price on
n see-saw. A quarter million shares,
or perhaps only 100000 shares of float
ing stock could control the market. Ii
all the Consolidated stock that is
bought on the market was stored away
for investment purposes only and the
floating stock be taken from the street,
Consolidated would soon 90 to $40 or
SIS. There is still a third influence
that plays an important part, and that
is the concerted knocking of large
brokerage and promotion houses which
have their own stocks to protect. There
are several houses of this kind and they
advertise heavily and have a larg ellen
tage. Hayden, Stone 4 Co., of Bos-
ton, for instance, is a house of this de-
scription. 1t is a concern of high
standing. 1t put its clients into Con,
solidated. Mr.. Hayden was elected to
the directory. After a while, Hayden
fell out with the controlling directors
and resigned from the board, he forth
with began unloading his own stock ami
sent out advice to all his clients to sell
Consolidated and put their money into
a copper stock which he controlled.
This let loose a large amount of stock
that the public could not absorb and
the price of Consolidated went below
So. There are other concerns such as
Nat c. Goodwin & Co., b. +. Sheftells
4 Co., the Mining Financial News, Ill
one and the same, which advertise
largely and effectively, that are ever
lastingly lambasting Consolidated and
everything else that Wingield or Nix
on is interested in. They use every
possible %expedient to undermine Con
solidated and they have their clients
and their following who believe their
statements are square and unpreju-
diced. But after all is said and done,
the price and value of a stock or in
vestment is based upon its returns.
Consolidated is paying dividends at a
rate that does not warrant higher
prices than at present. 1t is a rule
that producing mines should sell upon
a 20 per cent basis. 1t is calculated
that the average life of the producing
mines is not over 5 years. On this