Los Angeles herald., 1909-12-24
DOUGLAS TALKS
EXTRA DIVIDEND
PHELPS-DODGE MAY SURPRISE
STOCKHOLDERS
EMPLOYEES EXPECT SLICE OF BIG
PROFIT MELON
People of Douglas piscredit Rumors
That Local Company Might Enter
Copper Merger Now Un-
der Discussion

DOUGLAS. Dec. 23.-StoclIholders in
the Phelps, Dodge & Co. are just now
Interested in a rumor that the com
pany proposes to cut melon LOT lue
benefit of those who hold It's STOCK III
the way of AN extra dividend on Jai-
uary l. This company when II was
organized a year ago cut melon tnaI
was about the juciest ever enjoyed by
many of the employees of the COM
panies included in the merger company.
In Douglas Bisbee, Nacozari and Nor
enci many of the old and faithful en-
ployes of the Copper Queen, the Moe
tezuma Copper company and the De
troit Copper company were allotted
a few shares of this stock at par. The
par value of the stock was S1OO and 1t
is today quoted in New York at $3.50
bid and S2e5 asked. Here was n re-
membrance for faithfulness not re-
corded in the business world very ire
quently.
During the year Phelps, Dodge &
Co have paid three quarterly dividends
on it's stock, each amounting to S2.5J
per share, or at the rate Of 10 per cent
annually on the capital stock which
is $50,000,000.
Dividend Still Indefinite
What the extra dividend would
amount to of course no one knows, and
IT is not certain that there will be
one. still there is widespread belleI
that the Copper Queen is today max
ing copper at a greatly reduced cost
over any former period in its history
The annual report which will be made
to the stockholders with the beginning
of the new year is expected to be
startling surprise to all in the matter
of low price of production. 1t is be-
lieved that it will be shown that the
Copper Queen is today producing cop
per at the lowest cost of any company
in the west.
Several years ago the Calumet and
Arizona was producing copper for less
cost than the Queen, according to re-
port. One of the annual reports of
the Calumet and Arizona put the cost
of production at less than 6 cents, but
that was from high-grade ores taken
from near the surface. 1t is known
now that the Queen is producing its
copper for less than 1t costs the cal
umet and Arizona, but it is not be-
lieved that it's cost is as low as the
minimum of the Calumet and Arizona.
No one in this section believes that
Phelps, Dodge & Co. will be included
in any copper merger that may be
formed. Such action would amount to
the retirement from the copper business
of the Phelps Dodge interests. and no
one expects such a thing to occur in
the face of the dividends being paid
on Phelps, Dodge & Co. stocks dur
ing the present extremely low price of
copper.
Would Reach $500 a Share
A man we'll posted in the copper sit
uation and the probabilities for the
future of both metal and stocks gives
ii as his opinion that should copper
reach II cents a pound and hold that
price for a year that Phelps, Dodge &
co. stock would reach $500 a share
Since the organization of Phelps,
Dodge & Co. there have been very few
sales of stock recorded. A few shares
have been parted with locally and one
sale of stock amounting to 100000 was
made by e. r. Pirtle of this city for
a New York party, but practically
there has been no trading in the stock
and it is seldom quoted on the stock
boards or in the east.
The stock has sold as high as $3.50 a
share, though the most of the trans
actions have been around S225 and $235.