The Black Hills union and western stock review. [volume] (Rapid City, S.D.) 1904-19??, 1909-05-21
The Prospector and His Burro.

pector to his burro, "there is a vast
difference between the value of a
producing mine and the auctuating
stocks which are dealt in on the var
ious exchanges Of the country. A
mine may be a producer and divi-
dend payer, and yet the stock in the
| company may sell at times far be-
low its actual value. 1t seems in
credible and yet it is a fact that mine
and stock values do not maintain
parity any more than you maintain
the same allegiance to me that you
do to the barley sack. After the
sack is empty you are willing to lose
yourself and go off by your lonesome
forgetting the fact that it is l who
refills the sack, and that but for me
you would be shy of your barley on
many occasions. And yet there is
relation between me and the sack
which should not be overlooked,
just the same as a correlative rela-
ton exists between a stock and a
dividend paying mine and the mine
of the company. If the credit of a
mine is good, the stock of the COM
pany should stand high in the esti-
nation of the investing public. If the
mine is a regular dividend payer the
price asked for its stock should be
in harmony with the mine value on
a percentage basis. If a dividend
paying stock is good to hold because
of its earning capacity, it should be
a good stock to buy, and this at a
price somewhat in keeping with the
interest 1t pays on the money in
vested.
"And yet strange to say, stocks
which were selling at from So to So
two or three months ago, and which
are still paying their regular divi-
dends, are now selling at from 81 to
81, and from no other cause than
that juggling stock brokers combine
for the breaking of certain stocks
merely for the gain they will make
out of the transaction; and there are
stockholders so feeble minded that
getting alarmed, they will drop their
shares on the market, way below
their intrinsic value, thus assisting
the bears in their endeavor to under
mine their own securities. Il
| II know you do not understand
all am saying to you" continued
the prospector, none whatever;
but with your feeble instinct you
halfway sense what am telling you
"A dollar is dollar you say, and
why should man hand out two
plunks and say that one is worth
100 cents. and the other flfty?' Say
that one PUNK represents the pay
ing mine, ad the other the stock Of
the mine. The mine Is really worth
the 100 cents, but the stock has de-
lpreciated to fifty. The variance be
tween the same is not In harmony
with their relationship. The divid-
Ing line Is hard to determine. and yet
the man who is drawing big divi-
dends on his stock Is often scared
into selling the same at q figure
much below its actual and intrinsic
value. knowing that the mine IL all
right. merely because some stock
breaker has fxed up a deal TO rob
him Of half Of its value. and also
OF the regular dividends. Il he has
been wise enough to keep It.
want to tell you, Old Long
Ears, "a continued the pr0spector,
sthe difference between mine values
and stock values should be so slight
that; IL would take q fifty-horse POWER
microscope TO disting uish between
the two. 10 one e good, the other
should be Of the same cal fbre. "A
flrst class stock belongs only to q
nrst class min They are INSOFAR:
able, or should be, just % yous arr
inseparable from your nose-bag when
we get into comp at nig lit ana there
you are; ana then SOME b at Lake
Mining Review.
& - Futt., { 81 81 4 III q,
ss1 Economists are forecasting the
possibls idtnls dleselop naent az IN
aSficultnlAl lands tha UnitedI
- N m N II -. !.