Custer weekly chronicle. [volume] (Custer City, S.D.) 1890-1931, 1909-10-23

cost OF the mine will be to the paren
corporation, $1,OoO,0Oo. The sub-com
pany will then be capitalized at 50, COO,
900, of which the parent corporation will
receive for their profit ST, ,OOO, 900 o.
stock and will sell the other 1000, ,00(
shares for cash at par value to bring back
to the parent corporation all the capita
expended on such sub-company. With
the cash so obtained the parent corpora.
ton will then put complete milling
plant on the next best developed prop.
erty, organizing later sub-company the
same as in the above example until all
the mines owned by the parent corpora
tion are developed and plants erected.
BY this system, the one capitalization Of
the parent corporation will be sufficient
to develop 80 or 100 properties. The
corporation retaining in every sub-com'
pany half the stock issued, will there
fore receive half the profits from the
mine making the stock increase in value
enormously.
The greatest advantage the owners OF
mines will get is in the parent corpora
tion acquiring as many mining proper
ties as possible for the 1000, 900 shares
set aside for such purpose as none of the
working capital of 81, 900, 900 will be us
ed for buying properties. After this
], ZOO, 900 shares of stock is exhausted in
purchasing mines, the purchase of fut-
ure properties will have to be bought
out of the profits of the corporation, so
it is better for the owners of mines to
take less ID stock of the parent corpora
ton at the commencement for their
properties, 80 that it will not be neces-
sary for years to purchase other mines
with the mining profits.
On the other properties owned by the
parent corporation, besides the first FIVE
that are being developed on a large
scale, development work will be done
on them, and those that show to the
best advantage will then be developed
in large way for the future sub-com-
panies.
Under this system, the expenses being
spread over number of mines the
working costs will be greatly saved.
BY this plan it makes no difference to
present owners which mines are devel-
oped first, or which turn out to be the
best properties, for the interest of every
owner of the stock will be in the amount
of profits the parent corporation can
make from all the mines to pay divi-
dends.
The more properties that the parent
corporation takes up, the greater the as
sets will amount to and therefore every
property taken up reduces the amount
of stock that can be given for the next.
The example, if so, 900 shares of stock is
offered for property when only four
properties are taken up, and the owner
refuses such terms, when eight proper
ties are taken, not more than 25, 900
shares can then be given for the same
property, and when twelve are ten up,
not more than 10, 900 shares can then be
given.
The corporation will be organized by
Robert Bunce, of London, England, who
will act as president and managing dir
ector for the first five years. He will
see that the whole plan is carried out as
now arranged. There will be seven dir
ectors who will be chosen from those
most interested in the corporation; all of
whom are well known men of ability
and integrity. There will be one or
more banks and trust companies for
the holding of the capital and every care
possible will be taken so that it is used
wholly for the development purposes.
The plan is to make this stock the most
valuable mining stock in the world.
The offices of the corporation are in
Deadwood, S. D., F. w. Bower being the
secretary.-Lead Call.