The Calumet news. [volume] (Calumet, Mich.) 1907-1938, 1910-09-02
CALUMET & HEcLA
For Current Year Dividends Will Be
Largest Since 1907

For Current Year Dividends Will 3,
Largest Since 1907
With the payment OF 81 per shar,
on the stock of the Calumet & Heels
Mining Co, for the third quarter OF
the current calender year the com
pany viii have dispursed s22 thus fal
this year. And I'm view OF the fact
that the dividend just declared was
from earnings of period when the
metal was selling at its lowest level
for years, IL is safe To say that the
next distribution will be at least 81
thus making a total payment of S29
for the year. This will make the iarg-
est annual distribution since 1907.
I'm which year the payment was Sos
per share. or total Of S6,50O,O00.
That the policy Of paying dividends
on the Calumet 4 Hecla stock has
changed within the past two years Is
shown by the variation in the quar-
terly rate. II was always the custom
OF the company when a change was
made i'm the quarterly distribution TO
advance or decrease the amount per
share by at leastS5, but since 1907
changes from time TO time have
ranged from between 81 and 81, the
last change being So 10 81 per quar-
ter.
II would appear from the Irregular
ity I'm the amount of the dividend that
the margin between dividends and the
actual earnings is now much closer
than formerly, and that the directors
are DESTROYS 10 give the stockhold-
ers. as large a proportion of the earn
ings as possible. With the decreasing
values in the conglomerate lode II Is
also quite probable that the cost OF
production has advanced. thus rcduc-
ing the net profits on every pound OF
the metal produced. 1t was not until
the Calumet q Hecla had issued $S,-
$4,000 in notes TO pay for the Bige-
low properties however, that the al
rectors began their present policy oil
varying the quarterly dividend by such
small amounts. The purchase of the
above properties may have had some
influence on the dividend action of
the company.
The interest on the notes of the
Calumet & Hecla now outstanding
amounts to $3S4.61O per annum. on
the 32.7Sl shares of the Osccola which
the Calumet owns the dividends OF
$40 per share last year amounted 10
S327.S1O or $4,000 less than the in
terest on the notes. The last semi
annual dividend on the Osceola was
81 per share, and assuming that the
next one will be at the same rate, the
Calumet & Hecla will receive only
S262.24S from the Osceola during the
current year. or $122.362 less than the
To meet the interest on
the notes. To the close of the current
calendar year, therefore, the actual
cost of the Calumet & Hecla for car
rying the Bigelow mines will have
been approximately $340 900. In ad-
dition 20 this the Calumet bought 49,
400 shares of the Clin Mining COM
pany stock Ga segregation OF the
Tamarack), at s13 per share. or a to-
tai payment of S252.2 200. which, added
20 the above net interest charges
makes an aggregate of $500 which
the Calumet will have paid out In
the two years. or since the acquisi-
ton Of the so-called Bigelow prop
critics.
To date the only subsidiary from
which the Calumet & Hccla is recciv-
ing any income is the Osceola, but |
there are several which are on the |
verge OF entering the dividend class
The Ahmeek OF which the Calumet |
owns approximately $4,000 shares Of a |
total outstanding of 10000 shares |
will i'm the not distant future become |
a dividend payer, and assuming that |
this company will pay at least So per |
share the parent company should re- |
ceive a return Of about 100000 per |
annum. The Allouez viii undoubtedly |
enter the dividend class just as soon |
as the price of copper the metal adj /
vances 20 a point whore II will make |
Il profitable for the company 20 in |
crease its output. The Tamarack and |
the Isle Royale will also be heard |
from dividendwise with an advance |
I'm the price OF copper, while the Su- |
perior will unquestionably in time
make a valuable property
II is doubtful # the Centennial will
ever be a profitable mine, for it has
been worked for years without show
ing much results. Those familiar |
with the conditions at the mine main
tain that it Is only a question Of |
time when this property will be clos |
ed down. with the exception Of this |
property, however. the Calumet & |
Hecla owns a valuable aggregation Of |
which will add materially |
to the cash receipts Of the big com
pany within the next few years.-Fin-
ancial News.