Daily Arizona silver belt., 1910-01-30

much ore in sight, and I advanced req sons for this which | think were cor rect, the principal thing being that of ten the cost of development is wasted inasmuch as the ground caves in, or, as has happened in some of the Lake Su- perior mines, the interest on the money, where development has been done for twenty years ahead, has added very large factor to the cost of operating. Still, however, tonnage of ore is the main thing to be considered, if it is actually developed or simply prospec tive.
 Referring to the question of return of capital m mining industries, there are those who advocate that the com. panies themselves should start fund to repay the capital of the stockholders. l do not approve of this for two req sons: First, the selling price of the stock may vary greatly at different periods in the mine's history, and sec ond, l believe that as this capital be- longs to the stockholders it is for them to decide how and when they shall re- invest it. l believe that after accum- ulating a sufficient cash surplus to al. low for the purchase of adjoining properties or radical changes in the re- duction works, that all monies should be repaid to the stockholders from year to year. In this connection it is un- necessary for me or you to look too closely into the par value of mining stock. You should know the total number of shares and the selling price.
 For the reasons as given above the of bn af de may be fraction of or a multiple of the original par value. The par value of the $100,000 shares of Calumet & Hecla, for example, is $25, of which, if my memory serves me right, only sl0 was ever paid in, and still this stock is today selling on the Boston stock exchange at over $500 share, and the laws of the state of Massaehu- setts permit trust funds of widows and orphans to be invested in it. The ques- tion might naturally arise, if one foi- lowed the theory of the mining com. pany establishing its own amortization fund, as to whether this fund should be on basis of the 5000 paid in, or the $25.00 par value, the $500 pres ent selling price, or the $1 ,000 price, at which the stock sold some time prior to 1907.
 The Mining & Metallurgieal society of America, of which I have the honor of being member, has during the past year discussed the question of what information a mining company shculd give it's stockholders each year, and it was finally decided that such q report should embody the following things:
 l. Details as to capitalization of the company; the number and classes of shares outstanding at date of the re. port; the respective rights of these shares; the number of shares remaining in the treasury; any options or con tract on such shares; any bonded in debtedness.
 2. A brief review of the past his tory of the property, the work aecomp- lished and the results obtained. with tabulated statement of expenditures and receipts from the beginning, mark etable products made each year, and the sums received from the sale of same, the annual net earnings and the disposition made of such earnings.
 3. A similar review, but in more 3e. tail, of the work of the year, with statements of the assets and liabilities, receipts and disbursements, cost sheet and other information as to work ae complished and results oftained.
 4. A statement of ore reserves at the date of the report, compared with the reserves of the previous year, with an estimate, by competent authority, of the probable life of the mine.
 When mining companies give this in formation then one will be able to get a pretty good idea of the value of 9 property, and you, who are studying finance, can by little training be able to as carefully analyze mining reports as you can railroad reports. It is, of