The Detroit times. [volume] (Detroit, Mich.) 1903-1920, 1911-08-21


These valuations are based sub
stantially on past and present earn
ings. During the past Ave years prof
table copper mine earned $50 1897, :
690.2T over expenditures, but l con-
slider these earnings abnormal, be-
ing mainly due to the great boom OF
1906 and 1907. In 1906 these mines
earned 81 ,09S.O00, but In 1910, only
81, OTIS, 900.
The iron mines earned In five years
$57 ,551 ,202.06 without the benefit of
any abnormal prices. In 1910 the
earnings were higher than for the
average.
The total valuation OF the iron
mines Is based on an expected an
nuai tonnage for all the districts Of
1922 900 tons and total estimate
OF ore reserve of 195,041,S09 tons.
Mr.. Finlay states that stock market
valuations were not considered by
him. On this point he observes that
mining stocks may differ from wheat,
iron or COPPER In that these are tan
gible properties and have a merchant
able value as commodities. As for
r1!n.ng stocks, they:
do not represent anything definite.
Some pay dividends, in which case
their quotations are comparable with
those OF other securities, but in the
majority Of cases mining stocks rep
resent nothing more tangible than
hopes. They fuctuate wildly as these
hopes rise and subside. The very
fluctuations make these stocks use.
ful for gambling. People buy them
not as serious investments, but as
temporary speculations; often know
ingly paying far more than they are
worth, on the chance Of selling them
to somebody else for still more.
In many cases this sort OF thing
has been organized into a business
which depends not on any intrinsic
value in the properties, but wholly
upon gambling. For this purpose the
stocks are priced not because they
are stable but because they are un-
stable. A notable instance OF this
is that Of the famous Comstock
mines OF Nevada, which have scarce
ly paid dividend in 80 years. On
the contrary the assessments have
reached astounding figures, probably
over a score of millions. The assess
ments paid by stockholders merely
take the place OF prizes paid by\lot-
teries, serving no purpose except to
aerpetuate the gamble.
The public, of course, Is fed with
tales OF the marvellous possibilities OF
these great mines and their past. rec
ord Is pointed to often enough. Still
II Is doubtful IL much of these stocks
is sold to a gullible public. They are
mainly bought and sold by seasoned
gamblers with whom II Is a case OF
dog eat dog While this Is an ex-
treme case, II Is wholly true that
gambling forms an element to be
reckoned with In every district where
trading In mining stocks has become
established.
THE copper district OF Michigan IL
no exception. There are In Il cases
OF terrific fluctuations In stock values.
The Arcadian mine was valued ut one
time at $12,000,000; few years later
at $4,000, by stock quotations.
These reasons make Il evident that
the use Of stock quotations in a Sc
rious appraisal of mining properties
is illogical and beneath the dignity OF
a sovereign state.
Taking up the mines, seriatim, Mr..
Finlay devotes space. In some cases
columns OF space, to each property.
He calls the future price OF copper IA
cents a pound. He says he is con.
vinced that the market IL bound TO
rise. Coming down to the value OF
the copper properties the report says:
Only nine copper companies in
Michigan have made money during
the past Ave years. Their actual earn.
ings we're $50,9s7,69 with copper aver
aging 1913 cents per pound Had the