The Calumet news. [volume] (Calumet, Mich.) 1907-1938, 1911-08-23
HOW EXPERT FlNLAY
VALUED COPPER MINES.



mission on valuations of mining prop
critics in Michigan, j. II. Fnlay, min
ing expert, comments freely on condi
tions in the copper district.
lie says he has not included the
Tamarack mine i'm the list of profta
bic companies, as it has become worth
less since the Calumet Conglomerate,
by far the richest in the district has
failed in depth. as the Tamarack owns
the tract including the downward ex-
tension of the great Calumet lode
which enabled that company TO pay
$1i5,OOOOOO in dividends. He adds that
since 1906. when the Tamarack began
mining the lower portions il has uni
formly been Improbable and says:
If this richest of all the depths has
played out in this matter, IL may be
taken as a sure inference that inferior
lodes will play out at lesser depths"
He states that there are only six
lodes supporting profitable operations
as follows: Kearsarge. Osceola, Pc
wabic, Isle Ruyale. Baltic and Calu-
met He fixes the value of the Calu-
met & Hecla at $31 100000, and says
it has ore in sight for 20 years, and
accepts the conglomerate sand dumped
in Torch Lake as worth $45OO,OOO
lie estimates the Calumet x Hccla
will yield 7O2,OOO,OOO pounds more of
copper, secured from the shaft pillars
and rock in the lower portion of the
mine, estimated TO contain slightly
over 20 pounds TO the ton, in sharp
contrast to the yield 10 years ago
of 90 pounds per ton.
Mr. Fnlay 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 tangi- |
bic properties and have a merchant |
able value as commodities. As for
mining stock. they:
DO not represent anything
definite Some pay dividends, in
which case their quotations are
comparable with those of other Sc
curities, but I'm the majority of
cases mining stocks represent
nothing more tangible than hopes.
They huctuate wildly as these
AAhbNs 4 lo' anu oAh1AANs ~ 49,
fluctuations make these stocks
useful for gambling People buy
them not as a serious investment,
but as temporary speculations;
often knowingly 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 notable instance of this is
that of the famous Comstock mines of /
Nevada, which have scarcely paid a /
dividend in 80 years. on the contrary /
the assessment have reached astOund-
ing figures, probably over a score of |
millions. The assessments paid by /
stockholders merely take the place of /
prizes paid by lotteries. serving no
purpose except to perpetuate the gam
BILE.
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 |
IL is doubtful If much Of these stocks /
is sold to gulllble public. They are |
mainly bought and sold by seasoned |
gamblers with whom it it a case of |
dog eat dog While this Is an OK !
IRENE case, il IS wholly true that /
gambling forms an element to be
rcckoncd with in every district where |
trading in mining stocks has become |
established
"Thc copper district of Michigan is |
10 exception. There are in it cases
of terrific fluctuations in stock values. |
The Arcadian mine was valued an one |
time at $4,000, 600; a few years later /
at 100000, by stock quotations.
These reasons make IL evident that |
the use OF stock quotations I'm a Sc
rious appraisal of mining properties !
IS illogical and beneath the dignity Of
sovereign state"
The valuations in the report arc
stated to include all value that can DC
put on mineral lands and mining,
milling and smelling equipment and
mining supplies. 1t does not include
property that can be valued for pur
poses other than mining. such as sur
face rights of any kind agricultural
or timbered lands, houses, stores mcr-
chaudise or cash
Taking up the mines, scriatim Mr.
Finlay devotes space, In some cases
columns of space, 10 each property.
lie calls the future price Of copper IL
cents a pound. He saws he IS con
WINGED that the market is bound TO
rise. Coming down 10 the value OF
the copper properties the report says:
only nine copper companies in
Michigan have made money during
the past five years. Their actual earn
ings were $50 1897, $50 with copper aver
aging 1913 cents per pound. Had the
metal averaged IL cents the earnings
would have been $4,000. 900. This
would be SS,2iOOO0 a year"
The minute analysis Of the proper
ties is a matter rather FOR the copper
fvv.0for and oprcuTnfpr than tta ,o,,