The Salt Lake tribune. [volume] (Salt Lake City, Utah) 1890-current, 1911-07-22
MINE ALL RIGHT,
BUT STOCK WEAK
Persistent Knocking of the
Goldfeld Con. in East Is
to Blame.
STRINGS THAT THE
TALENT HARPS ON
Mysterious Weakness Is Made
Clear by Correspondent of
The Tribune.
To Tho Tribune.

Special to Tho Tribune.
GOLDFIELD, New, July 21--Thc faii-
urc OF GoIdneld Consolidated to snow
greater market strength. In the race Oh
highly favorable reports from the mine
workings and unparalleled results In op-
Grafton, has caused no end OF speculation
and wonder as TO it's cause, with no ade-
auate explanation offered. Many ana
good reasons have been advanced why
the stock should be selling for far
higher figure than the present quotations.
but the fact remains that, according 10
accepted standards. tho stock has con-
tinued TO show a degree OF weakness Tor
which IL has been impossible TO account
In view OF the volume OF earnings ana
the promise OF future dividends,
AS n matter of fact the dealings IN
Goldheld Consolidated have been OF much
less volume than has been generally sup
posed-almost too small To estaDuSh
reliable market valuatlon-and the inost
casual scrutiny OF the transfer sheets o.
tho New York stock exchange makes IL
patent that these transactions have NOT
involved any OF the holdings or ths
larger stockholders. Sales sheets OF the
big exchange for two representative ana
consecutive days recently showed sales oil
619 and 1873 shares respectively. at % ana
So. ex dividend. The late sheets SHOW
shares each and many OF smaller amount
One obstacle with which the stock has
had 10 contend-and It's potency as an op-
stable is estimated varyingly-is the per
slstcnt hammering to which the stock
has been subjected by number OF east
ern curb brokers whose motive is not far
persuade their Clients to invest or spec
ulate only in curb issues and 10 dissuade
them from dealing In stocks listed on the
big exchange. the purchase or sale OF
which will yield no revenue in commits
sions to these brokers. Theirs has not
been an ordinary bear campaign, but In
some instances the house organ publica-
tIons and market letters OF these broker
age firms not content with suppresslng
facts OF value as news, have given the
widest publicity to reports that departed
widely from the truth, and this campaign
is still In progress.
Measuring Ore Bodies.
Another factor bearing upon this sub
iect may be the extreme conservatism OF
the Consolidated management, as exempt
fled by the consistent manner In which
the actual performances of the property
have exceeded all estimates, predictions
and promises. and as shown more partic-
ularly by the continued refusal on the
part OF the company's engineers and man
ayers to commit themselves TO specific
appraisement OF the volume and value OF
ore reserves. The latter question is one up
on which the bears have harped endlessy.
but one which need cause no apprehen, =,
sion to the stockholders. In the annual
reports for the past three years the man :
agement has explained the imposslbllityr
by reason of the character Of the de-
posits, OF placing reliable appraisement
upon ore bodies in this district
Under, the head Of ore reserves j.;
II. Mackenzie, managing director and
formerly general manager OF the Consoll-
dated, said: I'm this property experience
in stopping has shown conclusively that
value and the great irregularity In FORM
OF the ore bodies. II Is impossible to
make accurate estimates OF ore reserves.
The average grade OF the ore produced
ic largely dcDendpnt rich
irregular streaks which often traverse the
ore bodies in many directions that only
In very rare cases do samples from eX-
posed faces indicate even approximately
the average production Of the slopes
Moreover. the limits of profitable ore are
not dependent upon.structural planes: but
swell and pinch with but the most gen.
eral relations TO the walls OF the veins,
so that In few places Is IL possible 10 be
certain of ore quantities few feet be-
yond exposures"
Conserving Richer Ores.
In an official report of the United States
geological survey on the Goldheld district
Mr.. f. l.. Ransome saws: The auan-
tity Of ore is undenlably large. but in no
district are the difficulties in the way Of
estimation greater ,rpt 0Wing to the irrgg, reg
range In tenor OF the paw shoots The
conditions thus explained, unlike those
prevailing In most OF the precious metal
mines. together with the fact that little
is heard, formerly. the bodies of ex-
ceedingly rich ore being exposed. have
had the effect OF creating in the minds
| of many people a doubt as 10 the ability
OF the Consolidated company to continue
the payment OF dividends at the pres
ent rate OF nearly 35 per cent annually.
On the other hand, those who are more
| familiar with the operations and tho
properties have little doubt OF the com
| panys eventually, paying the present
| value OF the stock. at least. at the rate
OF so cents per share quarterly. In the
main ore channel large bodies OF excel
| lent ore have been exposed to a depth
! OF 1900 feet and Developments on all
| levels continues to place more I'm
| sight than is being extracted, II Is said
upon excellent authority that there is a
| large tonnage OF high grade ore exposed
| in the workings which Is blocked out
and left standing as il is the policy OF
the MANAGEMENT to mine all ore that can
| be handled at profit In order to avoid
second handling, to maintain the pres
| ent rate of dividends upon as low a
| grade of ore as possible and 10 hold the
! high grade material for further use In
sweeteninR the leancr ore as 1t Is need
| ed for that purpose.
| This method OF operation also makes
for economy in no small degree BY rea
| son OF the superior recovery effected and
| the lower cost involved I'm the treatment
| OF medium grade product. the chief
saving being in the teaching and In the
quantity OF chemicals employed. Oper-
atlng and reduction costs on a medium
grade of ore have been reduced from
over S1l at the first OF the current wear
| TO about $3.50 per ton and futber econ
omies are being effected Ore exposures
a, and above a depth OF $50 feet have
surpassed all expectations and the results
OF recent DEVELOPMENT on the lower lev
els are regarded as among the most i'm
| The best qualified authorities express
confidence that the mines Will continue
to produce to a depth Of fully 1000 feet
Dividend Record.
On July 81; the Consolidated Will pay