The Wallace miner. [volume] (Wallace, Idaho) 1907-current, 1912-02-08
BUS|NESSMETHODS|NM| MINING
Believes Dividends Should Be Applied
in Making Investments in
Mines Permanent.

In recent article discussing the important matter of
making mining companies permanent and in this way
enhancing the value of Stocks George L. Walker of Boston
wrote:
In special article in the Boston Commercial of Decert
Der g. discussed the question: care Mining Stocks Invest
mentY The point Of my contention that stockholders
should consider the duty Of the companys officials pro-
vide for the peanence of their enterprise and it's continued
dividend earning capacity by purchasing from time to time
additional property of demonstrated prospective value
portion Of the surplus profits should be set aside to be used
for this purpose My opinion is that wise investment in
property that will Immediately eventually give mining
company greater earning capacity well enghen its pro
ducve life is incomparaby better than an extra dividend
When corporation has succeeded in perectng its
operating organization it should set about to make pera
ent In the of mining this can best be accomplished by
continually expanding the volume and scope OF the
activities Give the manager plenty to do and permit him to
develop the capacities Of his subordnaes Every ambitious
man wants be connected with successful and growing Ell
terprse AS present conducted mining company
only while is the development and constructive stages
but by pursuing policy Of expansion buying developing a
operating additional properties it can be made to grow con
tinuously
Until within year two plans for the consolidation OF
mining companies always quite popular Experience
has shown however, that rule there is little to be accom-
pshed in this way If consolidation saves the lie OF one
company protects the investment of only one group OF the
stockholders it usually ks injustice to the other
It is we'll known and think quite generally recognizes
as fact that the gross market value of mining companies a
rarely great after they have been consolidated as be
fore Consultations swell capitalization and most mlnn
companies have too many shares from the outset The right
wav to expand is to acquire additional value whenever IT i
possible without increase OF capital
The wisdom and stability of the basic plan are what give
value to corporations securities Big dividends do
always maintain the market price of stock Confidence
the only mirror that will reflect values II the management
is efficient and trustworthy and the plan correct you can
drive confidence away with gatling gun
But there must be both plan and management VII
illustrate nv point by citing Goldied Consolidated Ih
company has excellent management and pays fabulous d
dends but it lacks plan and expansion policy AS cone
quence it's stock selling for &c. Notwithstanding dvde
of So year. Just the stock YIELDS ~ per ce OH t
market price. ,
Being no plan, there is confidence, and consequently
it is almost impossible to any investment value IN doo
field Consolidated stock Since this company was formed
five years ago. it has dsbused $5625S65 in dividends an
it's entire capital stock is selling for about 81 oooooo l
the company had divided only $3OOO0OO year among II
stockholders and reserved $OOOOO for the avowed upo
of purchasing other properties, believe us STOCK "ou o
be selling for $40 share. 49,,
Everybody seems to think the GoldfeId CONSOLIDATED
must be approaching the end OF it's dividend paying career
The management does not contest tins assumptol IL Ia
encouraged II in fact and there suggestion even ina
anything will be left for stockholders after the company u
is gone.
There is danger that mining is coming to be con
sidered happy accident or matter OF luck IKE hnohs
$40 bill in the street It behooves mining therefore,
strengthen the business side of the industry rms an r
of growth Men are growing in wisdom, ability and bread
of view The country and the world growing indusra
and every business enterprise must grow therefore, or 1t
not in harmony with it's surroundings and therefore not &c
serving Of popularity
Copper mining companies seemingly about to ente
mon great and sustained period Of prosperity When tn
be profits that will result from the sale of their products ar
realized the total earnings should not be dlsbured
dividends but portion reserved for the purchase OF nor
property and it's development
Mining companies and but the company that soe
into the mining business and follows the most approved bus
ness methods in the conduct of it's affairs can go on
It the growing tendency OF the times to make mining ieS
Of a lottery and more of business