The Calumet news., 1912-08-17
SHANNON EARNS
MILLION A YEAR
Present Intention is to Pay Div
idends Quarterly

The action Of the directors Of shan
non in declaring a dividend Of 90 cents.
abou, met expectations. There vas
some disappointment over the failure
Of the directors To- designate the div
dend. as quarterly but that would not
have altered the situation any for Il
the earniugs warrant the payment ey-
cry three months. il will bo made and.
II they do not. the fact ot its h1viuF
been called a quarterly dividend would
not prevent its being passed. IL can b,
said that 10 IL the present intentions a.
the mana cement 90 pay dividends
quarterly So lonG rs they are earned
Shannon is now carnius 40 the rate
Of better than a million dollars a year
which is equal TO over So per shat
for the stock. dividend basis of s.
per share per annum VIII, therefore
take less than two-thirds OF the earn
ings and permit of am addition 90
about SiO0 600 90 the surplus. less tse |
cost Of what bonds the company m3. |
purchase. The action of tre directors |
was. therefore distinctly consorvatN |
and the stockholders can look ior
larger dividends when the surplus bo.
been built up TO figure considered
sufficient, by the directors. The nt-
ture dividend action Is oi course whuiN
dependent ON the copper metal mat
ket, but it seems fair tc assume that
Shanncn will pay at least the s. ret.
while copper remains above ~ cents
An estimated balance sheet as o'
August 18th shows liquid dssets a.
S665.S36 with estimated liabilities ot
less than 100000 Leaving balance of
current assets cf S5C7.S3G. Included n
the amount is $500, l03 for -ash ana
copper and the absence OF anything
but the ordiuary running liabilities iu-
dicates that shannon now has com
Portable and ample cash surplus. Tie
directors made the dividend payable ou
October tst. by which time tbe com
'any will have the bcncdt of addition
Al earnings, so that the payment of
.t5O.00c in dividends will leave the
reasury about in It's present condi
ion
The company has developed $1,000
100 worth of ore On one Of IFS outs.d "
properties and all three are now cone
20 the output THESE thrcc
properties without the shannon prop
ltv itself are capable of earning
'er share per auuum when 1t is &C. c
nembercd that tuese outside proper =
les are now entirely pGid for out of A
arninGs. that the old per cent bonds \
ave been retired from earnings that 4
he company owns "a townsite and has \
and added 90 the caTacity Of :
is smelter and betrayed the entire \
ost from earnings 10 Will be realized Y
hat Shannon has demonstrated itself 3
% Doe steady Garner aud that stock 3
uiders, now that AN these cN;ruordu- g.
ry expenditures are past, can lpua G.
onward to substantial returns. G.
As We have stated, SAWS the Fuau- q
Ial News ir tie price of copper hole. g.
Do. shannon can pay the 81 UyiuruG J.
ate and nave $500. additional ysli- E
y earnings from w1i.h ,o retire bonds F
nd add 20 surplus So far as OBJ, g
.onds are concerned. however u is o.
more than likely that tho price of the O.
took now that b. is dividend payer -
Vim be high enough t1 lead 70 the con. n
ersion of the bombs into stock to taxi, IN
dvautage OF the better market. IN
Tho annual report Tor tho year end Is
ns with the current month. is expect x
q 10 show earnings of about f605.ooo Is
r s. per share for tho stock. uotWitb- L.
tanding me loW prices for copper that l.