The Salt Lake tribune. [volume] (Salt Lake City, Utah) 1890-current, 1912-08-29
SOME TROUBLES Of
A DEVELOP|N ING MINE
Mascot Copper Company Has
Fire to Fight From the
Inside.

In developing a mining proposition there
Is no limit TO the adverse conditions
that can and do materialize to embar
rass operations. outside influences usu-
ally being enough to discourage any in
reference from inside circles. T. N.
McCauley, general manager OF the Mas
cot Copper company. has issued a re-
port TO the shareholders. and the follow
Ing excerpt illustrates the unexpected Ills
TO which developing proposition fire.
qucntly Is subjected:
Unfortunately somo Of the sharehold
ers who have invested their money in
small amounts are becoming impatient
and SOME OF the agents who formerly
represented the fiscal agency OF the
company, handled the truth carelessly and
having been discharged from the service
These conditions make IT quite difficult
for the management to complete the sale
OF the stock In order TO raise the bal
a. OF the money necessary to place
tn property on a profitable basis. We
have about one hundred thousand dol
lars cash on hand and a considerable
amount represented by notes given in
payment for shares OF stock, and all
current debts paid to date.
Adverse Actions.
But We will not have sufficient re-
sources with which 10 complete the de-
yelopment and equipment OF the mine
until the remaining treasury shares are
many OF the individuals. who hereto
fore, by their cash investments have as
sisted materially In tho Development and
equipment of the property thus far, are
now and have been saying and doing
things which would, were the manage
ment less active and aggressive. render
their shares OF stock almost valueless.
These persons, instead of continuing
TO assist and support the corpora ton,
seem TO be working In a very unwise and
intudicious manner. directly detrimental
10 their own personal investment and
the future interests Of the corporation
I know OF nothing that can be done by
the management that has not already
been done to keep the shareholders thor
oughly Informed In regard TO the facts
concerning the development and equip
ment Of their properly. and / fnil TO
zee how Il is possible for the directors
or myself TO prevent shareholders from
making such disposition Of their stock
as pleases them after Il has been pur-
chased and paid for.
How Insiders Stick.
The condition referred 20 herein sug-
gested TO my mind tho advisability OF
making a rigid Investigate ton OF the con-
dltions existing during the development
stage with other copper compa nies and
their shareholders throughout the coun-
! try. The Information thus obtained shows
that an average OF about 20 per cent OF
the original purchasers OF the shares In
the large copper companies do not re-
tain their stock until the first dividend
is paid. They become restless. listen 10
all sorts Of pessimistic predictions and
stories derogatory TO the undertaking and
It's management. creating In their lmag-
Ina ton visions OF total losses. and finally
sell their stock at a sacrifice before the
company brings It's enterprise TO q pro-
ducing stage. Only about 20 per cent
| Of the original purchasers OF the shares
| In copper companies make any money
| by such investments because the other
shareholders sell their stock before tho
company pays the FIRST dividend
| The above conditions, as described.
believe are due 20 the fact that Il re-
qures such long time and a very large
amount OF money to fully and properly
develop and equip large copper prop
erty. and make OF II a producer on a
scale 81 sufficient magnitude To enable
tho company to mine the ores on a ba-
sis TO successfully compete with other
great properties IN respect 10 the actual
cost per pound of producing and market
ing the red metal.