The Alaska daily empire., 1915-01-23
ALASKA GOLD MINES
 GO ISSUES BONDS


 The Aioska Gold Mines eompMy the holding company for the Aiaska |Gas,lnoau Mining Company hna de cldel ,o place 2 bond isaue Of iil5VV' GOO among its stockholders on tlie Dag Is ihat each holder of five shares o stock mRy pmchase one Slo0 bond The bonus are conUoveftabie Into stock at bisia Of $S0 share for Che stock The atock already has reached S29 and it has been consistently aa yancIng since inc opening of Che stooH marketa
 Boston Paper Explana iasue.
 phe Boston News Bureau Of Jan 9 explains the issue and the reason toi lt iu 9 first page story It says;
 Notices have been sent out calling 8 special meeting of the stockholders Of the Alaska Gold Company, Jan. 2l for the purpose of authorizing an is sue of $l50O,0oo 1O-year 6 per cent gold debentures. convertible into Al asl,o Gold stock at SS0 per ehoro
 "lf authorized, the stockholders oi record on Jau. % Will have Che rigbl up lo Feb 10 to subscribe for these bonds pro rata. A holder of DO sharei Of stock Rlll have the right Go take $lOO of bonds. The issue has beer underwritten by Hayden, Stone & Go
 aThe proceeds Of the sale of the bonds Will be used to cover the cost of construction, which has somewhat exceeded the original estimates as Che management has in several depart ments-the Sheep creok umncI fol iustance-proceeded on the basis ol providing at once for 9 2000e.ton daily capacity In order that the company might be saved later on Che expense of increasing the capacity Co this q gure. The coarse crushing plant has been constructed to treat at once 10, GOO tons instead of 5000 tons. while the fine crushing plant has been built to treat 5000 tons daily instead ol 6.OOO tons
 Enlargement of Operations tho Cause
 It is not surprising in view of the determination to put the plant equip men, and openings in shape to treat 5000 tons daily Instead of 6.000r that Alaska Gold should need 8 little mon ey at this time, In fact where an ul timate saving could be effected by building at once in preparation ioi 10000 tons. the extra money has been expended This. of course. Is econ omy in the long run
 "The new bonds are to be made con gertable into stock at 80 which prac. Hcaiy means that when exchanged the outstanding shares will be increas ed from 750.O00 os at present to 800, 900 shares
 After providing in payment in full for the property the Alaska Gold man agement raised S4500000 cash which has all been expended in development work and construction of the most permanent character Altogether 22- 137 feet Of development work were driven in 19l8 and 10000 during the first eight months of 191a, total oi over 4200O in 20 months--a record Of opening work probably unparalleled
 "While the officials of the company are not putting themselves on record to this effect, it will surprise some Of the directors, if when the capacity has been built up to even 5000 tons a day the property does not show ore val ues much better than the original es timate of S150 8 ton, and there will be another surprise party ii the cost is not lower than the original estimate of @ cents @ ton. ln other words profits oi S1OO a ton, instead of 2S cents. are reasonably assured
 "On ,his basis milling 5000 tons . day should provide profits of say S2, 100000 per annum, or $3.40 per share with all bonds converted. This is bet ter than 10 per cent. on the present selling price of the stock
 "When the mill has been built to 2 capacity Of 10000 tons a day or z, 000000 tons year-and this Is the goal in view-$1 per ton would mear annual profits ol S7O00,000 or say S8 per share on S50000 shares of stock assuming the issues of securityC equivalent to an additional 50.0Ol shares of stock to bring the capacity uD to the larger figure. lt is only faii to state, however, that all the officials are willing to put it down inblack and white a8 to the estimated profits arc 75 cents per ton. They win be 9. much surprised as many others how ever. II these figures are not greatl, improved upon
 Hayden. Makes Statement
 President Charles Hayden of the Alaska Gold Mines Co.,, in a circular to the stockholders, calling specia meeting to act on the proposed $l, 500000 bond issue says in part.
 'At che time of the organization oi