The Caldwell tribune. [volume] (Caldwell, Idaho Territory [Idaho]) 1883-1928, 1916-02-25

"A hCW Ids uCfSlOpCu
the stock market-or, more correctly,
an increased emphasis upon ten
dency that has been gradually develop
ing Tor three months or more; this is
tine switching over OF the investing
public from the war stocks to the
stocks OF the leading mining COM
panieS, most of which are at present
paying their stockholders dividends
tar in excess of their most sangulne
expectations. The same is true. to Il
limited extent of a few OF the so-called
independent oil stocks, which in re-
cent weeks have announced enormous
net earnings, a big percentage OF
which will be paid over as dividends
to the purchasers of the stock
We have only to refer to the Off
cial documents of the Department OF
Commerce of the United States for re-
liable information relative to the ex-
traordinarily large earnings of Ameri-
can metal mines in recent years.
Banks, railroads and industrial con-
Germs appear insignificant by compari-
son. One natural result has, of course,
been the Introduction of numerous
take mining propositions, and the act
ual selling to unwary investors" OF
beautifully engraved certificates of
mining stock not worth the price OF
the gilt borders which so glaringly
adorn them. But those who have taken
the trouble to carefully examine the
physical condition of the properties in
which they have sought investment
have convinced themselves of the ex-
traordinary possibilities which they
offer as genuine and permanent in
for copper and zinc since the outbreak
OF the. European war has had the eff
feet OF boosting the price of these me-
tails of unprecedented price levels,
not only adding greatly to the net
been in operation for years but max
ing it possible for many others which
had discontinued operations to re-
sumo and to market their product at a
fair profit. 1t is not only the foreign
demand for these metals that has
brought about the conditions describ-
ed above, for with the great revival in
the domestic trade of the United
States the call for copper (and brass
which is two-thirds copper). zinc, lead
and tin has been proportionately great
er than in previous years.
The result has been widening de-
mand for seasoned dividend paying
mining stocks. prices for which have
been continually soaring, with ap>
parently no recession for proft-takine
on a large scale This is sufficient
proof that the stocks are being bought
outright by American investors, and
put in strong boxes as income-pro
ducers, 1t is estimated that in recent
weeks fully one-third of all the stocks
sold on the New York EXCHANGE have
been the mining shares, and many in
stances are cited of mining stocks
which few years ago were quoted in
cents are now quoted in dollars and
in multiples of ten. This is due, not
to manipulation, but to the profitable |
revival of mining properties which had |
been considered dead and worthless
and which are now paying fancy re-
wards to those who have reclaimed
them.
10 enumerate some of these mining
properties would be but to repeat
names which have grown familiar
through repetition in the financial
columns of the daily newspapers,
These include Utah Copper, Anaconda
Chino, Miami. Shattuck-Arizona. Ken.
necott, Braden, St. Joseph Lead, etc.
These companies have distributed or
are about to distribute portions of the
vast profits accumulated during 1915,
and much greater profits are expected
IN l9lo. One authority estimates the
profits on American copper production
IN l9l5 alone at close on to $2OO,OOO.-
OOO with prices for the metal ranging
from Is to Is cents pound. If, as IS
now expected. the price of copper
metal ranges from "a to 20 and 80
cents a pound, the net profits in 1915
will be easily double those of 1915.
Wall. Street. therefore, very opti-
predicts that in two or three
years the most successful producers
VIII pay out such enormous dividends
mat IN some cases the net income of
few years will be equivalent to the
present purchase price of the stock.
This is like having your pie and eat
ng 1t, too; but the present outlook, In :.
many respects, amply justihes this
optimistic forecast. A wise selection )
81 the dividend mining stocks will. in
he estimation of astute leaders of 5
lanance, prove most satisfying to in
iestors at this time. /
Meanwhile. the general position or s
he stock market, as compared with \ !
year ago, is most favorable one. and l
'ontrary to an impression which seems 5
o be quite general but which is never I
helesss erroneous, the improved posi- !
ION IS not based upon the unstable Il
attitudes OF the price of war stocks"
| he average price of the 20 railroad, d
md Il industrials used for statistical