Bisbee daily review., 1917-12-30

WALKER POINTS
OUT STRENGTH OF
LOCAL COMPANIES

LUVnL VUtu hitiLU
The strong positions OF Calumet
and Arizona and Shattuck-Arizona
are shown in a recent copper letter
by George I. Walker Of the Boston
Commercial The part referring 70
the two local companies. follows:
ShSttuek.
Shsttuck has declared a regular
quarterly dividend OF IS cents extra
per share. the latter IS scents being
DESIGNATED as return OF capital invest.
ed Il compares with so cents regular
and IS cents extra disbursed each of
the several preceding quarters. This
dividend. which is payable Jan. ls.
calls for the disbursement OF Sl75.-
Gee and viii make SlS.7S per share
or total OF S6.5S2.S00 disbursed BY
the company since organization. shat
tuck paid total dividends OF s. Il share
in 1917. s475 in 1916. SS50 in 1915
and $3.50 in 1914
Although Shattuck's production will
De materially smaller this year than
last. due 70 labor troubles and scare
ito OF labor. its earnings should be
considerably in excess of dividend re-
quirements- In addition to its COP
per ORES the company has large re-
sources OF leSd-silver ores from which
its shipments always are increased
when the price of lead is high.
As a result OF the general depreS-
sion in the stock market and the re-
d0ction in its dividend ShattGck stock
has declined TO around SIS. This
price represents less than half lis
reasonably assured value and not
more than IS per cent OF its probable
ultimate value. The company closed
the year 1916 with : net balance Of
cash and quick assets equal to s7.75
for each share OF stock Outstandind.
or more than SO per cent of the
amount for which its stock is now
selling. Those who are DESTROYS o.
picking up relatively safe stocks win
big speculative possibilities viii do
well 10 include Shattuck in their COZ
lections.
c. & a.
Calumet 4 Arizona stock sold down
to $50 this week. This price gives
the 64l.e6O shares outstanding
market value OF only SIS. S4S.960. This
year the company has paid $7.OSl.Sso
in dividends. that is. Sll share.
equivalent TO Is per cent on the cur
rent market price Of its stock.
The SlSSsl shares os New COrnelia
stock owned BY Calumet 4 Arizona
is worth at $lS5o. its current price,
Sls,i0s.0SS. On Dee. 81. 1916. CalO-
met L Arizona also had in its trea-
sury SS.lO0.0Oo OF New Cornelis bonds
$SS7.SO0 OF Tucson. Cornella & CHA
Bend railway stock AZ cost. S5tS.sl6
OF Sundry Investments carried also ~
cost and net surplus OF cash and
quick assets OF $6.7SS.s95, The total
OF these items is $SSlsO.474 and they
do not include any portion Of Calumet
x Arizona'S mining properties In the
Bisbee district. which under normal
are able to produce 7S.eo0
600 pounds of copper annually at 4
cost OF seven or eight cents n pound.
or its 100000 smelter OF Sll60.0o0
sulphur,c acid plant. Yet these mines.
plants and the ssS.lso.474 Of other as
sets enumerated are selling in the
market today for only $SS.S4s. go.
Il is understood TO be the Judgment
Of leading interests in Calumet 4
Arizona that its Bisbee properties. re-
duction plant ard working capital to-
gether have an actual value OF at least
$50 900. 600 or S60.000.0oO. Under
conditions the company pro
duced its copper at a cost Of seven
TO eight cents pound ard with its en-
larged productive capacity il is likely
again 10 earn from its own direct
$40 share annually on y
Is cent metal market.
Mining men in Arizona are en-
thusiGstic believers in the future %
New CorneliS in which Calumet 4
Arizona now has a $4,000. 000 interest,
They were buyers Of New Cornelia
stock n few months ago at prices as
high as SIS share Reports state
that New Cornella produced approx
imately 4.000.0 600 pounds OF copper In
indicating PRODUCING
capacity OF 45.0O0.000 10 tS.00o.oee
pounds annually. and that the cost OF
its copper was around Sis cents a
pound. This must be taken as suS-
costing strongly that New Cornelia
viii be In position within year to
begin paying dividends and that on
sSl cent copper il viii earn SpproN;-
mately IS share for the 100000
shares now outstanding. II il fails TO
begin paying dividends next year Il
probably win be due 10 determination
by its management to liQuidate the
bonded Indebtedness first.
ard this would result in the SS.lO0.-
600 which Calumet & Arizona has
loaned on its bonds being returned to
the Calumet & Arizona treasury.
In this time OF low prices and I'M
certainty IL is well for speculative
Investors TO pick two or three com
psnies that are in particularly
strong position financially and in ore
reserves and so situated that they are
certain 10 increase their
and other income in the fu-
ture. Ry having few such COM