The Wallace miner. [volume] (Wallace, Idaho) 1907-current, 1919-10-30
SUCCESS DIRECTORS
TO ISSUE A REPORT
Difficulties Shown
That Cut Out
Profits
CONTRACTS COMPARED
Showing of Ore in the Mine
Assessment Levied and
Why Necessary
CONTRACTS COMPARED

~ to the stockholders of the
n Success Mining company by
the officers and directors
which win show the condition which
forced the suspension of operations
and which have since developed to
make profitable operation impossible
until more favorable adjustment of
authorized at a meeting of the direct
ors last Monday, all of whom being
present. namely; Franklin Pfirman,
president; James f. Callahan, vice
president; Herman j. Rossi secre-
tary- treasurer, all of Wallace; M. L.
Mahoney. of Burke, and w, r. Mullen,
formerly of this city, but now of
Hamilton, Mont AT this meeting an
assessment of two cents per share
was levied which is expected to bring
$4,000 into the treasury, there being
100000 shares outstanding. In ex-
PLANTATION of the assessment the di-
rectors state that when the mine clos
ed down on the fifth of last February
the company was in debt approxim-
ately $4,000 Some of this indebted
ness must soon be paid and 1t was de-
cided that the best business policy as
we'll as a matter of fairness to all the
stockholders, was to levy an assess
ment that would clean up the debts
entirely. 1t is pointed out that the
expense while the mine is idle is
about $700 per month, which is re-
quired to keep the property and the
affairs of the company in good shape.
The company carries fire insurance to
the amount of $1O3,5OO. A watchman
is kept at the plant state and federal
taxes must be paid, and an office
maintained to handle necessary cler-
ical work. Against these expenses
the company has received small roy
atty from leases of the upper work.
ngs, but not sufficient to cover ex-
penses. With the overplus from the
assessment after paying all debts the
directors estimate that the company
will be free from debt for quite long
mediate action when conditions war
rant resuming operations.
Bad Market Condition.
The report will show that when the
previous assessment was levied on
December 20, 1918, the price of zinc
was 1855 cents, a figure much lower
hot al that Of nt
The directors hoped that the depres-
sion would prove only temporary and
that there would soon be a recovery,
accompanied by better metal prices
and lower costs for material and la
Dor. However, after running until
February 5, 1919, at a continual loss,
and the market for zinc having drop
ped to 6B cents, operations were
suspended until conditions were more
favorable. I'm view of the uncertain
ty, the mine was allowed to fill with
water This action was justified, the
directors say, as the cost of unwater-
ing the mine win be less than 1t
would have cost to keep the mine
pumped out even to this time, and the
market for zinc is worse now than
at the time of the shutdown.
Market Past and Present.
In order that stockholders may
know the handicaps against opera
tons at this time, the directors quote
net returns from shipments under
former contracts when prices were
near the present level and the net re-
turn under recent offers to buy:
Spelter at 81, st. Louis, 40 per
cent zinc to us $23.5O under contract
OF May /, 1913; $13.56 under contract
of May l, 1916; $4.S6 under offer of
August 20. 1919.
"Spelter at $3.50, st. Louis, 40 per
cent zinc net to US $3.50 under con-
tract of May /, 1913; 1851 under
contract of May 1, 1916; $7O6 under
offer of August 20, 1919.
"Spelter at So, st. Louis, 40 per
cent zinc net to us $3.50 under con-
tract of May l, 1913; $1S06 under
contract of May 1, 1916; s1126 under
offer of August 20, 1919
"There are 500 pounds of zinc in a
ton of 40 per cent ore, which is worth
$50 with speter at Z cents per pound.
Under present conditions we are Of
fered $4S6 for the ore with the mar
ket ait this price, or S6S per cent of
the speher value. At ~ cents per
pound the zinc In ton of 40 per cent