Iron County news. [volume] (Hurley, Wis.) 1913-1950, 1920-05-15

Exactly" said billiard. $50 the
company must pay at least ten per
cent-half for bona fide dividends and
half for depreciation"
"oho" said Cullen. opening his
eyes. rs that why the big mining
companies pay such big dividendsY
thought it was all clear profit"
mo. sir. The dividends of a min
ing company have to be very high to
be attractive at all; they have TO
make good that depreciation Well
we make the boys incorporate. as
said. for two million dollars. on which
| we can pay ten per cent. I'll show
you what the setup looks like" He
wrote on the back Of an old envelope:
Capitalization 100000 - 100000
shares at $40 each.
Now. the company (and you must
| remember that SO far we haven't
| any official connection with IT'D. agrees
to take over the property. and pay the
! present owners for it with 10000
| shares of stock, and it also agrees to
| sell to YOU and Angela and me the
| other 10000 shares at dollar apiece.
or S120,000 of which we agree TO pay
/ half In cash. ana the balance in about
! ninety DAYS.
! Now then, we own 10000 shares
| for which we've paid, and agreed 10
pay $l30000, That is, we've under
! written these shares for a dollar
| apiece, and paid down half the umonnt
| Now lets begin to look AT it from the
| publlc's standpoint. Here's mine
with plenty of ore; and a company
! with cash enough on hand to begin
! producing at Il profit very soon--al-
| Though nobody pretendS that it's az
tually producing now. Ii has S60M)0
in the bank. and another $60. 900 due
| in ninety DAYS. Ii can go ahpad 9nd
contract for machinery and wor' men.
and II does and you and Angela ald
! are still letting the former owners
manage it, bu! since We r. IN ,wa roj
| of the stock, we either elect ourselves
as directors. or elect other neonla
whose names carry weight with the
! pubic, 50 that we can Away rect
| the general policy, and see that it's
| careful and conservative. From every
angle, then, financial and moral. the
| venture looks likeea big success. So
| you and Angela and | go to good
| broker, or to "A group of brokers' and
| make them proposition We con
| vince them of the value we have; we
/ let them send their own engineers out
| TO make a report, and as evidence Of
/ good faith, we pay all their expenses
! we let them so over our books. Every
/ things fair and square and above
/ b0a!G And we agree that these bro
| kerS will take some Of this stock OF
/ our hands TO sell to the public th,.-
/ cause they've got a selling organiZH-
| ton already established, and plenty Of
/ customers who look 10 them for adj
| vice. and it's agreed that theyn ray
/ us-Say. four dollars share for what
! they think they can sell The brokers
| then do some advertising. send out
! their circulars ana Bulletins and
pamphlets to their customers and sell
that stock to the public for anywhere
/ ilplH NiA ~ tt-It uptdIN SlliF'. 1 NUt
~ VIC la'''0 - 5''. '',''S''' VINE" ''e
.inh. 5onan 7'',,' '',',' ~ l'''S :"
-. 800 >.,N''''.'
49, $1,000 e. ,'r, u. 49, '''
49,, - 49, ''''''''N ~,
~" ~ - ,," "',,,
( .'','' - 80 '',.''' V,
I ~ ,''''' ~ "'e ''''"
1,'3ia. re- "'>''i' W." '''
-'' '''''' anu ''''''''' IL "''' ~ ''''''''''
/ capitalization 2oo0.Ooo-2oo0o0 shares at
$40
'log@ pau 10 "'d'''ou'' O. a.. .......
Stock sold to syndicate for
/ $4,000 ........................I2o ,ooo shares
n, an Ioo 49,.
/ We sell to brokers'. 49,. 3ooo shares
-
W. iea 1,,,a . '0e' s''fe'
ontion AZ & sn,scs o, ~ ooo etaror