The L'Anse sentinel. (L'Anse, L.S., Mich.) 18??-current, 1920-06-18

as anything else. The trouble com,
In knowing when mines a mine. an
when it's a swindle. and I guess 70
have to be a metallurgical shark I
know that anyway. But the way thing
have been going for the last year G
two. with all this speculation In tn
metals. and all the fortunes that hav
been made. sort of set me to thinkin
that with good advice, you"
Il beg your pardon" said Hilliar
quickly. There's been mighty littl
speculation In metals. Mr.. Cullen; bu
there's been a tremendous amount o
speculation in stock. The differenc,
between West and East; the differ
ence between insider and outsider
the difference between the capitalist
and the gambler Is this-the East
the outsider and the gambler buy
stock; the West. the insider and the
capitalist buy mines. Buy them out
right and develop them first and ex.
plot them afterward. II they're good
the West keeps them TO itself and
pockets the profits; IL they're shaky,
the West sells stocks TO the East. and
gets its profit that way, and calmly
steps out from under. The art and
science Of underwriting :"
Now You just wait second" in
terrupted Angela, who had been fidget-
ing and playing with her wrist watch.
"Dad-Mr Hilliard This is awfully
interesting, but dinners in just few
minutes, and"
"Plenty of time" said Cullen, wav-
ing her of. "Plenty of time! Go
ahead, Mr.. Hilliard. This is too good
to miss. Smoke cigarette for an
appetizerT'
Thank you" billiard. having de-
clded TO take complete advantage Of
the present opportunity, marshaled
salient details as he held match for
his host. We'll, perhaps can show
you best Ivy an actual example. I'm
out of the game entirely. rs I said,
bat ] was invited day or two ago
to JON d New York syndicate in
financing a property l appraised my
self in 1914. It's owned at present by
four boys with shoe-strng apiece.
They can't finance 1t themselves, so
they need help, and they've come to
Wall street and whispered their Sc
cret through megaphone. Now sup
pose, just to make it clear all around,
that you and and Angela are to form
a syndicate to underwrite- the com
pany." He was sustained by the re-
Election that even though he came in
the guise of mountebank, there was
nothing dishonorable about the wares
he had brought to sell.
ooh" said Angela, joyously,
"Thanksr
Simultaneously her father gave her
a little frown Of aifectionate remOn-
STRANGE, and billiard gave her q little
smile Of affectionate esteem.
"Now, the boys who own itS said
billiard, are In such straits that we
can practically dictate our own terms.
don't mean to imply that we'd take
too great an advantage of them, but
it's plain case Of supply and de-
mand, and we're naturally interested
in bargain. We go over the mine
very carefully, and find that although
1t isn't actually producing any copper
just yet because the owners ran out
of money before they could get that
far, II has enough ore reserves to
guarantee at least ten thousand tons
q year for twenty years. provided the
necessary equipment is bought and put
into operation. That tonnage. with the
price Of copper where II is now
around thirty cents-and the cost Of
production what II is now, and other
factors what they are now would
eventually mean a net profit of about
n quarter of million dollars q year.
SO first we have these present owners
organize corporation. capitalized at
two million dollars"
Cullen smoked violently, and looked
puzzled.
you're getting out Of my depth.
How do you arrive ut thatT
That's SO as to insure ten per cent
dividends And the mine can pay ten
per cent, pTONlueu we CuIi uTTunHe 10
get the capital. You see, Mr.. Cullen,
a copper mine isn't like a factory, and
you can't figure 1t the same way, be-
cause factory runs on indefinitely,
and II you simply replace the ma
chinery whenever 1t wears out, there's
nothing to prevent the same plant
from keeping on making the same sort
Of product for hundred years. But
every pound Of ore you take out Of q
mine leaves that much less for the
future, and eventually your ores go
ing to be all gone. And II this par
ticular mine is going to be exhausted
IN about twenty years, II stands to
reason TINT It's being exhausted Mt the
rate OF one-twentieth, or five per cent,
4 year. You must take that always
INTO consideration. And therefore,
every stakeholder Is entitled to get
back at least five per cent Of his
money each year to cover that de-
probation. in addition to whatever he
,ught TO get for ordinary profits which
8 another five per cent. Otherwise
"Ohi ] seei" cried Angela.
"Prove itr' commanded billiard In