Shoshone journal. [volume] (Shoshone, Idaho) 1884-1931, 1920-06-04


plot them afterward. il they're good
the West keeps them to itself and
pockets the profits; If 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 a second" in
terupted Angela, who had been idget-
ing and playing with her wrist watch.
"Dad-Mr. billiard This is awfully
interesting, but dinners in just a few
minutes. and"
PLENTY of time" said Cullen, wav-
ing her off. "Plenty of time Go
ahead Mr.. billiard. This is too good
to miss. Smoke cigarette for an
appetizer?
THANK you" billiard, having de-
cided to take complete advantage of
the present opportunity. marshaled
salient details as he held a match for
his host. We'll perhaps l can show
you best by an actual example. I'm
out of the game entirely, as said,
but / was invited a day or two ago
to join New York syndicate in
financing a property | appraised my
self in 1914. It's owned at present by
four boys with shoe-string apiece.
They can't finance it themselves, so
they need help, and they've come to
Wall street and whispered their Sc
cret through a megaphone. Now sup |
pose, just to make it clear all around,
a syndicate to underwrite the com
Dany" He was sustained by the re-
lection that even though he came in
he guise of nountebank, there was
lOthing dishOnorable about the wares
lie had brought to SELL
ooh" said Angela, joyously.
Z"
Simultaneously her father gave her
little frown of affectionate remon-
trance, and billiard gave her little
mile of affectionate esteem.
Nov, the boys who own it," said
illiard, ARE in such straits that we
IN practically dictate our own terms.
don't mean to imply that we'd take
o great an advantage of them, but s
S a plain case of supply and de-
and and we're naturally interested :
a bargain. We go over the mine
ry carefully, and find that although
isn't actually producing any copper -
st yet. because the owners ran out
money before they could get that
r. 1t has enough ore reserves to v
arantee at least ten thousand tons
year for twenty years, provided the
cessary equipment is bought and put W
o operation. That tonnage. with the
ce of copper where it is now
'und thirty cents-and the cost of
'duction what it is now, and other he
tors what they are now would br
mean a net profit of about tai
lnarter of million dollars a wear teC
first we have these present owners let
anize corporation, capitalized at the
million dollars" If
'ullen smoked violently, and looked the
lied. sci
You're getting out of my depth. ket
a do YOU arrive at thatY ket
That's so as to insure ten per cent leg
deuds. And the mine can pay ten cal
cent provided we can arrange to pri
the capital. You see, Mr.. Cullen, frs
PIPER mine isn't like a factory. and the
can't figure it the same way. be- eve
e a factory runs on indefinitely AND
II you simply replace the ma. and
cry whenever 1t wears out there's or
ing to prevent the same plant The
keeping on making the same sort lies
roduct for hundred years. But Is
Y pound of ore you take out of mar
leaves thar much less for the and
re- and eventually your ores 20. mad
10 be all gone. And if this par witt
ar mine is going TO be exhausted Bees
bout twenty years, II stands 10 bach
m that it's being exhausted at the Al
Of one-twentieth, or five per cent. trica
mr.. You must take that always Inter
consideration. And therefore sagg
stakeholder is entitled to get tain
al least eve per cent OF his none
s each gear 20 cover that de. sion
u on IN addition % whatever he lowe,
10 sei for ordinary profits which Man
'ther i've PEI cent Otherwise" mana
= | seel" err ed Angela. but ,
owe itP commanded HilHard In.
lily worl'
~ + the company just paid five 'nsly
'ni Tor twenty wears. and go a. III
y. your ore was all gone. IN, pose
would only just have GOT their IT
baek- and thel wouldn't ha,. ~ Sli
ahl real profit 90 an" II
toly. said billiard $50 The ,neFe
O., mast ply az least ten per mere
BAR iof bona dde dividends and %
. depwcauon oellp
y said culloD, opening his ~, ~
rs ihi Nhs The big n,niue s U,ui
A taA surh ius diVideHdst WIZ, wy,
Z was an clear profit" ~ ~