Yerington times. [volume] (Yerington, Nev.) 1907-1932, 1920-11-10
DROPPING PRICES
PUZZLE INVESTORS

Much attention III the professional
mining and market circles here is con-
verging on the break in the price OF
Broken Hills Silver Corporation stock
on the Stock Exchange. From a
high two months ago, of % cents,
the shares have recently tobogganed
to record low" of ten cents.
| In the face OF most flattering reports
from the mine, amply verified, and
very favorable reports as to the sue
cess to date oil the company's financ-
ing, a decline in the market has oc-
Cured which has carried the quoted
value of the shares down to fully four
cents per share below the price which
is now being paid to the company for
it S treasury stock by the underwriters.
| Whats the matter with the mar
ket?" is being asked on every side.
And there is no answer.
| When the Broken Hills Silver Cor
poration was incorporated in May OF
this year, 100000 shares of treasury
stock, or two-thirds of the companys
entire capitalization, were UNDERWATER
| by the Filedity Finance and Funding
| Company of Reno, Nevada. to net
the Broken Hills Silver Corporation
| IN average Of l9 cents per share. The
underwriting called for the delivery OF
| 100000 shares Of stock at II cents per
| share and additional 100000 share
| block at every one cent share higher,
! up to % cents per share. as and when
he company required the money, but
| not at a less rate than $4,000 per month
or mine development and additional
sums required Tor property payments,
l tic.
Since June the company has received
| ndcr this underwriting. as the money
money has been called for approx
mately $4,000. and the Fidelity Fl
lance and Funding Company, accord
ng to official statement, is now act
laally Withdrawing stock from the
| Broken Hills Silver Corporation
treasury and paying IA cents per share
| therefor
The residue of stock in the COM
pany's treasury. as yet un-issued to
the underwriters. is close to 100000
shares, equal to about 81 per cent OF
| the entire capitalization.
The Broken Hills Silver Corpora
ton on October 23rd made cash pay
n,ent OF $4,000 on properties under
| option and, according to official state
/ ment, there is no property payment
to be made by the company for the
/ next six months. Before thathalf-
year clapses, it is stated that the COM
| pany expects to pay the balance of
I $4,000 necessary to complete title to
IS Broken Hills. and Belmont mines
out of high grade ore actually pro-
duced. A fortnight ago the company
rallied on its initial shipment of high
grade ore which consisted of IS tons
OF a gross value oil $2l6 per ton, or
n excess of $1,000. Ore of the same
richness has since then been steadily
sacked for early shipment.
The Company's Belmont cross-vein
rom which initial production df $2l6
per ton ore has been made, has been
according to official information
kgrowing wider and richer as depth has
been obtained A winze, which has
just been sunk 80 feet below the bot
tom level Of the Belmont Incline-a
total incline depth of ITO beet is re-
ported to be the richest ore yet en-
! countered.
I Naturally, production of high grade
ore to date with the limited facilities
afforded by a windlass and the incline
prospecting shaft, has been accom-
olished with difficulties. 1t has beer
/ Of the makeshift variety strictly. 1t
has encouraged the management, how
| ever. to predict that the rate of produc-
ton OF the sensationally rich ore will
be multiplied when the new 4x7 per-
/ pendicular shaft, now being sent down
I by three shifts with the aid on a gaso-
line hoist. reaches depth of $50 feet,
and the vein is intersected at that
level. If no mishaps occur ample sto-
ping ground will be afforded then and
the new big perpendicular shaait will
offer facilities for quantity production.
The shaft is already reporeted to be
tdown about ! 10 feet and is going down
at the rate al three feet per day.
Besides all OF this, two new shafts
have recently been going down on the
Crown Point and Co Between claims,
Respectively. On the Crown Point a
vein of ore about foot WIDE assaying
S24 per ton at surface, is being sunk