The Dolores star., 1920-09-10

aS anything else The trouble comes
III showing when a mines n mine and
"heh It's a swindle. and | guess Won
nave 10 be metallurgical shark to
N""" 'hat anyway. But the way things
nave been going for the last year or
Two, with all this speculation in the
,"e'a's' and all the fortunes that have
oeeil made. sort of set me to thinking
mat with good advice. you"
l Deg your pardon" said HiIliard
quickly. There's been mighty little
speculation In metals, Mr.. Cullen: but
'hereS been tremendous amount of
speculation In stock. The difference
between West and East. the dirrer-
ehce between insider and outsider;
'he dlnerence between the capitalist
and the gambler is this-the East.
'he outsider and the gambler buy
STOCK; the West. the insider and the
'ap''aIISt buy mines. Buy them out
riGht and develop them first and ex-
pioIt them afterward. II they're good,
'h' west Keeps them to itself and
POCKETS the profits; II they're shaky,
me West sells stocks to the East. and
gets Its profit that way, and calmly
steps out from under The art and
Ncl"hce OF underwriting ;"
Now you just wait second" in
tcrrupted Angela. who had been tidget-
ing and playing with her wrist watch.
"bad-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.. HIlIIard This is too good
TO miss. Smoke Il cigarette for an
appetizer"
THANK you" Hilliard, having de-
cided to take complete advantage of
ihe present opportunity, marshaled
salient details as he held n 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 l appraised my
self in 1914. It's owned at present by
| four boys with ShOe-string apiece.
They cant 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 1t clear all around.
that you and and Angela are to form
II syndicate to underwrite the com
/ pany." He was sustained by the re-
Election that even though he came in
the guiSe OF "A mountebank, there was
nothing dishonornble about the wares
he had brought to sell.
"Ooh!" said Angela. joyously,
"Thanksr
simultaneously her father gave her
little frown of affectionate remon-
STRANGE, and Hilliard gave her a little
smile OF atfectionate esteem.
Nov. the boys who own It," said
! Hiliard, 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 a bargain. We go over the mine
very carefully, and find that although
| Il isn't actually producing any copper
| lust yet. because the owners ran out
OF money before they could get that
! far. 1t has enough ore reserves to
guarantee at least ten thousand tons
A year for twenty years. provided the
necessary equipment is bought and put
into operation. That tonnage with the
price rf copper where 1t Is now
around thirty cents-and the cost of
| production what II is now, and other
| fortors what they are now would
eventually mean a net profit of about
| II quarter of a million dollars year.
| So first We have these present owners
organize II corporation, capitalized at
two million dollars"
Cullen smoked violently, and looked
puzzled.
"You're getting out of my depth.
| How do YOU arrive at thnt!
"Thnt's so as to insure ten per cent
| dividends. And the mine can pay ten
per cent. provided we can arrange TO
,.t the cnpttal You see. Mr.. Cullen.
n copper mine isn't like factory, and
Il
,ou can't figure II the same way, be-
cause factory runs on indefinitely,
md If YOU simply replace the ma
cbinery whenever ii wears out, there's
nothing TO prevent the same plant
from keeping on making the same sort
of product for n hundred years. But
averv pound OF ore you take out Of
,,a Ia,y,s that much less for the
futur. and eventually your ores 60
,,g to be all gone. And If this par
,,cular mine IL going to be exhausted
f., about twenty years, II stands to
raoson that It's being exhausted at the
r,t. Of one-twentIeth. or five per cent
n wear. You must take that always
,rto consideration. And therefore,
avery stockholder is entitled to get
| ,,ck Mt least five per cent or MS
n,,,ev each year to cover that de-
nrecintIon. In addition to whatever ne
nr.ht 70 get for ordinary profits which