The Wallace miner. [volume] (Wallace, Idaho) 1907-current, 1922-06-08
CALLAHAN LEAD ZINC
DEVELOP NEW MINES
DOUBLE CAPITAL STOCK
Action of Directors in New
Opens Interesting Field
for Speculation

Tor speculation
"HE ACTION of the directors of
the Callahan Zinc-Lead COM
pany at the meeting in New
York last Tuesday in voting To
double the capital stock as "a means of
financing the company for the purpose
OF acquiring, equipping and develop
ing new properties has created much
interest in the district and has led to
much speculation as to what proper
ties the company has in view. The
information regarding the action OF
the directors came in a special mes
sage to the Miner from John Borg,
president OF the Callahan company
dated June 6, in which he said.
Message From Borg.
THE directors of the Callahan Zinc
Lead company met here today and
voted to increase the capitalization
from 100000 to 100000 shares. The
stockholders are to be given the right
to subscribe to part of the new issue
in any amount and at price to be an
nounced after the increase has been
authorized at special stockholders
meeting, to be held on July "a. The
proceeds of the new financing are to
be used for the acquisition, develop
ment and equipment of new proper
ties. The present condition of the
treasury is excellent, with sufficient
cash on hand for more than three
years requirements on a basis of the
present maintenance operations. The
company has no indebtedness aside
from current accounts payable"
Make Mine of GaIena.
Recent development work on the
Galena has apparently proved a large
body of commercial ore, while the
continuation of the present work will
explore virgin ground of even greater
mineral possibilities. Control of the
Galena Mining company Qormerly the
Chicago Boston, is owned by the Cal
lahan company. Following the ac-
QUESTION of the property the Callahan
company advanced funds aggregating
100000 for the purchase of additional
ground and for development purposes.
almost half of which has since been
returned through funds raised by as
Isessment. In the absence of informa-
/ ton on the subject and in view of the
promising outlook for Galena, it is
believed that this is one of the prop
critics which will be developed and
equipped through the financial plans
mentioned in Mr. Borg's message. The
development of Galena has been un-
der the direction of c. w. Newton
manager of the Callahan company
and it is known that upon his depart
ure for New York to attend the meet
ing of the directors he was decidedly
optimistic regarding the future of the
property, and his optimism was fully
shared by d. A. Callahan, also a di-
rector in attendance.
Other Possible Properties.
During the past few weeks reports
have been current that the Callahan
company had taken over control of
Marsh Mines Consolidated though
there has been no confirmation of
these reports. 1t is known, however,
that the recent rapid advance in the
price of Marsh stock was due to this
report and that John Borg & Co,
brokers, were handling a large block
of the stock in the east. If it is true
that the Callahan company has taken
over control of the Marsh, it would
naturally follow that that would be
one of the new properties to be de-
veloped and equipped.
The Callahan company owns the
Nipsc which has already been con
siderably developed through the Cal
lahan workings though not to an ex-
tent contemplated by the company. II
is regarded probable that further
work will be undertaken under the
plans now announced 1t is possible
that the Blue Grouse, another prop
erty controlled by the Callahan COM
pany and joining its holdings may
also receive attention.
Callahan Outlook Better.
The past few weeks. have witnessed
a notable advance in the price of Cal
lahan stock, which may have some
connection with the plans of the COM
pany now made public. The advance
may also be due to some extent to
the more favorable outlook for zinc
and the possibility that the mine may
be active before the summer is over.
The Callahan closed down on Novem-
Der l. 1920. a little more than a year
and half ago. The cause of the shut
down was a combination of high min
ing costs, low metal price and excess
i've freight rates. All of these are now
more favorable. and the steady ad-
vance in the price of zinc, now 5S5
cents per pound. encourages the hope
that Callahan may resume production
before many months