OCR Text |
Show Jue The Western Mineral Survey. June 3. 1955 Page Two Raps Critics Of Penny Stocks WESTERN MINERAL in News SURVEY - Advertising . ClremUtio Cbveh StrMt Fhom Ball LaJu City, Utak DENVZR BCKUV Neva - Advertising Klttredge Bldg. m NORMAN . Clwalaflan Goto. LEVINE 1878. Bureau Chief MERGER BISMARCK, NABOB mining companies and cap. tured the uranium spotlight this week. Initial results from their Western Mineral Bur-Pleaae rqr when writing to adrertlaera. idm joint ventures in Utah indicate tialnr ratea on application. they are having the best luck of of the Coeur dAlene district any Publisher Harry B Miller JAR EX K. MeCORMICK Edltar mining firms since U & I UraO. D. QUINLAN Feature Editor nium hit the jackpot. FRANCK JENKINS. Air. L. M. HILL Centrfbntlag Editor THEY HAVE PAID the rate For the newa of moat algnlflcance In of $440 per ton for an the mining and oil world. All newa appearing In the Wcotom shipment of 3440 pounds of uraMineral Surrey la obtained from aonroea nium ore sacked from the surface bellered to bo reliable but no la aaaTimnrt for aocuracy of state- of their 74 claim Blanca group ments. north of Moab. The ore averaged 2.78 per cent uranium oxide and Reproduction of any material from thla publication muat hare written samples assayed up to 3.79 per pennlaalon from tbs pnbUaher. cent. (Average grade shipped from the Colarado Plateau area is said to run about .30 per cent uranium oxide. About 4000 more pounds have been stockpiled and geologists now think the material has been eroded from a fissure vein. The ordinary deposit on the plateau is found in pods or lenses . . . Commerical ore Officials of Mayday Uranium also has been found in the first Company are visibly disturbed two holes drilled on the Dead at the tremendous short selling Horse group of 82 claims southof their securities by Salt Lake west of Moab. The holes were City brokers. They intimate it drilled horizontally into a canwill require an organization of yon wall High grade float has been found in clean brokers in Salt Lake City, a officials of bulldozing an access road. "Piccooperating with ture Rock samples from each company whose stock is being shorted, before a healthier situa- property can be seen at the Spotion may be expected. kane brokerage offices of StanThe suggestion thas been made dard Securities Corp. that, if each Salt Lake City LUCKY FRIDAY Silver-Leabroker were to put $5,000 into Mines declared a extra a pool to combat the practice, dividend of 5c a surprise share, payable the short selling could be wiped June 24 to shareholders on the out. It is the belief of Mayday books 7. June The $65,324 disspokesmen that a good market bursement will bring to $625,472 would result in Salt Lake City the amount paid stockholders by with everyone making money, the Coeur dAlene district firm. including the public. Mayday of- The firm has been paying a ficials say it is either a question nickel a share of the brokers cleaning house or since 1951. It will be in a posigoing out of business as some tion to step conup underwritings are already going siderably when production its new shaft to the East. raise is put into operation. The It is estimated there are 33 raise is within 140 feet of the brokers in business in Salt Lake adit tunnel. Golconda with 0 City, 10 of whom are believed to shares of Lucky Friday, consistently play the short po- which they carry at 10c a share, sitions. is the largest individual holder. There is no doubt there are SIDNEY MINING CO. is negoseveral million shares short in Uranium Mayday Company tiating for a .very promising stock alone," officials of that Bnbecrlptloa 13 no ratea; for one rear. 8.00 for two yean; 1 reoponat-billt- y Editorial . . . Shorts Harass Mayday copper-uraniu- m d semi-annuall- y 110,-00- company said. They pointed out that after an , average penny stock reaches .02 cents, the short-sellin- g horde feel safe in dumping in anticipation of driving the stock back to .01 cents, and will then deliver the stock substantial profit for themselves on the differential. Mayday officials say NO AMOUNT of covershort of the ing position in their stock has taken place here thus far. It was pointed out by Mayday officials that under fed300,-mark- et comment of. one officer of May-dawho added that "the professional man referred to intends to complain to the SEC in order to get action." y, Utah uranium prospect which has some production; also for more property in the Spokane area. Bulldozer trenching is under way miles on half section about 1 ResIndian north of the Spokane home of the Midnite uranium mine. The property is said to have geological character istics similar to the Midnite . . . mine in the The Sidney zinc-lea- d Coeur dAlene district again is making money. Net operating profit was $39,759 in the first quarter, and earnings in April and May have shown further improvement. ervation, MASCOT MINES and SIDNEY have had moderately encourag- ing results in two holes drilled in their Alto claims in Colorados Gateway Mining dirtrict and are planning additional drilling. AT THE DAYBREAK URANIUM property near Mount Spokane, the Atomic Energy Commission is starting a second hole at a angle. The mining fraternity will watch this hole with great interest. Hole No. 1, bored at a angle from he surface, went down 125 feet. Best ore reported in the last 10 eet. Autunite was recovered for about half the total distance. Uranium oxide content has been estimated at 2 per cent. Exploration work is being started on other Daybreak ground, the Schaefer lease, about six miles to the west, where good scintillator readings have been taken. Daybreak shares shot ahead to around $1 before easing off somewhat, but are climbing again. 65-degr- ee 45-degr- 1 the Editor) (This article does not necessarily represent the opinion of Pla-:ea- u A group of investment bankers inspecting the Colorado visualized recently commented if other financial groups he uranium empire of the world with the same reaction felt by he visiting bankers, the criticism of penny stocks would cease abruptly and unified support be accorded to a great industry. It is simply beyond comparison to evaluate the uranium potential deposited in the Plateau area. Critics of penny stocks are prone to overlook the fact that the strength of an institution like the Red Cross obtained its foundation because of five and ten cent donations, which ulti-- . mately mounted up into millions of dollars. It is easy to criticise when one lades knowledge and experience, yet the objection of a single critic often appears to outweigh the opinion of a throng of boosters. Although a good thing, the association, now organizing among brokers and mining interests of Utah, lacks one great objective. It ought to have been organized for Utah members only. The honesty and integrity of brokers and mining executives here is beyond reproach. This is testified to in the fact that Utah Securities commissioner, Milton Love, has never received a complaint inimical to a Utah firm attempting to develop uranium. Yet why should this assotiation be affiliated with a na- tional organization? Let the national organization copy Utahs methods of doing business but by all means let Utah maintain its sovereign leadership. In my opinion, Utah brokers are surrendering their sovereign rights to a national organization honeycombed with brokers of other states, whose involvement in Canadian enterprises is out of step with the rules and regulations of the Securities and Exchange Commission and the Utah Securities Commission likewise. Broker commissions in Utah are lower than in other states. Brokers are compelled to buy sparingly here, conforming as they do to the rigid demand of the Utah Securities Commission as to full disclosure of finances to the prospective investor. Out of state capital seeks Utah uranium companies recognizGRANDVIEW MINES has one ing a national future in die uranium industry. This has been crew and Phelps Dodge has two proven thus far, with a tremendous enhancement in property crews running radioactive sur- values incident to discovery of untold mineral wealth in Utah. veys on their leased ground north Other states do not share this sudden' mineral growth. of the Midnite mine. Grandview shares dominated trading among listed stocks. Lucky Friday anc Golconda were also strong spots SUNSET MINES, a Coeur d Alene district zinc-lea- d producer which has been having tough sledding since the price of zinc went into its skid, perked up sharply in the last couple of days. Demand for the stock was good from Seattle headquarters of the company. It was rumored that the firm has acquired a property in Ferry county, Wash., which con- Officials of Mayday declared short selling is viciously directed at stocks of firms like Mayday, because there was no free stock handed out in the beginning and no officer or director held options to buy stock. They declare tains some quite radioactive pegstock that was shorted has never matite. been delivered, and urge the FOREIGN SILVER, moving up to demand their stock in public must a broker eral regulation, for the fourth time in two weeks, order to protect themselves. legally declare himself in a reached 90.25c an ounce highest short position. Officials of May It was pointed out by officials level since 1920 when the metal day also hinted that some of the that usually short selling starts short selling is coming from at .02)4 cents, is resumed at .05 sold for $1.37 an ounce. World brokerage offices in California. and continues from there on up price now is the same as that Mayday officials tell of a to 10 cents. If the short seller paid domestic producers by the prominent professional man who misses it at .05 cents, a frantic U. S. Treasury Dept. placed an order with a prominent attempt is made to hold the broker early in the week to. pur- stock in check. When it hits 10 SUNSHINE MINING was chase a certain amount of May cents, officials declared, some strong and active today, and adDay stock, after it was driven down to eight cents. lie of the "shorts" get scared and joining silver properties (Sun, Con, Silver Syndicate, Big Creek then reported to have confirmed try to "cover." his order and attempted to purThe complaining, officials es- - Apex, Polaris, Silver Dollar and chase additional shares. When Metropolitan) could be favorably he dispatched a messenger to the flmate at least five brokerage affected next week. brokerage office to pick up the houses are known to be in a stock which had originally been heavy short position on Mayday ZINC hit a new high of 91 confirmed at .08 cents, the broker and five additional brokerage pounds in London today, equivaconld not deliver it. are 12.75 a houses lesser de in short U. S. lent vs. the going "Some brokers play with paper price of 12c a pound. and have too stock," was the free. SUB-STANTI- . By JAY WALTERS , Jr. President , Elaterite Basin Co. Daam, Entered aa seeond daaa matter at Balt Lake City. Utah, under Act of Karah S 3, 1955 Some of the states represented in the makeup of the new organization have adopted legislation in their respective states to increase the rates on com, oats, and soya beans, simply because prices were too low. Five years ago, in Utah, bulldozers, trucks and other mining equipment were a drug on the market, so to speak. That was prior to discovery of uranium in southeast Utah. Industries that manufacture this equipment are all thriving today, even though they are not manufactured in the western states. Eastern investors now readily extend credit for mining equipment. Some of the largest investors in uranium stocks are western bankers themselves. Why, then, gentlemen, do you merge with a group of outside security interests? Let us preserve our dignity under die sovereign rights and laws .of Utah instead of encouraging an association extended to other states, some of whom may have been a factor in contributing to the stringent regulations now proposed. Trouble is usually produced by those who produce nothing else. Utah produces uranium! If die business interests of Utah continue dean and above board, they can set an pramplA 0 Vmcf. ness integrity that all other states will be anxious to adopt in transacting business. Utah has ever been recognized for keen business sense since Brigham Young discovered it CHAIN Intermountain Areas Largest Stock Truck Parts ALL SIZES OF COMMON AND BI-TE- ST TWO CHAIN AND BINDEH CHAIN 14 rt. 20 Ft and 25 Ft with' Grab Hooks LOAD BINDERS AND HOISTS HAFER'S, Inc. 1563 South 2nd West Salt Lake City. Phone 84-43- 11 |