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Show May 11. 19S6 The Western Mineral Survey. Salt Lake City. Utah Page 2 WESTERN MINERAL Editorial SURVEY Late Stab A mining infant. Hitting hard at the "vicious stock swindler" particularly those dealing in "penny stocks," the columnist did not overlook the and housewives." She innocent "but money greedy points out that of $55 million put into uranium stock issues in the last year, 95 per cent "already has been lost to investors." This makes the entire unanium market broker, producer and investor-lo- ok pretty rank. Such generality does not carry through. In a special report carried by the U.S. News and World Report, April 6, it is pointed out that uranium production in 1955 was an estimated 2.7 million tons, a jump of 1 million over the 1954 total. At an average price of $30 a ton, last year's uranium brought in a gross income of more than 80 million dollars to Utah producers . . . "nearly three times the 30 million dollars invested by those who bought stocks in the 200 uranium company in the state since the big rush began." Producers don't become "producers without some kind of financial backing. Financial backing, in an industry as youth ful as uranium, had to tome from such sources as the stock in vestor. With an $80 million income some of those stockholders, who put faith in "penny stocks," must be realizing something from their investment. A rough dig in the column hit the Securities and Exchange Commission stating "it (SEC) did not even begin to make noises about the scandals until a short time ago . . . Now, after most of SEC officials are raising their tiie damage, has been done voices. A bit late. Western stock brokers, miners and interested parties know the hassle the SEC has had to put up with. The SEC, ruled by basic mining laws as well as the rest of the industry, had and is having, its share of growing pains: " Reams of material is daily mailed from SEC offices in an attempt to keep up with the rapid growing industry. Changes had to be made in the law before the SEC could use their policing authority effectively. Lake area alone The number of brokers in the Denver-Sa- lt now stands at more than 418. The SEC has doubled its staff to keep up with the growing headaches. The SEC is just as worried as the columnist about fly-bnight companies and has spent the past three years warning the innocent stock buyer to use "common horse sense" to keep from being swindled. The basic difference between the SEC's warning and the columnist's is that they hope to see the small company, sincerely attempting to make a go in the uranium business, succeed. The h columnist suggests to the buyer to stay clear of the quick to estab of of stocks securities responsible, buy appeal cheap lished companies moving into the field. Without the small company, venturing into an unknown, un predictable speculative business uranium would not be in its present stage of development. Just now the big companies are coming into the picture. Anyone familiar with the lusty, booming, stumbling uranium market will agree with the columnist that all was not well and much still needs to be done. But, in the same way the oil market moved into "respectable circles," so must the uranium child. It will never walk if squelched by the protectorate. It wouldnt have passed the crawling stage without the aid of the small companies and their stockholders those hundreds not listed in swindler ranks, who gave it the initial support. get-nc- ... over-zealo- us Mining Company (Lessee to Eureka Corporation, Ltd.) 309.397 Shares ($10 Par) Controlled by U.S. Smelting, Refining & Mining, Richmond-Eurek- a owns and has an important royalty interest in the propat erties Eureka, Nevada, under development by Eureka Corpora- tion Ltd. SUMMARY ON REQUEST A. G. EDWARDS & SONS (Est. 421 CTBXTUULTION Phone EM Church Street ADVERTISING EM BOS 2608 Silt Ike 49 City, Utah Entered M aecond due matter aft Salt Lake City, Utah, under Act of Xareh 3, 1879. Subscription ratea: 88:00 for two for one jear. 13.00 yean: Pleaae mention Wei tern Mineral Sarray whan wrltinr to adrertiaera. Adrarr tlalnr ratea on application. Publisher B. MILLER HARBT rs y- Richmond-Eurek- a - KSWS The "flourishing" stab at the uranium industry made last week by a syndicated financial writer hit the western market as a rather belated wolf call. "Stock Swindlers Flourishing In Uranium Boom" the headline on Sylvia Porter's column was a bit antedated in the first place. The "boom" in the uranium business has settled during the past few months, to a steady roar. The "boom", the swindlers and other detrimental aspects of the uranium business, as any of the nations newest observer knows, were natural hanger-on- s wage-earne- 11 PRIM LORRAINE 1887) Members New Tork Stock Exchange 501 Lexington Ave.. New York 17. N. T. GAIL P. Editor CRXTCHLOW Contributing Editor L. M. HILL All newe appearing' in the Wei tern Mineral Surrey U obtained from aonroea believed to be reliable but no reeponatbU-it- y la awmmed for accuracy of atatementa. Reproduction of any material from thla publication muat hare written permlaalon from the publisher. A segment of the Big Indian Uranium district shows the cation of the Phoenix group of claims being developed by a lotri-par- ty venture. Deal Tri-Fir- m Phoenix Drilling Opens Western Silver-Leacorporation, Square Deal Mining & Milling and Uranium Mines, Inc., three Wallace, Idaho firms have started drilling their Phoenix uranium prospect in the Big Indian district, San Juan county, d Colo. Matches Missouri Says Commissioner TELLURIDE, Colo. Base rector of Western Silver-Leathe company completed three ex- als possibilities of the Telluride-Oura- y area drew enthusiastic ploration holes on the Phoenix 1955 in which penetrat comment here from a former property ed the Cutler horizon. Missouri state securities commet- d, Mineralization was enocunter-missioner. ed in each hole, but not in corn- Utah. "Missouri is a lead state, but previous drilling, Voltolini said, The first 1200 feet of hole will previous drillin g, Voltolini said, it has nothing to match this," said be drilled on the Angus No. 3 was concentrated on the Mac- John L. Spalding of St. Louis, and No. 4 claims in an effort to Tavish claim. who was securities commissioner determine the location of the big Lisbon fault, according to a WestROGER BABSON says in part for Missouri until he resigned ern Silver-Lea- d in commenting on the New York last fall to represent a large New official. The claims are located In the Market: "Too many people are York brokerage house. same general vicinity as the Ra- being advised to invest in the e, standardized Blue Chips." Invest- Spalding and Lew Larkin of don, Homestake's Alice and faments cannot safely be standard the Kansas Star staff were here the Cord and S teen's mous Mi Vida mines. ized. An investor should make to tour the Bradley lead-zin- c According to Gus Voltolini, di- - purchases according to his age, mine of Utaco Uranium, Inc., responsibilities, temperment, and kind of work in which he is which is starting operation this Tar Baby Stockholders the also inspected the engaged . . . (We heartily agree week. They at Utaco mill Ouray, which is Vote Par Value Increase with Mr. Babson a little spec- to be to test ore next week. ready ulation never hurt anybody). Tar Bab Mining Co., Salt Lake LUCKY FRIDAY reported a Spalding and Larkin were acCity, has increased the par value of their common capital stock 1955 net profit of $254,226, or companied here by Bill Hines of of to $1 per share and are reducing better than 19 cents a share, vs. Moab, Utah, secretary-treasure- r Utaco Uranium. Earlier 17 cents had for a about they outstanding shares from 2,000,000 $221,069 share in 1954. Ore sales were up visited the rich Allen No. 2 urato 400,000. The move was approved by to $913,059 from $861,872 in 1954. nium mine in Red Canyon, San Tar Baby stockholders. Accord- Current assets totaled $533,063 vs. Juan county, Utah, which Utaco is operating. ing to Tom Mc'Cue president, the current liabilities of $129,712. also made company the capital stock Annual stockholders meeting of the company will be held at 39 Exchange Place on June 4 at 2 p.m. to elect a board of direcLa-Sall- non-assessabl- e. tors and to hear annual reports of the company. Voting at the meeting will be based on the .400,000 shares of stock now outstanding. - The stockholders also changed Articles of Incorporation to permit cumulate voting for any one nominee for the office of S. L Firm Wins Interstate Electric Co., Salt Lake City, came in apparent low bidders this week a contract for construction of the new substation and additions to an existing substation at the national reactor testing station, Idaho Falls, Ida. The company bid was $681,567. The AEC operations office in Idaho also announced it has en tered into contract with the Ralph M. Parsons company, Los Angeles for architect engineering of new test facilities to be built in the reactor station area. Wadsworth Construction Co., Idaho Falls bid low with $124,600 on a contract for canstruction of additions to the "Spert" control area of the station. Wishes to thank their stockholders for their splendid response to the offering of MONTE CARLO URANIUM MINES, INC. The public offering was closed May 9, 956 and will gin trading in the near future. 1 be- FOR THE LATEST REPORT AND FURTHER INFORMATION ON MONTE CARLO URANIUM MINES, INC. WRITE OR CALL: James E. Reed Co. 8 EAST BROADWAY PHONE EL 50 Mid-Contine- nt Securities 300 ATLAS BLDG. PHONE EM SALT LAKE CITY. UTAH 95 |