| Show the Smelter Trust its the Mining Ml Mi Ian In hi I Utah To the Editor of The Herald I have read rood the various articles pub published published in The Herald following the pub published pt b statement of the Utah Consoli Consolidated Consolidated dated Mining company company Highland Boy Bo Boand and the following thoughts are sug suggested su The gross value per ton of j Highland Boy ore is given at 13 2 per I ton in actual recovery value The net profit is given as this being about 52 53 per cent of the ilie amount recovered may be considered as satisfactory ati and assuming that the profit of the Utah Consolidated ted is all applied upon divi lend payments it would amount to per month or per annum The Utah Consolidated I Highland Boy BOJ is stocked at shares of ot the par value of 5 total 1 i It is quoted at 30 00 per share I malting making the market value It If Itis Itis I is therefore apparent that a dividend payment of would amount to 35 i iper per cent of the face value of its stock and 5 per cent of its market value The Silver King mine of Park City i Utah Ut has a share capital of and Js s selling at a little over I Its Its ts dividends amount to 30 per cent of or orIts Its share capital and 12 per cent of its I market value and these are the best I records r to which the mines of Utah Utahan can an refer The next best bet showing is isby isby I by the which Is at present paying 4 per annum upon a capi capital i ital tal marketable at and the dividend Is at the rate of G C 23 per percent per percent percent cent per annum Compare this with the tle results of the smoker smelter trust as shown in your Jour article articie of Oct 13 when the whole capital required is but and of this amount is cash invested in ores and bullion in transit and the he profit is shown as being roundly 1 per annum or over SO per cent per annum on un the outlay necessary to conduct condu t a smelting plant of 1000 tons capacity daily dally The smelter trust will point to its enormous outlay for smelt smelting smelting smeltIng ing plants in Salt Lake valley alley and this together with the water added in the shape chape of common stock has resulted in inan inan inan an imposing capital of pre preferred preferred preferred stock and an equal amount of common stock or a total of paper value of f It is true that in order euler to form the trust it was necessary to o purchase all the old cats and dogs doSS and capitalize all th s experiments and failures fail Ures of all the ven or companies during the past thirty years yearn and the trust now asks the pay a ar reduction r charge that hat t will them dividends on this great 2 investment nt at 8 per cent per annum when it is perfectly safe to 10 say that the whole plant can be reproduced in better ma material mat t rial and made to t do Its fth work better ti with an outlay of oper cent of the face f ce value v lue of the trust securities sec The smelter trust tru t is i giving ample ce of this his fact right here in Sat Lake val valley valley ley icy by the n of an entirely new smelting plant which will result in the tho abandonment of old Germanie San Sandy Sandy dy and nd Hanauer Han plants The natural na query q ery is lY did the trust take these worthless ss plants into Its fold Was Vas it as a rental for these old smelters for the short period of a year or two or was it perhaps for the pur purpose purpose pose o restricting ot COmpetition in hr lr bid bidding bidding ding for ores and controlling o trade and labor conditions It t seems to the writer that the ore producers are up against the real thing in ln Utah We have a trust and one tha that Is likely to exert esert a marked influence upon the future fut rede de development development of Utah mineral resources unless unIes s the producers of the state or organize organize an independent in smelting com corn company companY pany and treat their thel own ores and af after after a ater ter paying paling 12 per cent dividends livid ends upon all aU necessary capital for construction and nd the such an enter enterprise pulse prise they will sate sae saVe themselves the further sum of about calculated ed oct upon basis of present resent Utah output I and equal to about 10 per cent of its value What business is there ther that I can c n overlook a 10 per cent profit and till still expect to prosper Is this not the I best opening possible for the Invest Investment I ment of or Utah capital in a home in industry Th cry among mong our people is keep your Jour money at home patronize I home industries this appears ap ars to be bethe the t e time when the moneyed men and ore producers can expend a small part of I their reserve capital in a way that will not only yield a handsome revenue that j I will be permanent In character but will wil willI wilI I encourage courage the prospector to go ahead with the work of discovering mines so soi i bravely begun in jn 1895 but which has about died a natural death under theder the tender der nursing of the foster mother of the mining wining industry the smelter trustS tr L |
