Show BUTTE litigation compromised I 1 boston news bureau settlement by compromise of the suit brought against butte superior by the dark clark montana realty company through the batters lat elm orlu mine brings to a close a legal battle that for the past two or three years threatened to cost butte superior much of its valuable mining lands to say nothing of a big cash indemnity agreement to pay the dark clark interests however seals all papers in the case by the compromise butte superior loses practically no valuable mining territory but still retains the ownership ot of the rich black rock claim with full privileges on the rainbow lode the lode that has made the company one of the lowest if not the lowest cost producers of zinc in the country it is in this territory that butte butt superior mines its richest product ore that averages 15 per cent to 20 per cent zinc with great constancy it was far better to give up dollars than acres in the settlement of the dispute butte superior will probably make one cash payment within the next few days of it closed last las t year with net current assets over liabilities of and this must have been increased in some degree since so even though the company makes a cash payment of it will still have a treasury balance of more than sufficient for its needs butte superior at present is operating at little over 80 per cent capacity it showed a substantial pickup pick up in earnings in the second quarter of this year owing to advancing quotations while net profits of was not so large of itself it was a distinct improvement over the operating 1 loss of incurred in the first I 1 three thre e months of this year this improvement has continued into the second half of 1919 and the company is now earning at the rate of 5 per share per annum on its shares with increased production will come further diminution mi in costs there remains now only the agreement upon damages which butte superior must pay to the minerals separation corporation po ration ltd for the infringement of the batters lat oil flotation patents an accounting is now in progress in an endeavor to determine the extent of butte superiors liability and the amount of damages it should pay return of these findings is scheduled for october 29 but it may be months before a final accounting is made the system of accountancy is so intricate and there are so many technical factors entering into the case that the attorneys on both sides have settled down to a long job in the meantime there is nothing to prevent butte superior from renewing dividends when it sees fit in view of the length of time before final accounting can be had and the large working capital left even after paying the elm orlu tribute butte superior may in the not distant future consider dividends again |