Show THE MERCURS REPORT I Dividend Posted at Reduced I I Rate of 1212c a Share t I I MANAGER DERNS STATEMENT I Went Into the Whole Matter of Handling tho Ores nnd the Increased In-creased Cost Entailed The Chnnges in the Mill and the Hard Luck inV I in-V January and February The Prospect Pros-pect of Amalgamating1 with Do La Slnrs Mercur Properties Sacramento 1 Sacra-mento Report and Election 1I 1 Th < directors of the Mercur Mining I company met yesterday afternoon and after a protracted session posted a I quarterly dividend of 1Y cents U share or JoOCO payable on April 20th the transfer books haYing closed the previous pre-vious afternoon The disbursement of this sum will have increased the total I paid by the company to 1111000 That I the company had found it necessary to r reduce the quarterly dividend to 12 JI cents was a confession for which few wore prepared and while there was nne some adverse criticism upon the curbstone curb-stone the statement Issued by George Dcrn manager for the company should satisfy the shareholders that the weakness weak-ness is but a temporary one In this I I statement Mr Dern says The long and short of It Is we have not enough cash In our treasury to pay A 550000 dividend Our March payrolls have not been completed so I cannot figure the exact amount of the expenses during that period but I estimate that on the 20th of this month when the dividend Is payable we will have about 30000 on hand Reference to our annual an-nual report will show that on January I 15th we had 5I537C02 Hence w P not omily had no surplus but we lacked SbOOil of having enough to pay our January Jan-uary dividend This 3000 had to come out of the earnings of the first quarter of 1300 Since the date of the published statement we have completed our Improvements Im-provements and have paid out an ad ditional liOOO to 10000 on this account Changes were made In the mill In February adds the manager there was a shut down for a week and this curtailed tailed the earnings by several thousand dollars Then there was a run of hard luck at the mill In January and February Feb-ruary when for no apparent reason the values ran low Willie the price oft of-t 0 carloads of cyanide had to be paid out The mine earned Its full dividend says Mr Bern but the company was I unfortunate In net having a surplus with which to meet extra expense During the month of March the gross earnings amounted to 50000 and nt present they exceed 25 coits per share quarterly The management feels that r no trouble will be experienced Jn pay hug a 50000 dividend In July and continues the statement 1 have no doubt but that the Mercur could pay tliQi50000 this month and earn enough In the next quarter to make up tho de flcltand pay the full dividend In July In the first place however that would < not be good business policy and In tin second place we do not want to get our treasury Into that sort of condition with the prospect of amalgamating the Mercur 1 with De L Mars Mercur Mines company We have not done I much talking about the mines lately but It Is only fair to inform the stockholders stock-holders that the physical condition of time pmoperty has greatly Improved during dur-ing tho past two months AVc have paid considerable attention to developing our base ores and the result Is we llml wo have very much larger hOles of thin material than had been supposed and the value of the mine had accordingly accord-ingly materially Increased AH for the proposed MercurGoldcn Gate Consolidation Consoli-dation theme Is I nothing new to give out et Nothing has been agreed upon but negotiations and work o examination examina-tion mire progressing nicely and tlc outlook out-look Is favorable lotll orblc for the consummation of the deal Mi Berns report Is to he incorporated Incorpo-rated In a circular and sent in full to each shareholder with the next dividend divi-dend check V |