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Show Mar 11. 1956 The Western Mineral Sumy, Salt Lake Citf, Utah Page 2 WESTERN MINERAL Editorial SURVEY Late Stab A 131 Flume EM Church Street ADVERTISING Salt lake City, Utah Entered as second dees matter at Balt TjV. city, Utah, under Act of March 3, 1879. rates: $5:00 for tvo yeara; for one year. Fleaae mention Western Mineral Surrey when writlnr to adrertlaen. Adror' tuiny rate on application. Subscription 13.00 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 look pretty rank. Such generality does not carry PnbUahei HARRY B. rs through. In a special report carried by the U.S. News and World Re1955 port, April 6, it is pointed out that uranium production in 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 years 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 dont become producers without some kind of financial backing. Financial backing, in an industry as youthful as uranium, had to come from such sources as die stock investor. 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 the 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. Hie SEC, ruled by basic mining laws as well as the rest of die 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 die 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 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 SECs warning and die columnists 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 estabto buy securities of responsible, appeal of cheap stocks lished companies moving into the Held. Without the small company, venturing into an unknown, unpredictable 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 the aid of the the without have wouldnt crawling stage passed small companies and their stockholders those hundreds not listed in swindler" ranks, who gave it the initial support fly-by-ni- get-ric- ... over-zealo- us Mining Company (Lessee to Eureka Corporation, Ltd.) 309.397 CIRCULATION Box 2608 mining infant Richmond-Eurefc- a - HEWS 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 Porters 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- PMM LOIMAINI Shares ($10 Par) Controlled by U.S. Smelting, Refining & Mining, Richmond-Eurel- a owns and has an important royalty interest in the properties at Eureka, Nevada, under development by Eureka Corporation Ltd. SUMMARY ON REQUEST A. G. EDWARDS & SONS (Est 1887) Members New York Stock Exchange 501 Lexington Ave.. New York 17, N. Y. GAIL Editor F. CRITCHLOW Contributing Editor Ik M. AU 'news appearing In the Western Mineral Surrey la obtained from eoareee believed to be reliable hat no reeponslbU lty la assumed for accuracy of statements. Reproduction of any material from this publication moat hare written pennlaaion from the publisher. A segment of the Big Indian Uranium district shows the location of the Phoenix group of claims being developed by a tri- Colo. Matches Missouri Says Commissioner party venture. Deal Tri-Fir- m Phoenix Drilling Opens TELLUR Colo. Base met- IDE, rector of Western Silver-Leaals possibilities of the Telluride-Oura- y the company completed three exarea drew enthusiastic ploration holes on the Phoenix property in 1955 which penetrat- comment here from a former started drilling their Phoenix ed the Cutler horizon. Missouri state securities comMineralization was enocunter-euranium prospect in the Big Inmissioner. dian district, San Juan county, in each hole, but not in Utah. Missouri is a lead state, but 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 John L. Spalding of St. Louis, claim. and No. 4 claims in an effort to who was securities commissioner determine the location of the big ROGER RABSON says in part for Missouri until he resigned Lisbon fault, according to a Westin commenting on the New York last fall to represent a large New ern Silver-Leaofficial. 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 don, Homestakes Alice and La- standardized Blue Chips. Invest- Spalding and Lew Larkin of Salle, the Cord and Steen's fa- ments cannot safely be standard- the Kansas Star staff were here mous Mi Vida mines. ized. An investor should make to tour the Bradley lead-zin- c dito Gus Voltolini, According purchases according to his age, mine of Utaco Uranium, Inc., responsibilities, temperment, and which is operation this starting kind of work in which he is Tar Baby Stockholders the also week. inspected the They engaged . . . (We heartily agree at Utaco mill Ouray, which is Vote Par Value Increase with Mr. Babson a little spec- to be ready to test ore next week. 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 outstanding shares from 2,000,000 $221,069 for about 17 cents a Utaco Uranium. Earlier they had share in 1954. Ore sales were up visited the rich Allen No. 2 urato 400,000. move The 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 McCue president, the current liabilities of $129,712. company also made the capital stock nonassessable. 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 directors 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 Wishes to thank their stockholders for their nominee for the office of Western Silver-Lea- d corporation, Square Deal Mining & Milling and Uranium Mines, Inc., three Wallace, Idaho firms have d, d corn-previo- us Mac-Tavis- h d 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 entered 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. splendid response to the offering of MONTE CARLO URANIUM MINES, INC. The public offering was closed May 9, 1956 and will gin trading in the near future. be- FOR THE LATEST REPORT AND HJRTHER INFORMATION ON MONTE CARLO URANIUM MINES, INC. WRITE OR CALL: James 8 E. Reed Co. east Broadway PHONE EL 50 Mid-Contine- nt Securities 300 ATLAS BLDG. PHONE EM SALT LAKE CITY. UTAH 95 |