The Rutland daily globe. [volume] (Rutland, Vt.) 1873-1877, 1877-05-05
From the New York Journal OF Commerce
The Emma Mine Suit" Caveat
Emptor."

The Emma mine suit-like other suits
which have been brought in this country to
recover damages against directors OF pro-
motors of joint stock companies for alleged
frauds or Misrepresentation ended in
a verdict for the defendants. Since the
days when gold mining and petroleum spec-
ulations were rampant in the United States
a great many persons who sunk money in
them have sought to recoup their losses by
actions at law, and we believe have failed
without exception. The evidences in all
such cases showed to the satisfaction of
juries, at least, that there was no actual,
provable cheating in the transactions. The
fact that gold mine "peters out" or an
oil well runs dry, land leaves lot of worth
less stock on the hands of the investors, is
apt to be considered by those luckless per-
sons proof of downright fraud on tho
part of somebody. Every man who under
stands human nature, and who has studied
the speculative manias in their strange de-
velopments, knows that this theory doesnot
explain the phenomena. Where there is
one instance of deliberate deception by
''salting" mines or making false reports of
visible wealth and probable yield in any un-
foreground enterprise, there are thousands
of instances where all concerned in it are
the victims of illusions and extravagant
hopes. If they misled others, they were
also themselves misled by that will-of-the-
wisp, the desire of sudden wealth.
We are only likely to hear of the mining
speculations that failed in that remarkable
period Of our history. There were some
though comparatively few, that succeeded.
Of these we hear little or nothing, the per-
sons interested in them keeping quiet while
they have good thing" Had the Emma
mine answered the expectations of those
who sold and bought it for $4,000 it
wonld have been a good bargain at the
price. Like all the richly productive
mines, gold or silver, at the west, it would
then have been go worked as to conceal its
real wealth. Nothing is more
difficult than TO get at the
actual statistics of the production of the
"big bonanzas" Of Nevada and California.
AS the Emma mine has not yielded the
riches hoped for, the English stockholders
in 1t have made the courts ring with
charges of American swindlng. The
Emma mine has been held up to the world
as typical example of Yankee cunning
and sharp practice playing upon the credu-
lily of poor John Bull. This view is not
wholly unfattering to Americans who pride
themselves on the national "cuteness," but
the testimony shows that if there was any
rascality practiced, Englishmen also were
implicated ia it. Before they completed
the purchase of the mine they had every
opportunity to inspect and work it, and
they did both. The English investors in
this losing game must put part of the blame
on their countrymen, where it belongs, if
anybody is to be censured.
The defeat of the plaintiffs in the Emma
mine suit will discourage the formation of
mining companies-if such scheme needed
any new announcements. IL these COM
panies or stockholders could get damages,
enough to make good their investments,
against persons selling lands or mines ON the
charge OF Interpretations. there would
be less reason for people to be circumspect
in buying the stock Of such bubbles. The
verdict of the jury in the Emma mine case
emphasizes the sound old maxim of cauedt
emptOr Cet the buyer beware.) If the
English purchasers were "taken in" by de-
ceptions they could have saved themselves,
perhaps, by exercising more sagacity and
shrewdness, and making more thorough
examinations of the property before closing
the trade. 1t would not be right for them
to make the American and English pro-
motors bear the whole penalty Of the care
lessness, or folly or Incidence of the in
vestors.
The disappearance of joint stock com.
panies from the mining field-which will
be one of the results of this verdict-will
be real benefit to mining operations. The
best paying mines in the United States are
now worked by private individuals on
shares. These men attend to the details
of the business, dispensing with costly of
fees, presidents, secretaries and superin-
tendents. By this means they save large
part of the expenses of the old company
system, and they get an honest return of
products. A great many mines, now idle
or worked unprotitably while owned by
companies, would yield dividends If thrift
lily managed by few owners with little
other private business. On this plan the
Emma mine itself may possibly be made to
produce something handsome. But if it
should turn out complete loss to all en-
gagged in it, the Emma mine should still not
be a byeword for American roguery-so
the jury have decided-but would only
stand as another Illustration of the lament
able uncertainty of all mining epterpriees.