Litchfield enquirer., 1878-06-13
Mining Speculation.

In recent article the Springfield Republi can sets forth the precarious present condition of the s'bonanza" speculations in which Cali fornia has reveled for several years past. Out of 222 mines whose stocks food the California markets only 12 are now paying dividends, and only AT have ever paid dividends. Leav- ing out the California and the Consolidated Virginia mines the remaining 220 show an outlay of ten millions in excess of receipts. The two great bonanza mines have, indeed, paid fifty millions, chiefly to four nen-but even these are now apparently ''played out |"
 Shares in these companies rose from $50 and $10O respectively, to $7O0 and $500. Then, during the past three years, they have fallen to $12 and $2O-a total shrinkage of 85 millions
 The Republican thus explains the process by which few mining swindlers accumulate their millions of stolen money:
 This manipulation of mining property SC that it shall inure only to the enrichment of a few favored managers has been reduced to a fine art on the Pacific slope. The first step is to credit mobilierize the mine,-that is, the managers contract with themselves at exces- sive rates for digging the ore and extracting the metal then there are tailings retained as a perquisite- handsome profit. With these certain sources of income secured, the managers next devote their energies to the ad- ministration of the property, theoretically for the best interests of all the stockholders really for their own alone. One stays with the mine as superintendent, the others sit in elegant of- ficial parlors at San Francisco, and pull the wires that regulate the market. Only them selves are allowed to know the true condition of affairs at the mine. Is there rich vein of ore struck, the diamond drill soon reveals it's exact extent and approximate value. Mean time, the stock is quietly bought up, and then the story of the discovery, ,magnifed hundred fold, is industriously circulated, the shares go up with bound, the firm sells out and is ready for new deal. This is easily accomplished through assessments on the stockholders. The mine has been flooded and must be pumped out shafts must be sunk and costly machinery l bought-plenty of excuses valid and other wise-and there is no resource for the stock holder but to shell out or be dispossessed. By this means the stock is again reduced to the lowest ebb, and the managing firm sweep in I the margins upon which it has allowed it's de- 1 luded constituents the nominal ownership of shares. These arbitrary assessments have av- eraged 12 millions year, or as much as the whole state and county taxes of California put together. By such operations, repeated time and again, have thousands been financially ru- | ined and the colossal fortunes of the bonanZa kings built up. So manifestly unjust is this secret method of mine management, with its vicious system of unlimited assessment at the will of few trustees and managers, that ar attempt was made in the recent Legislature tt of f B Ms ln tns n5efs Hp SS der the direction of the governor and passed the House by large majority, but the mining ring evidently captured the Senate, where the bill met it's quietus.