The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1879-12-23
THE Rising MINING fever.
Bonanzas Past, Present and Future
New York the Mining Centre.
SAN FRANCISCO ECLIPSED.
What We May Expect in
the Near. Future.

win Now York become the great mining centre OF
she country instead of San Francisco? is question
now often asked and generally answered in the
Affirmative by those who posted. 1t is known
that the last two years thero has been steadily
Increasing interest in gold and silver mines shown
by investors and capitalists at the East special
Mining Board has been established in this city,
which now does very large business. larger.
It is claimed. than that transacted IN
the San Francisco exchanges. while our reg
ular Stock Board, which ignored mining securities
Tor SO many years. now actively deals in some ten
stocks OF largo mining companies. 1t has also peon
noticed that the dealings the San Francisco Board
have shrunk compared with the old bonanza times.
and recently prices have been very low compared
with those current two years back. 10 get at the
true nwardness Of this matter reporter called ON
Mr.. d. G. Croly. who was found ut the Bullion Club.
No. 10 West Twenty fourth street.
WHAT JOHN MAcKEY SAYS.
'You have given some attention to mining mat
tiers, l believe Mr.. Croly? said the reporter.
Eyes; my health and eyesight failed me in journal
ism. and as had amateur taken great deal of
interest in mining matters. and when had the time
to spare visited Colorado last fail and California
last spring Being secretary Of this club naturally
have become very well acquainted with the growth
Of the interest in mining here at the East. When in
California was interviewed by several of the
papers. and thon said that believed New York
was destined to become the great mining centre of
the New World. saw Mr.. John Mackey. and he
half admitted to me that he feared such would be
the case"
"How did you happen to come to this conclusion:
asked the reporter. ..California seems to be the
natural headquarters for mining in view Of its
ness to tho Comstock lode and the special acquaint
ance OF its people with the business
"well." answered NJ. Croly, "this very question
was put to Mr.. Mackey, and he said that England
could manage mines In any part of the world. The
London capitalists own bullion producing proper
ties. and some very good ones, in our country.
Probably the best managed mine in the world is one
exclusively dealt III in London-the Richmond Con-
IN Georgetown. IL also owned in England. None of
the shares on this market. English capitalists
tralia-in short. in every part OF the world. Mr..
Mackey could not see why New York could not do
for our own country what London did for the whole
world. 1t was merely q matter Of money, organiza-
ton and proper management
But. Mr.. Croly. what special means have you for
believing New York is to become the centre OF the
bullion producing properties?"
II formed that opinion several years ago. and in
paper with which 1 was then connected wrote
sriice after article calling tho attention of our
Stock Board to the importance OF securing this bust
sOl o Ia ars sas n
some way would naturally como to that point where
money was the most abundant and cheapest.
MI, ONLY TWENTY MILLIONS IN ALL CALIFORNIA.
al doubt If the whole State of California has use
for more than twenty millions of dollars in the
transaction OF its business It follows that the mar
ket there must be very huctuatng. few Thousand
shares bought will put up the price of any stock,
and few hundred shares sold will very often knock
II down. But with the immense money interests in
New York, with capital seeking investment profit
Sbiy. there are not these wide fluctuations. The
number of buyers aud sellers is larger. and hence,
by u natural law. these industrial enterprises which
demand large capital naturally centre at that point
sanf can the cheapest and the most ssan
'Bnt." asked the reporter. 'is there not great
deal Of swindllng Of corrupt dealing in mines and
with mining shares. and not the investing public
likely TO be steadily heeced?"
at must be admitted the answer. "that there
ia great danger that the iambs will be caugh out IL
fney buy mining stocks. In some respects 1t 10
dangero US business. You see. while district will
produce bullion for many generations, single mines
liable to accidents, and may give out entirely.
Under our mining laws company can be organized
upon claim 1900 feet by 800 or Co., After shaft
" sunk there liability to numerous accidents The
woodwork in the shaft may get fire; the vein may
be produced aIterward or water may get into the
Mine. Under these circumstances the Insiders take
advantage OF the investors. Dividends stop The
drain tho water or rebuild the works. go through
the barren ground and put the price of tho stock up
again. In address before the Bullion Club tried
10 make the point that mining would never become
q Legitimate business until there larger con-
solidaons OF INTEREST," that the investor should
have to depend upon any ono hole in the ground;'
that groups of mines should be worked instead OF
single ones; then II there was somo accident to tho
machinery or o pump broke, fro took place or
water poured into the mine dividends could be
unued from the other associated enterprises. And
was quito pleased to notice that the point
well understood rs to be widely copied. found my
remarks quoted III the prospectuses Of number OF
new Western enterprises where combinations OF
properties offered to investors rather than any
mine with its single shaft, &c. think the day
10 coming when mining companies will issue
bonds well as common stock; the former
representing the plant of the investment. the stock
the more speculative element There is constant
difficulty among mining companies due TO qlprrels
as to which one ore bodies belong to. No vein
down steadily. II will sometimes pitch to tho west
and litigation"
$50 pIv1pENp PAYING MINES vs. PROSPECTS
"Mr. Croly, in what respect does mine owning
here in the East differ from what obtains in the
California market?"
..wel., Eastern investors insist upon having divi-
dend paying properties; the Californian cares more
With the hope that when ore is struck ' or the
mine developed he will get a very largo advance
worth $50 in time, but tho moment it becomes divi-
dend paying his interest and he sells out.
Hence 1t is not remarkable that there probably
not more than three mines on the San francisco
boards which pay dividends All the rest are mere
prospects. Here on the New York Board the great
bulk Of the properties arc either dividend paying
expect to become shortly Hence there is less
huctuatioD the price Of mining securities dealt in
ON the New York market
..As tho dividends are quite largo. compared with
railway Investments is Il not attracting people who
have surplus wealth to invest and Is there not likely
to DO quite furorc in miningY
certainly there Is" answered Mr.. Croly. ''why
Twas looking tho lists the other day and find
that there thirtynvo mining stocks pay tug
dividends which arc actively dealt in in our market
These disburso from fvo cents to 81
month and / happen to know there quito
q number OF properties about to be put
tho market, oil or which will pay largo dividends"
(Ifere Mr.. Croly showed the reporter list of tho
mines but said he lid not care to give their names.
rs II would look like advertising them. and. besdes
he was afraid that some of the properties were nero
blinds on which dividends paid simply to sell
the stock and cheat tho public. SO any list that no
might give would contain some such wildcats.
"Now. continued Mr.. Croly. al think this will tell
on tho public; indeed, know 1t is telling
They SEQ and hear month after month
of q stock which sells anywhere from SO to $780,
which pays from ATTY cents to 81 month. Some
of those mines have uono this for two, three and
four years. Then tho returns of some of the Lead
Vile mines, for instance really extraordinary
How long they will last ono can tell, but tho
figures for many OF them are rdiculously low, even
IN they continue these dividends for two years.
Tho speculative feeling IN rising in this country
Hallway stocks have had a great BOOM