Eureka daily sentinel. [volume] (Eureka, Nev.) 1871-1887, 1879-04-27
s.INESG STOCKS.
Ntss. ~ leading Authority says of
the Ua.iooi. ia f.ie East.


tise U~a:soai. ia tie East.
Prcfessc3 Raymond seems anxious to
help the people Of the East to a proper
understanding Of the BENEFITS arising from
legitimate mining and investment therein.
In the Engineering and Mining Journal"
OF recent date, we find the following regard
ing the outlook Of the Eastern demand for
mining shares:
The market for mining stocks is likely
to be a 'sbull" one for q long time to come,
especially on new mines and the more i'm
portant old ones. 1t takes considerable
time to get the stocks floated, and until
the promoters fully unload, it will be Ham
geroas to make important bear" attacks.
The time will come, however, when raids
can be made here, even more successfully
than in san Francisco. owing to the timid-
ity of Eastern investors in mining stocks.
The market being then a rising one, we
desire to pat our readers on their guard
against paying too much for the stocks of
even good and deserving mines. A new
and promising mine that has paid but
little may develop into a very valuable
ptlts niiiiG an tii susnC tUit HIS FdiI iuit-
lions in dividends may suddenly be worked
out. In investing in a mine, the questions
to be asked are, What is its condition to-
day." and what are the prospects of
Development" As n rule, to do better in
mining than in government bonds, one
must take risks; but there is no industry
in which such is not the case,
and the risks are probably reduced
to as low a minimum in mining as in any
other industry, while the prospects for
extraordinary profits are much greater.
There will be a class who will not pur-
chase mining stocks on a low basis, but
viii wait until there is a large interest in
them, bent on advancing the market value
OF the stock, and will then purchase, and
in fact permit the spectators to make
their profits. A person who ,annot see
value in a stock at $40 should not pnr-
chase at $40 because in advancing to that
point the stock had become popular. Many
stocks will advance rapidly and steadily on
actual developments in the mines, but the
majority of them will be made to advance
by manipulation.
The Comstock stocks. tho most danger
Gus of mining stocks. are even safer in
yestmcnts than are many of the railroad
stocks on the New York Stock Exchange.
The Comstock mines are said to be run in
the interests of cliques; this is equally the
case with some of the railroads. Com
plant ia made that the Comstoca mana
gers do not give their stockholders infor-
nation; nor do railroad managers. 1t is said
the Colnstock managers make the situation
appear bright when they want to sell, and
the reverse when they want to buy stocks;
tho same thing is done every day in Wall
street. with railroad SECURITIES" Com
plant is made Of assessments on mining
stocks; railroad stocls are unassessable;
but how often does it occur that reofgani-
cation schemes are put forward and ASSESS
mont asked for, with the statement that, If
not paid, the hondholders will become the
possessors, and the stock will be wiped out
altogether. On mining stocks it is plain
assessment" and on railroad stocks it is
s'organization'-ali the same thing in the
end. Many mining stocks have a market
value without a pound Of ore sin sight,
but in such mines 4 bonanza is still q pos
sibili.y: many railroads that are mort
gagged for more than they are worth, aud
are not able to make fixed charges, have a
market value based upon prospective
profits; but the mines have. as a rule, better
prospects than many Of these railroads.
Speculation is conducted in the railroad
stocks because they are under the control
Of our leading spectators. Mining stocks
are mostly under the control of San Fran
cisco operators. What is known as the
public" makes but little choice between
the New York and the San Francisco oper-
ators; hence the dealings in San Francisco
stocks, in dealing in which as much iudg-
ment can be displayed as in the speculative
railroad stocks, while there are much
greater chances of large profits. We do
x,n+ ,,ala &I;n ao,.,o-N, ~ ....l =.
bringing about speculation in the Com
stock stocks, but to show tie position min
ing in its worst phase holds to railroad
stocks.