The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1880-09-18

THE NEWSPAPERS, ard especially
those taking an Interest in mining
matters, have lately bad a good deal
TO say concerning the over-cspitaliza-
tionof mining, and the condemna-
ton OF the practice bas been almost
universal. The Journals rightly assert
tha: It IS Injurious to the industry,
and ought TO be discountenanced by
honest companies When a small
property, worth few thousands only,
g capitalized for ORG or ten millions,
Is many of then are, tbs public is
certain t. LOOK upon the scheme as
speculation instead Of Legitimate
mining, The objec! is regarded as
the selling of stock rather than the
production Of bullion. Those engaged
in it may be scrupulously honest and
conscientious, but they are mistaken
in their judgment, and in too many
instances they sre neither honest nor
conscientious. The real value Of the
mine is nothing to them, the question
being, how much can they get for
stock? Not few really good mines
have been ruined by over capitalize
tion. They ooald ray Dividends on e
reasonable number OF shares, but
when asked TO return q percentage on
ten million dollars, ihsy tail and
collapse follows. II mimi; com
panies were organized on g more
compact and tSngibIe basis, there
would be more confidence in the
shares and in tae industry; but when
q capitalist sees a hole that Celt two
or three thousand dollars, stocked for
ten millions. doubts very naturally
arise IN his mind. It may be said
that the stock is sold on the two CT
three thousand instead of the ten
million dollar basic, but that
only heightens the speculative fea-
ture and exci.es deeper distrust. The
hundred thousand dollar project looks |
practicable; the ten million scheme
has e fAnciiul speculative appear
aace. One Of the mot sensio!o ar
ticles that We have seen on the sub
iect appeared in a recent Issue of the
Mining Revie,o. We extract from the
article:
1t would be much wiser for all thsse
companies burdened with excessive capi-
to call halt for reorganization
anu reGuJusIment thsn 70 endesvor 10 |
brave the inevitable. Capitalists and |
hnanciers readily perceive the bree!-ars
ahead, and no show Of success or SEEMING
prosperity viii hide the fact from view Z
or cause them to forget that the elements 5
II danger have not been removed, or that
he vampire, though hidden, is still sap I,
1lng the vltals of these enterprises.
nefeiore mining will suffer from the with |
,fSwaI OF capital, and the day of its full 7
ieFelopment be delayed, but its true 6
worth, Its treasures of gold and silver, lis Z
torres CT wealth which may wait for the | :,
1etter wisdom Of ether generations
hey cannot be touched or Injured bv the
Of men, or by the.bandwriting U
"a the wall which points TO the fall of II
ne reign and kingdom Of mismansge- b
aeatr which has been the chief stone of Ii
IN the pathway Of mining in n
Gr onward march TO assured prosperity. a
Ne look for no radical change from the o.
resent depressed condition OF sffsirs nm c.
Il mines, prospects and stocks, inyitIng | {!
Investment, are placed upon fair basis Il
UGH that any reasonable man csn an el
rove OF and trust with as much safety. al
M rely upon with as great degree OF h,
ecULlty as upon any other business en- a.
,rprlse or Investment No business can u
g mada sure, certain, and without snv Pl
szsrd. No one asks this or expects II '.
VI Il can be made free from those min "a
pals which viii certainly and surely rs
ring disaster. No captain can assnrs =,
10 safe arrival of his vessel, but ha con ~
:sure the passenger that there "a no w
stored in the hold IN
powder "a the engine room, as
ne present apathy, and the witbdraq vol to
capltsi iTom mining investments, car sol
u DC rom lack OF faith in the present bo
the ultimate value of our ninersI 81 ~
,veries, or from the unprofts bIeross 20 ID
ming operations, because dgveIorr1a,t soi
'erywhere, whatever may have hsan q
9 result, has only proven mo oy *
ncluslvely the possibilities which III
In this direction. Therefore il IA
ust come from sn apprehension ~
e. financial management and can =.
'.lzatlon Of mining Companies. M
lie fact alone calls loudly for reform NJ
mediate and thorough, and they will be-
Sc who first conform to the Imperative
mand. Mining is as simple as farm
:, and 1t Is to be hoped that all its en- w
lglelments Of stock mRnipulations, bisb no'
pllallzatlon and other abnormal ex- Coi
;jSsences may be cut away so that tLis Sal
"a y p'o % industry may take the
eg established industries Of our Gang ?
: Lin