The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1880-07-11
UTAH MINING COMPANIES.
A Mushroom Growth in the Wrong
Direction.

There is mania for organizing
mining companies in Utah. 1t had
its birth about :Ro years ago. since
which time it has been spreading and
has become alarmingly prevalent
Every individual who discovers the
indications of a mine at once runs to
town, organizes a company and in
corporates for amounts all the way
from 100000 up to $4,000, 600,
the last amount, thanks to what may
now be viewed as an inspirstional act
on the part OF our legislators, is the
Emit allowed by law, or We would
have some mines with capital stocks
ranging up to $50. 600, coo. 1t is safe
to say that during the last year and q
half between fifty and seventy-fve
new mining companies have been
organized, and Of this number proba.
bly, not more than ten, if that many,
are worth q continental. The in
corporatoTs may have been honest
enough and saDguiue that their prop
eriIes would develop into mines Of
such magnitude and importance that
the capital stock would have to be in.
creased. even il placed at $4,000, 900;
but the creation of 60 many compa-
MES has had the only effect it
could possibly have-to make people
wary. Like everything else, mining
stock becomes very cheap when
there iE too much OF it, that lie, too
much OF the character that has no
intrinsic vslue, and while 8 share
may call for 500, it is not worth 80
many cents. The tendency Of this
course can be productive OF one effect
only, and that is to bring Utah mines
and mining companies into discredit.
We have not 30 many mines posses
sing national regulations and paying
big dividends; nor ia Utah in a posi-
ton where she can afford to have dis
credit brought upon any of her in
dustries. 1t is certain that it would
take great many excellent and pre-
itable mining companies 10 with
stand the Injury that can be brought
about by few poor one; and it is 9
pretty safe calculation to make that
nine out of every ten of these many
companies will be remarkable for
nothing but their failures.
We have already seen what vast !
and long continued injury can be c
wrought upon the territory by single d
failure or alleged failure of q mine.
The famOls Emma, which even now !
is claimed TO be property that will +
prove q bOnanzs, and which has ;
yielded a wealth of ore in her days,
is an instance in point, sad miners !
we'll know the struggle and time it !
took to recover from the results :
brought to Us through this property. /
Then it must be stopped; If these new
companies, S. any one acquainted :
with matters here can see. will work
no good, they will certainly work i
harm; and the pernicioHs effects they !
will have should be thwarted. This !
can only be done By a fair end =
thorough ventilation of the methods =
81 organizing mining companies '
hers; how capital is raised; what +
class OF men, as 6 rule, are connected h
with these interpretations the a
amount of stock possessed by them in :
the various companies; the practical !
evasion of some parts of the law in
tended to secure the iGcorpora ion OF
only legitimate and valid companies;
the condition of some of the proper 7
ties possessed by the companies, tc- {
gether with some fair expressions as
tc the apparent objects in view in the
with the results that
must inevitably follow, and which
even the incOrpoTstOrs and organizers O
must admit. With this {
object in view, the HERALD has gone
10 the trouble Of securing as accurate I
and full report in these matters as I
possible, which will be published {
from time 20 time, and which will o
doubtless prove quite interesting to
many individuals here. 1t will be a l
fair statement of facts, without abuse, s
and all will be treated alike, the only y
object being to purge eur mining in 9
.erests of the foul practices that
are growing up. if it is possible; and ,
it can have but one effect. and that is 1
me Of good for the whole territory.