Washington standard. [volume] (Olympia, Wash. Territory) 1860-1921, 1881-04-29
Facts About Mining Companies

Some years ago there was brought 10
New York remarkably fine nugget Of
gold, which was said to have been found
in California mine. Portions OF il;
cut off under the direction OF the owner.
were assayed by experts, and the MAS
was estimated TO be worth considerably
over 100000. Having secured lean
Of several Thousand dollars on it from
a confding broker, the owner dis
patched it to Paris for exhibition, and
thereupon quietly disappeared from
| view. 1t was soon returned to New
York, and remained for some years in
the custody of the broker who had adj
vanced money on it. After his death,
his heirs sent it to the Government As
say Office to ascertain its value. The
first sut OF the assayer's chisel revealed
| tt fraud. There was first layer OF
e. I'd, then one OF silver, third Of cop.
per, and the remainder was solid mass
of lead! The net value Of the nugget
was less than 5000.
That ingenious imposition very
fairly illustrates the character of
large proportion OF the mining COM
panies which have been organized in
this country during the last few years.
They have borne the outward appear
ance of honesty, and, backed up by
estimates and opinions (well paid for)
from eminent experts respecting the
great value of their property, the origi-
majors Of the various schemes pre-
seDted to the public lave found little
difficulty in transferring vast amounts
of money from the pockets of investors
to their own. There is something ex-
ceedingly fascinating in the idea OF
having an interest III gold or silver
mine; but, as many rash investor has
learned to his cost, it is apt to prove
good deal more fascinating than profit
able.
The unsubstantial character OF the
greater number of the mining compan-
les whose flaming prospectuses one
meets at every turn, is clearly brought
to view by some recent investigations,
made by a gentleman who commune
Gates lis discovery to the E0sning Post:
An examination Of the annual reports
of forty eight companies, organized
under the laws of the State Of New
York, shows the following startling
facts: The total capitalization OF the
forty eight companies reaches the en0r-
nous sum of $147, los, 900, an average
of little over So 100000. The esch
total amount paid in in cash by
the first shareholders in these COM
pan;es was 5000 .875, or about six
tenths OF one per cent OF the paper
capital. But this ameunt, it appears,
was all paid in by fourteen companies,
the other thirty. four not having paid. Q
single dollar into their respective
treasures. And of the fourteen COM
panies. five paid in $785 900, leaving
only 1924 875 10 be apportioned among
the remaining nine. Tie largest sum
paid in BY any eompany was $3.50. COO,
the smallest $50. The latter concern
has nominal capital of $4,000. 0OOt
Six companies having q capital Of $lO,-
600, 900 each, and one OF 800. 600, 900,
have not paid in q solitary dollar. Bat
they have debts aggregating the neat
little sum of SS59, 1l2. The entire in
debte.lness of tho forty eight compan-
fes is 81 .853 35770, or more anan twice
the amount paid into tho treasures.
These are suggestive facts. We COM
| mend them to those who are tempted.
| by the promise OF fabnlons returns. "a
risk their money in mining organixa-
tons There are faw companies
whose shares it would be safe to buy.
il any could be found for sale; bat
they are seldom in the market. "A
newly organized company in whose
securities it is safe to invest Is q
rare, almost, as biackberries in winter.
Most of them will not bear inyestiga-
ton. The first stroke Of the chisel lays
bare The worthless lead beneath the
glittering surface Of gold or ailyer.
[ N. Y. Examiner.