Arizona weekly citizen., 1881-08-21
mAErPuIATEe sroors


 It is not an unusual thing, even in the new mining regions of Arizona, to see valuable mines lying idle, even after the erection of mills and other valuable machinery and the partial development of the properties. Careful inquiry into the cause will almost invariably reveal some trouble among the manaeers-some s1ock deal in the interest of the manag- ing parties. The Boston Economist gives the following good advice to stock holders in good mines, that if needed. will hasten the end of such dishonest dealings and save many small stock holders from sacrifice of their stock.
 The Economist says. After an in- yestor in a mining stock has become sat isfied that he has bought into q real property and good one, the best and safest thing he can do is to hold on This advice is particularly applicable to persoas who hold shares ip what are known to be valuable mines in Arizona, the mineral treasures of which wonder ful Territory have yet hardly begun to be developed, The purchasers, after brief holding. sometimes see the stock decline, and knowing that the fnine 10 n valuable one, are puzzled for q reason. After a time they hear that the manag- CTS are speculatlng in the property in- stead of faithfully developing it. Some sell out in sheer disgust and anger, un- willing to intrIst their mOny to such unworthy agents; and others dnl0ad from very fear, not knowing how badly the affair is going to result. It is pre- cisely the state of things which the spec ulating managers desire to precipitate. There is one way to foil them in their schemes, and 1t is usually an effective one; that is, to held on, and refuse to sell under any circumstances.
 The speculating managers, to explain the matter, prefer to keep the stock in a state of constant huctuatiOn and un- certainty, feeling sure Of making more out of this process than out of the nine; and their preference is also for keeping the stock dancing between two low fig ures rather than between two higher ones, for the obvious reason that they can thus handle II much more easily. And then they q ahead their manipulatii 2, reg less uf tn, TaiEe of the mine it- z, wh; ley grescr or ris- pective. They regularly go [ rough the process of what they style milking the street. Inasmuch as the original pUr- chasers are chiefly out Of the ownership, and the stock has become a football to be kicked this way and that in the street, all the interest in the mine at last centres in the huctuating prices 0f it's shares, and not Ht all iu ilo output of it's valuable ores. The instances are far from uncommon in which say twenty thousand or more shares of a stock are sold at five and six, and bought bacS by the same parties at four and three. That is precisely what is meant by the milk ing process, and any one can see for himself what connection 1t has with legitimate mining.
 In order for those originally interested in 8 good mine, that is as certjun as any thing can be to pay 30 and 70 per cent, to be sure of receiving back the returns from their investment, they have but to hold on to their stock through thick and thin, and let the speculating managers play with the stock in the market as they please. But the fact is, they could never manipulate it in the way they do f the bona fide stockholders would only resolve to remain stockholders to the last. If they would continue passively indifferent tc these speculative stories which are set on foot on purpose to bear the stock, there would not be enough Of it outside for the manipuiators to oper- ate with, and in this way they would be discouraged and failed. In such cases a low price in the market is a sign that the speculators are buying themselves.