The semi-weekly miner., 1883-07-21
Legitimate Mining.
Prof. J. E. Clayton writes


II believe in legitimate mining,
and think that men should engage in
it just as they would in farming or
manufacturing, or any other branch
of national industry. The first step
is to secure good mining property,
the next to erect reduction worho and
commence the manufacture of bull
lion. Then if the business prOspers
and dividends can be paid out of the
legitimate profits at regularly stated
periods, it becomes proper and legiti-
mate to place the property on the ex-
change lists. 1 think to do so before
the mines are proved to be as valuable
as represented, is an attempt (too Of
ten successfully toswindle the public.''
Montana has seen fortunately free
from the pestiferous operations of the
mining stock sharp. The develop
ment of our mining properties so far,
has been the result of the legitimate
working of the mines for
their output of bullion. It
was feared that the repeal
by the last legislature of the non-as-
sessable stock law, would result in an
influx to the Territory of paper mine
promoters, who would injure the
standing Of Montana properties by
flooding the eastern markets with
worthless stocks; but happily no such
result has yet accrued, and with one
or two exceptions no attempt has yet
been made to foist upon a confiding
public, stock certificates representing
property, the value of which only
exists in the representations of the
promoters. That schemes of this
kind can be successfully operated, is
revelation of the credulity
of the men who can be thus
imposed upon. The more carefully
considered investments now being
made in mines and promising pros
poets instead of gauzy stock certifi-
Gates, must soon change largely the
profits of the business of stock min
ing and add strong element of
strength and stability to to the actual
development of mining properties.
No field of industry presents more
substantial inducements for wise in
vestment of money and labor than
the limitless resources of our mineral
bearing Territories. Yet it is fact
that no legitimate and actually val
liable line of business has been so
basely prostituted by class of con-
scienceless sharks, who have deliber-
ately planned to deceive and detraud
innocent people. The amount of
utterly worthless stock, upon un-
known and unknowable mines which
never had and never will have a
name or existence except in the de-
based imagination, and on the GER
tificates of the soulless swindler, is
marvellous and surprising.
Millions of hard earned dollars
have been paid for stocks which are
based upon no tangible evidence of
value and were issued for the sole
purpose of defrauding innocent peo-
pie. Claims have been secured for
the bare cost of location, and So
called mines which were purchased
for fifty dollars, have been made the
basis of a stock issue of tens of thou
sands OF shares and a capitaliza-
ton of millions. These millions of
thus secured, are not
only lost to the legitimate develop
ment of our mineral resources which
are valuable, but the industry of min
ing and its immense interests in
every state and territory are retarded
and the capital invested In the prose-
cution Of Important mining enter
prises has been made to suffer loss
from the reproach and suspicion
which have been engendered by so
many disreputable schemes operated
in the fair names of . most valuable
and satisfactory business.