New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1895-12-08
COLORADO GOLD MINING.
CONSERVATIVE ESTIMATE OF THE
GROUNDS FOR THE PRESENT
EXCITEMENT.
THERE, is A SOLID BASIS OF INCREASED PRODUC-
TON. But EASTERN INVESTORS ARE EASILY
DUPED BY SHARPERS-CRIPPLE CREEKS
HIGH GRADE ORE AND THE IN
JUDGEMENTS OFFERED TO
SMALL OPERATORS.

JUDGMENTS OFFERED TO
SMALL OPERATORS.
Denver Dec (SpeciaD The increasing interest
in gold mining, with the present excitement over
the mines of Colorado and particularly OF Cripple
Greek. has led TO many vague and misleading ru-
mors; usually the more vague and hazy in proper
ton the distance from the mines themselves. A
long residence in Colorado mining camps in the
somewhat conservative occupation Of ore-buyng.
year of which was spent In Cripple Creek itself.
puts the writer in position TO give the unvarnshed
regarding Cripple Greek and the status of min
ing In general
In the first place an investment in mining stocks
is not mining but speculation pure and simple, and
much of the suspicion with which conservative in
vesors regard mining investment Is due to the fact
that In many instances they have not given the
business phase OF the question a proper consdera-
ton. Many a clear-headed man who would scorn
an investment in commercial lines which he could
not thoroughly investigate and understand has
poured assessment after assessment into hole IN
the ground which he could not even swear existed.
lie may have gone 10 the extent of sending a
representative to the mine-if there was one-who
possibly saw vein" and was allowed to pick
samples from 1t, have them picked for him.
These may have assayed WELL and he returned most
enthusiastic. The actual expense OF taking out this
ore. transporting and smelling it, may have been
more than II worth, but this the Eastern invest
or does usually figure out correctly. because 1t
could only be done by man familiar with sucn
matters. He is also unable to judge the value OF
title as the title to mining claim and the title
to a vein of running through 1t may be two
widely different things In some instances his stock
may have turned out to be worth many hundred
times its cost, but this is the exception. On the
other hand, to quote the words of the president OF
one of the large Denver trust companies:
Gold mining as Industrial proposition, not as
speculation, offers more secure basis for legIti-
mate profit than any other line of business not a
MONOPOLY The truth of this Is evidenced by the
success OF the Denver and Leadvle capitalists,
who grow Weather each month from the product
of their mines These not gamblers in
mining stocks, yet lucky prospectors like Tabor
and Stratton who have suddenly burst into splen-
dor through a lucky strike, but among them may
be counted the officers OF the largest and strongest
banks, trust companies and railroads, eminent law
yers smeter managers and public officials; in short.
the successful business men who have made study
OF actual mining business and follow 1t on
business principles. They of course sustain losses
but what commercial concern does not?-and in the
end their gains enormous"
COMPANIES on PAPER.
That immense profits being made out of min
ing stocks to-day Is indisputable but 1t is pure
speculation. one year ago twenty-five shares of
stock one from each of many legitimate Cripple
Creek mining companies. would have cost 81 5s
To-day these same twenty-five shares are worth
81 ST. and the advance In almost every instance has
been gradual and is actually warranted by the In
creased value OF the mines. The difficulty lies in the
fact that for every one OF these legitimate COM
panies with something really substantial back OF 1t
there are ten others whose stocks rise sympatheti-
cally with II that consist chiefly OF euphonious
name board of directors. gilt seal, splendid as
surance, a map and possibly more mining
claims located somewhere west OF the Missouri
River; and at a distance which makes investga-
ton next to impossible IL Is not always easy 10
distinguish between the good and bad.
The Colorado practice is to incorporate for 81 CO.,.
CO., and then sell the stock at from two 10 ten cents
a share, giving II working basis Of from $4,000
TO $4,000 Substantial mining men hold the value OF
a full-sized patented claim In the known district
Of Cripple Creek to be $4,000 regardless of develop
ment. Most OF the low-priced stocks however. are
backed by property on the edges OF the ore belt or
by fractional claims tunnel sites claims open to
litigation. The higher priced stocks, such lsa-
bella Portland Anaconda. backed by large
producing mines having considerable development
and large ore In sight most of them also
vestment OF outside capital in mining Is the forma-
ton OF close corporation for the actual purchase
development and operation OF mining property en-
investigate. experiment. advise and operate This
Is the me thod of the Colorado capitalists referred TO-
and Invariably yields the best results.
THE SHELTER linden.
The best Indicator OF the actual condition OF min
Ing Is the smelter. the greater part OF all ores
eventually finds its way there: and for the first time
In three years the shelters md their bins full OF
ora This means that the rise In stocks has cause