The record-union. [volume] (Sacramento, Calif.) 1891-1903, 1895-06-15
THE LONDON MINING BOOM.

Investment of English capital in for
eign enterprises goes by fashions and
fads. The speculative spirit of the Eng
lish people can take on but single phase
at time. From 1876 to 1856 investment
in cattle and cattle ranges in America was
the ruling fashion. The spirit of specula-
ton rose very high, and hundreds of en-
terprises in Texas, Wyoming, Colorado,
Nebraska and Dakota were fioated on the
English market. The usual plan was to
incorporate the scheme and sell the stock
in London.
A more cautious class of investors in
sisted on the purchase of what is known
in English financial parlanoe as deben-
ture bonds. A part Of the capital en-
ployed on the purchase was in the form
mortgage upon the actual property of the
corporation, was still held in the nature
of q worcestershire stock. which stock
was limited in its participation in the
profits to the rate of interest written into
the debenture.
The most notable of these schemes was
the Swan Cattle Company. The exact
figures relating to that corporation are
not now remembered, but an approx
mate statement will serve az an illustra-
ton of the method of the time. The CAPT.
tai stock was fixed at about $4,000 900.
One-halfws sold on the English market;
the other half was retained ia America.
The prospectus claimed 100000 head of
cattle with q vast acreage Of land owned
in fee simple. or possessed under
At the end of the first year, after
the stock was sold in England, the
American managers sold most of the
cattle, and declared dividend of about
so to rs per cent. of the capital stock.
This created great furore. The shares
were known ss five-pound shares; that
is, SIS share; and they went to the
enormous premium on the London mar
ket of twenty pounds to the share. Dur
ing this boom in the stock the American
holder sold out. That was the last divi-
dend paid by the Swan Cattle Company
Its ranges were exhausted of their feed;
Ats capital had been realized upon and
divided up as dividends; and the wreck
age of this transaction was scarcely
worth saving. It is doubtful whether the
corporation maintained an existence of
more than three years.
A little later investment in the tim Der
lands of America became q prevailing
fad. The stock of a numbering enter
prise, located in Humboldt County, was
sold on the English market for about
$1,000. 900, and was so manipulated as TO
declare dividend, producing boom in
its stock during which the American
holders again sold out.
From about 1880 to 1856 the vineyard
fad became contagious in London. A
vineyard located in Southern California
was sold to London investors for $500. 900.
In less than one year after that sale it
would not have brought under the ham,
mer $4,000. 1t was an absolutely ruinous
enterprise to its proprietor, when the
fiery ardor of the English investors came
to his rescue, and as if by magic con-
verified his bankruptcy into great wealth.
The prevailing fad in London at the
present time is gold mining. It arose out
of the success of gold mining in South
Africa. It was further reinforced by the
accidental discovery of some very rich
mining property in California, notably
the Utica, at Angels Camp. It is said by
those well acquainted with the facts that
just now anything in the shape of mine
will sell on the London market. It must,
however, be in well-known mining re-
gion, SO as to bear upon its face the SEM
blance of reasonable probability. Like
all its predecessors. this fad will score its
record. of notable swindles. Already
there is a combination of mining specu-
lators formed to take up large areas Of