The San Francisco call. [volume] (San Francisco [Calif.]) 1895-1913, 1895-07-25

man with q vivid Imagination to write
brilliant romances about it, floats it on a
capitalization of q million. Men and
women invest their small savings and lose
them, of course, and few months later
the promoter cleans up his winnings and
BUYS brownstone house. Then he locates
another hole in the ground, repeats the
programme and lands lot more come
ons' This is how Mr.. Stump described
the process last night: The idea is to get
a responsible company to go into mining.
AT present it is gamble, and the biggest
buffer wins. There are thousands of
mines in this country that might be devel-
oped and would be if there were some
wealthy concerns to develop them. Here
is an instance: / have in my hand
the prospectus of mine fioated in the
English market. The promoters bought
it for $4,000 and they have capitalized it
at 100000. +"
The errors in this are that promoters do
not buy mines, that men and women do
not invest their small savings in mining
properties and that there is absolutely no
gambling in mining purchases. The
whole statement is miserable tumble, in
which speculation in mining shares is con-
founded with dealing in and development
of mining properties, and in which the
functions OF the promoter are grotesquely
misrepresented. Western men, of course,
understand these matters; but as the Cali
fornia mining industry is just entering
upon revival which must soon throw
into the shade the brilliant past history of
gold in the State, and as Eastern and
European capital is pouring in for the
purchase and development of mines, such
statements as these may do serious harm to
one of our greatest industries by rousing
feeling of distrust.
Of course Mr.. Stump could NOT have
made assertions SO insane and harmful.
When he was in California few months
ago, he suggested plan of which this pur-
ported interview is screaming distortion.
He proposed then that commission be
constituted to check "wildcatting" by
standing between owners and prospective
purchasers with an official appraisement
of mines value. Even such scheme as
this is unnecessary now, for investments
in mining properties are made at present
in a manner wholly different from that
when "wildcatting" was possible. Not
only has speculation in the buying and
selling of mines practically ceased, but
mines are now being bought for develop
ment and only after very thorough scien-
tiic inspection has been made. The
promoter nowadays is most useful
functionary, but only as an agent for
bringing owners and purchasers together;
and as he knows that any misrepresenta-
tons will be quickly discovered, he would
not dare, even should he desire, to make
them. The methods at which the World's
ridiculous article points passed away
many years ago.
Mr.. Stump is probably aware that
strong company has been recently formed
for advancing money TO mine-owners who
are unable to develop their properties.
This ought to prove one of the best meas
ures ever devised for promoting this great
industry. 1t should result in discovering
the real value of every claim, and thus the
uncertainties attending purchase will be
practically eliminated, and the result
which Mr.. Stump desired will be secured
quite as well as by the method which he
proposed some months ago. The mining
outlook in California is better than it has
ever been before, and it is deplorable that
leading newspaper should do anything
to discredit it.