Iowa County democrat. [volume] (Mineral Point, Wis.) 1877-1938, 1895-11-14
AlNt'lR ANlNAlRS.
Facts on the South African Gold
Mine SpNruktinn

London has witurSs,N au rnd-ar-thr,
century South.SM hubble, anL the
collapse seems to have come, although
rs yet there are mo signs tlWlI bhNre
win be a verihratinn of the prediction
Of Il writer In the Ninetranth Century
to the ctIN't that the rnllaa~c must l~
$50 hugo that the entire huSln,NSs
world viii feel the shork"
London has seldom heNn Disturbed
10y such a fury OF speculation as tihat
whiuh has taken place In the SharNS
Of the South African gold=mtncs, 'lMc
mining market Furnished tine int"r.
cStmg news of the day toa large mum,
hrr of 0nc English people who poulNI
their money into hrokNls' offices. AS
much aS t2a,nO u week WAS expended
in advertising new ventures. Nhrog-
morton street was often 81 Cruw'rd
that the police were called upon I" TN
tcrfCrc. Many stockholders doubled
thcir s,talIS. Everybody talked about
the WitWatN lSlwnl and other minCS,
and many threw their money into the
pool. where II was managed by those
who controlled the properties very
much after the manner In whrh ulw
own Mr. Jay Could was accustomed
to manage the money that the Nlmnhs
Of Wall street were wont IN ldS day
to invest In Ibis various railroad ven
nrN
SO fierce has been the speculation In
these South African mining shares
Uhat the Wltwatcrsand shares rose
from I3o. 600. 900 10 El5O,OoO,OOO Some
shams rose 5000 per cent. Ia few
months, although they had paid no
dividends.
Naturally one would expect a col
lapse after such fcverissh speculation.
But the property represented by the
shares, according 10 honest and cap
able engineers who have examined II,
Is Of enormous value. lNhe WitwatnrS
rand formation IL more tmn Iifty
miles long. and the works of the mines
extend over twenty miles of this dis
lance. There ar" employed about the
works 10000 native and 5000 Euro
pcan miners, and There are 200
stamps IN operation. Moreover, this
body Of ore, which Is more lrgularly
distributed than the ore Of any other
gold region In the world, shows no
Signs of decreasing, and Dr. Schwels
ser and Mr.. Hamilton Smith, the cA-
ports who examined the mines, csti-
mate the value of the gold in the wit
watcrsland district AZ between 1900,
900. OON and E3500OO, 900. Besides, the
profits Of working are cn1rmous, cs~
pe.ially since the application of what
il known as the cyanide process Of OK.
traction secures from 50 to 81 .pcT cent
Of the gold in the ore, instead Of the
30 per cent that was the rule under
the old systems. Nevertheless neither
the wealth Of the region nor the profit
AT which the mining Is carried on Sus'
talns the prices That have been Oh.
tanned FIR the shares IN the London
market The writer In the Nineteenth
Century estimates that If next year
he mines make n prpni Of L35Oo,0Oo.
or II 100000 more than Me total
Profit of 1891, the dividends would he
only : II per cent. on the market
prices Of the shares In September,
when speculation was at Its height.
The market has been manipula ed.
The several companies owning and
operating the mines are small. the
average capital Of umue being abo1it
f15O,OOo the shares being II each,
ana The fcw shares That are held ont
side ~ the control are sent up ana
down by means ~ news manlfnc
turcd IN South Africa. II Is another
case of gullibie public with plenty
Of money waiting imfntiently for an
opportunity 10 invest, and lOt or
shlfty directors with talent for dis
ttTldng r1inors and n greed for
money.
Fortunately for the commercial
world, no great banking houses seem
TO be In danger, and the evil c0nse
quences Of collapse may therefore
be minimlzed. Iiarper's Weekly.