Bennington semi-weekly banner. (Bennington, Vt.) 1894-1902, 1895-11-01

last few months. have said that the
company promoter buys up most of the
private mining claims 1t would be more
correct to describe him as tho agent of a
promoting or exploitation corporation or
syndicate. There are plenty of these cor
porations now in the field, and the profits
of their operations within the last year
have been in many cases almost incredi-
BILE. Let us take, in illustration of their
plan Of operations, the case of single
mining claim. They have paid the discov-
erer, say, $40, 1000 in cash for it. They
send few men and sink test shaft 30 or
40 feet on the reef and take out several
tons of ore An expert examines the prop
erty and reports, and more of the best
specimens Of ore are assayed. The result
is embodied in prospectus and printed in
all the London newspapers. Subscriptions
are invited for the shares in the StruckIt.
Rich mine, "captial 4100, 900 $500, 000),
of which go, 600 one pound shares are Of
fered to tho public at par" 1t is explained
that 40, 900 fully paid shares and g20, 900
in cash are to be paid to the vender COM
pany. Public subscribers are notified that
they must pay Is. I'd. upon application.
and the same sum upon allotment on each
SDurG. rlNS SnllhAlSS LlOIO pCI SlluIG WILL
be due month after allotment, and the
balance Of 10 shilllngs as called for by the
directors.
If the promoting company is concern
in which the public has conference.-the
is, if it has engineered similar deals sue
cessfully beforehand if the directors NAM
ed also command respect, then, if the OK
~ l.. =, -. l.,
good, the public subscriptions will call for
300, 600 shares instead of the 60, 600 offered.
In that case the public subscribers will re-
ceive one-tenth to one.ffth of the shares
they applied for or perhaps none at all.
Such demand for shares of course, in
surcs their advancing to an immediate
premium, and as the directors can allOt to
whom they please among the subscribers
it is natural that thor friends are supplied
first. 1t happens almost daily, therefore,
that shares in new companies are quoted
at high premium as soon as or even be-
fore they are issued.
Take, for instance, mine in the Men
sizes West Australian) district issued last
week. The public received only 10 per
cent of the amount of their applications,
and the So shares sold at $40 the first day
they came on the market. This, of course,
does not compare with the Barnato bank
deal. The S. shares in this concern sold
at 1923 on the day they were issued. The
public got none of these at the issuing
price, the profit amounting to more than
$40, 600, 900, it is said, on the single days
dealings, all going to a little group of Mr..
Barnato and his friends. The present
market value of the total shares in this
bank, after the severe slump of u week ago,
is more than $40, 900, 900. These, and q
hundred other instances which might be
cited, make it clear that the speculative
feature of the mining craze is based upon
faith and not upon results. The reception
given to new issues depends upon their
sponsors and not upon the available
knowledge of the properties offered The
detailed prOspeCtuses with which the adj
vcrtising columns of the papers are filled
are rarely read by the people who rush
for the shares they offer. The intrinsic
value of the mines they are investing in is
the latest thing inquired about by speCu-
latOrs.
Tho EafIir market now dominates not
only the London Stock Exchange, but
tho boursc of Paris and the boersn Of
Dpr,in. il; fluctuations have n direct
effect upon the general money market
in fact, il las become, for the time be-
ing. the MOI; influential factor in the
whole financial world. As to the effect
Of the craze upon the public at large
in London, at all events, Truth hardly *
aggcrHtcd The facts when it said last week:
"Was South Africa composed of solid gold,
was every pebble diamond, and did all
Rhodes lead with certainty to fortune, the
excitement could not be intensified"
The stories of sudden afllucnce, of big
fortunes won by quick turn Of the wheel,
are almost without number. Pcnniless
Stockholders clerks even office boys of
year ago, are today big swells in the
City and important operators on Change.
The father of rather a wild youth who had
been the cause of good deal of parental
anxiety told me with evident pride the
other day Of the experience Of his son in
the Kaflir circus.
"You see, !" explained the fond parent,
enthusiastically, Jack had given me
great deal Of trouble. l told him finally,
just year ago, that wouldn't stand any
more of his wild ways. 1 paid his debts
for the last time and put him into stock
brokers' office in the city. Well, sir, that
boy has retired from business, retired, sir,
on a fortune of ESQ, 600 $3.50, 000), made
in tho South African market. 1 always
did think, even in his wild days, that
Jacks head was screwed on right"
Jack is only one of scores, but before
his example is held up for emulation it
would be well to suggest the probability