The Wichita daily eagle. [volume] (Wichita, Kan.) 1890-1906, 1896-01-23
TAKES GOLD TO NINE GOLD
Question of Money Not Cutting Figure
Out at Cripple Creek

Out at tTapple CEeth
Cripple Creek, Colo, Jan. 22.-Brokers
in mining claims report many sales OF
acreage prospect properties in outlying
sections of the district. These claims
are to form the basis Of a stock COM
pany in nearly every case and they
are being bought at a rate that is al
most appalling. There is a question
whether there is money enough availa-
bic TO do the vast amount Of develop
ment involved in the working Of all
these properties in a legitimate way
and the danger is that the market will
be so overdone there will be no sale for
the treasury stock 10 such Of the COM
panies as intend to so raise money for
work Should this condition result
from the flood of interpretations the
effect VIII be detrimental to the camp.
The properties will be left idle after the
few dollars raised from sales of small
lots of treasury stock have been expen-
ded and the corporation will be left
with a dead company on their hands.
This is a point the founders of new
companies will do well to keep in mind.
If they are raising a pool among their
friends and can see sufficient funds
ahead to allow the exploiting Of their
grounds, they are in a fair way TO do
legitimate mining and the fact that they
are outside of the present producing
area need not discourage them. 1t is
evident that many of the new corpo-
rations are of this nature. But the men
who are going blindly ahead, buying
anything that has a name and loca-
ton certificate, incorporating it and
throwing their treasury stock onto the
mercy of the public, are in fair way
to reach the end Of their rope by the
time the deed from the locator is of
record and the larger share Of the stock
issued to the promoters.
The intelligent stock buyer will want
70 know what may be the chances for
this property being worked If he buys
a block of new stock and leaves the
chances for ninety-nine others doing
the same open to the odds that ninety
five Of them will buy in some other COM
pany, he loses all right to be clasSed as
intelligent and had best look out that
the $500 he invests for say 10000 shares
does not go to give all the additional
value the 100000 shares taken by the
promoter ever inquire. Five hundred
dollars will not go far toward develop
ing ground that may require $1,000 to
prospect and it :behooves the investor
TO make sure there will be enough 9th |
ers TO join in to make the company a |
go.
The mining country IS covered with !
good mining claims partially develop |
ed and in the hands of stocked compan- !
les that because of the false pretensions !
they occupy are classed as fakes, when |
In reality they should be marked with |
idle for lack of money to develop" |
There is danger that a large percentage |
of the companies now being formed |
TO mine IN Cripple Creek will end in this |
way. 1t is too much to hope that even !
all intending to honestly and economic
ally expend all money received from /
the sale OF treasury stock viii succeed |
in getting the amount required. If they |
should do so, the possibilities of the Grip
pie Creek district might be told by the |
end of 1896. whereas 1t is more reason
able to expect that there Will be good |
ground open for prospecting and big |
mines being found twenty years from
this date. Companies enough are now
being formed to dc all the work that |
Will be done the next five years. There
would be no objection TO this if it was
established that these would |
do what is to be done before Cripple |
Creek can attain the full height of its !
greatness. Every stillborn company or |
each one that dies at a tender age is
certain TO disgust some one stock buyer
with the mining business in general and |
in particular with Cripple Creek as a
field for operation; so great is the need
for assistance in the immense work
ahead the camp cannot afford to lose
a single friend. Cripple Greek cannot
pledge faith with the investor who goes
into this class of companies any more
than 1t can with the one who is led into |
buying stock in a company that has no !
valid title to any ground within the dis
-rict; its rewards are for those who
work on intelligent lines TO find and
mine veins within its limits.
Stock in a legitimate and we'll man
aged Cripple Creek company is d good
thing but no Cripple Creek company
,an be legitimate and well managed I'M
ess it has work outlined intelligently
and money to do it with.
Max Strauss, a Baltimorean, now res
dent in Denver, has spent several
= eeks in camp buying up a large tract
II acreage properties. He has secured
bout 400 acres, distributed over the
district, lying on Bull, Gold, Carbonate,
lenderfOOt, Grouse. Ryolite and Copper
mountains. Yesterday a cash payment
# $4,000 was made to bind the sale OF
sixteen properties. Rice. Ish & Com
oany made the deals. Mr.. Strauss is
presenting capitalists on the eastern
seaboard. Not all the arrangements
nave been perfected and the details Of
he sales VIII not be given for publica-
ion at this time.
The newly formed Millionaire COM
oany is backed by Pueblo people who
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