The herald., 1897-09-24
OFFICE OF THE HERALD,

OFFICE OF THE HERALD,
LOS ANGELES, Sept. 49, 1897.
The Klondike excitement is being used
as a means Of enticing investors not only
In this country, but also in Europe, and the
number of schemes which are being indus
triously promoted for the purpose of induc-
ing investment of capital in new enter
prises which have nothing but wind with
which to float them is simply astonishing.
The New York Financier. a conservative
authority of high repute, calls it North
Sea Bubble" and places the capitalization
Of the various Klondike enterprises
launched since the discovery Of gold in
that section at s1OO. .OOO,O 900. The same au-
thority goes on to say:
The list of companies inviting stock sub
scriptions to different schemes connected
with the new region is growing rapidly.
and unless a check occurs soon the total
bids fair to pass the 5000, 900, 600 mark. 1t is
true that this amount will not be paid in
cash and much less will 1t be used in de-
yeloping the resources of the mysterious
and alluring country to the north, but as
methods 1t is interesting, and would be
amusing were it not that the losses will
fall where they can be least afforded. No
where this side of Europe has there been
anything approaching this sudden craze
for participation in the promised profits of
a new Ell Dorado. England, France and
Germany are just now recovering from
the temporary insanity which prompted
the showering of millions in Kaffir stocks,
the majority Of which were worthless, and
1t will not be strange If America is destined
to go through the same experience. Words
Of caution will not avail to stop the sense
less stampede to put money in chimerical
and impracticable schemes outlined in
catchy language in the daily press. The
victims must learn the lesson taught by the
Kafir excitement abroad. The only re-
deeming featNre about the whole busi-
ness is that the awakening will not in
volve such widespread loss and distress.
Aside from one or two propositions which
are based on tangible promises, and visi-
BILE prospects, the majority Of the present
Klondike companies can be set down as
swindles pure and simple. If total of
five million dollars is paid into the various
projects in cash-and at least three of the
larger companies are said to be taking in
enormous daily ycontributions-it is doubtful
II one-tenth of the amount is ever used to
promote mining enterprises of any descrip-
tion. The magnificent offices fitted up by
these corporations were not furnished for
nothing and the men managing them and
drawing large salaries are presumably not
footing the bills out of their own pockets
AS the returns promised in the prospec-
fuses and advertisements are never less
than fifty per cent, it will be seen that the
output of the Klondike, to meet these ex-
pectations, will have to rival within one
year the total of the entire United States
gold production. as developed after nearly
half century of hard work, aided by un-
limited capital and scientific resource. But
the companies under discussion do not con-
stitute one one-hundredth part of the pro-
ducing forces now at work or en- route to
the Arctic regions. In other words, the
presumed yield of the Klondike, on the
basis Of the calculations mentioned, will
exceed many times over the annual produce
.tion Of the whole world as heretofore re-
ported. This is pure folly. The region may
be Immensely rich in auriferous material
but that 1t will produce more gold within a
year than one Of the older gold producing
states Of the Union is doubtful. At least
nothing to prove 1t has yet been forthcom-
ing. The moral is, that If people are deter
mined to buy gold mining stock they will
possess vastly better prospects of returns
in the shape of dividends by picking up
gharaa In MI
out the west
Another conservative authority, the Min
ing and Scientific Press, says, on the same
subject. as follows: 1t is but natural that
big gold placer deposit like that of the
Klondike should have its accompanying
frauds and swindles, but the brazen dis
, honesty of some of the concerns advertis-
ing broadcast almost transcends belief A
great many people do not object to being
fooled. but they like to have it done In a
sentlemanly manner. The raw methods
of some of these Klondike invest
ment companies is an insult to or
dinary intelligence. OF course It is
unlikely that any practical miner or
reader of this journal will be cajoled into
. uOiA0A . investment Ill SuCH ScnemeS,
which are mostly as meritorious as a prop
osition to extract sunbeams from cucum-
bers.
\ \ \
The duties of director in a bank are
BY no means ended when a set of officers
are elected to conduct the affairs. The lat
ter may be we'll reputed. financially re-
sponsible, and all that, but to be a di-
rector means to be one who directs, not
directs some one else to direct. director
In bank should know from his per-
sonal knowledge the class of paper dis
counted, and should have general over
sight of the business. Coming around one
night In year to elect officers and draw a
dividend is very remote from performing
the duties of director. What the law ex-
poets Of director should be known before
tho Office is accepted, but when once ac-
cepted he wants to look out.
+ =
The biggest nugget ever found in the
Klondike'' came down on the steamer Ex-
celsior to San Francisco on the 18th inst