The Seattle post-intelligencer. [volume] (Seattle, Wash. Terr. [Wash.]) 1888-1914, 1897-05-23
MINES AID MINING STOCKS.

Al time like the present. when new
mining companies are putting their stock
on the market nearly every day. il be-
comes the investor 70 investigate carefully
the character of the property and OF it's
management before purchasing stock.
Mining. like every other occupation. has
Its disreputable hangers-on. who sell stock
In worthless prospect. trading on the
reputation of a good mine adjoining II.
or who float treasury stock for the osten-
sibie purpose of developing q claim. but
really appropriate the funds to their own
use. In too many instances large part
of the proceeds of the sale of treasury
stock Is eaten up in commissions paid to
brokers or .'eappers." and by the time
several persons have had their rake
OFF" little. il any, money Is left to be ex-
pended in development
The average investor in mining stocks
is not familiar enough with mining TO
judge of the value of claim, even IL he
had the time and money to visit 1t and
make personal examination. He can.
however. demand that the promoters shall
report from a reputable mining engineer
Such a man should be required to show
better credentials than his own bare state
ment that he is a mining expert" The
investor can also demand that the money
he pays for stock shall be devoted TO the
purpose for which ii Is paid, with only
a reasonable commission TO the solicitor.
He can assure himself that the promoters
OF company are men of integrity. not
harpies OF the class which always comes
to the surface during boom.
The wholesale Incorporation of million
ject of much criticism, and there is GER
tainly danger of its being overdone. There
is this to be said in favor of the practice:
That a prospector cannot show his faith
In his claim more practically than by ae-
cepting stock in payment for it; also. that
corporations afford numbers OF small in
vestors an opportunity to accomplish by
cooperation what they would be power
less to perform singiy. The aggregation
of small amounts Of capital. honestly and
skillfully managed. may develop a paying
mine, and frequently has done go.
On the other hand. there Is too great
tendency to place treasury stock on the
market at prices so low that they cannot
realize enough money TO develop and
equip a mine When the fund is exhaust
ed. the company may find itself the un-
happy possessor of an unproductive hole
in the ground. Only the expenditure of
more money can make 1t productive. and
the only ready means of securing such
funds is to induce the holders of common
stock to place certain proportion Of their
holdings In the treasury. All must con-
sent. In order to accomplish this end. and
a single obstinate person may block pro-
gress by mis- refusal
IL the company is to carry its projects
TO successful issue, all the common stock
should be pooled until all the treasury
stock is soid or until the mine is on
paying basis, as may happen before the
treasury stock is exhausted. 1t should be
provided at the inception that, IN case of
necessity. the holders OF common stock
shall contribute further amount of stock
TO the treasury. Ia order to enable The
company 10 develop a paying mine. The
purchasers Of treasury stock will then be
| assured OF receiving value for their money,
| II 1t is possible TO make the prospect into
a mine. and the promoters will be COM
| PEELED to look to the development OF a
mine for the reward OF their labors. and
not TO speculation In their stock. or to a
''rake-oiT'' on the treasury stock.