The Seattle post-intelligencer. [volume] (Seattle, Wash. Terr. [Wash.]) 1888-1914, 1897-06-08

Inc aftenflop OF the redders of tHs fosN-
InteiliGencer Ii called particularly 10 an
article In the news columns describing the
EwindlsH which are being perpetrate9 In
Che sale OF mining stocks. Companies are
being incorporated which own only All
utterly undeveiored prospect, and some OF
which own nothing al all They ars given
names in imitation of those Of companies
which are prosecuting work on claims OF
proved merit. and thus good reputation
IL stolen az means Of marketing worth
many Instances. Is not pooled. and thus
tie treasury stock has no chance of sale
In competition with Il. The consequence
n that no fund for development, Is realized
and the stock IL so much waste paper for
Il represents nothing Of any present value.
The only value possessed by mining
claim Is the possibility OF its being de-
vcloped into a mine. This can only be ac-
compiished by the expenditure OF money
IN honest. sksiifui work.
Grave doubts are expressed by many
mining men ,,s to the wisdom OF ineorpo-
rating a company 10 develop a prospect.
The prospecting work should properly he
done as preliminary TO Incorporation,
and only when the promoters have proved
by such work that the prospect can be
fered for sale TO the public. The objection
In raised. however. that such a policy
would shut out the small investor from
engaging In tha mining business in so new
n country rs this. and Instances are quoted
of good mines which have been developed
from prospects by the sale OF treasury
stock. This objection may have some
force. but II is certain that the flooding OF
the market with large blocks of stock Ia
liable to divide thu capital available into
80 many small funds In the hands ~ dig-
fersnt companies that II will he exhausted
before each company has anything more
10 show than good-sixed prospect hole.
This evil may be avoided. and the small
investor let In on III. ground floor" nv
the organization OF development comma
MES which will do the preliminary work
OF developing and. when they have proved
that the claim can be made mine. will
organise company 90 carry the work
further.
In any case. investors Should remember
that the mining Industry. like every Other
has its swarm Of parasite swindlefs. who
seek to gs, their money and give no re-
turn. They should require that the nro-
motors Of company show n fayor,b,a
report on It's property from a MINING en-
gIneer OF repate. that the common stock
be pooled until tho treasury stock
has been sold. or enough OF Il
to put the property on produce
Ing basis; that mining be under ,ha
direction of skilled superintendent, that
the stock they buy Is what II Il represent
ed TO be, aud not a worthless stock nirst-
ing the name - company which has
earned value fer its stock by work
opening bodies OF valuable ore. Care
should also he taken that too large f,
proportion of the proceeds 81 sales or
treasury stock Is not absorbed IN broker
age: every cent over and ahave an ads
qnate compensation for services should
70 into the ground. and no salaries should
30 paid officers until tte company IS eara-
ins an income from sales ~ ore. vxesDt
perhaps to the superintendent
ny observing sheso precautions Investors
will escape being sw.adlci ~ the eaas 81
rsscals who trade on thsif ignorance asa
credulisy. and tho mining Industry Will
grow 10 hc what II should he. one % the
chief sources OF wealth to ias community
and the chief means o. restoring general
prosperity.