The Seattle post-intelligencer. [volume] (Seattle, Wash. Terr. [Wash.]) 1888-1914, 1897-07-14
CITY OFFICIAL PAPER
SEATTLE. WEDNESDAY, july -.
PRUDENCE IN MINING SPECULATION

PRUDENCE IN MINING SPECULATION
Before the evil assumes proportions sus-
fcien;ly grave 10 menace our interests
there must he & decided stand taken
against wildcat mining stocks. There can
be 10 doub. that sufficient mischief has
already been aone 10 arouse the people %
this state 10 the Threatening danger Mir
ing eanDo: be- made a success By gambling
in stocks. and Cor that reason stock ex-
changes viii be for some years q diSad
vantage. Sven With honest intentions.
The members of i stock exchange cannot
investigate every stock presented Cor list
Ing. and temporary excitement is apt
- :,e too readily accepted as d guarantees
OF a permanent value.
The news cones from Canada that some
of the cities are already oversiocked and
the records az our state department bear
witness 10 the enormous number Of in
corDegated mines compared with that Of
mines In course OF actual operation. 4
recent visitor 10 Canada speaks dolefully
OF the outlook. hui he bases his complaint
upon what would gecTn 10 be a very wise
provision. zone OF the disaEreeable
things FELLOW stumbies up against" ha
says, ''is the law In Ontario prohibiting
ilic sale of British Columbia stocks by
authorized agents until such companies
have been registered In Ontario ana state
ments of their condition laid before the
proper authorities"
This may be a disadvantage to the stock
broker, but II affords excellent protection
10 the buyer.
Those who desire 10 see the mineral re-
sources of the state developed cannot ap-
prove Of the methods too generally adopt
cd. a prospect Is aied upon, ana bef.5s
1. can be known whether It covers COM.
tncrciai value company is Incorporated
Tor 100000 and stock is peddled out AT a
cent or SO a share. Even AZ cent share
this would Imply a value Of $1,000. No
prospect IS worth that sum. ~ uaer.
ohance IL may prove 10 he valuable. Ia,
In this state. where the ore Is usually Of
low grade. tho whole value OF most mines
They arc like qusrties. where the stone
has bur ht'le value until capital and la
hor have howcd It's contents into bloeks
and placed them upon The market
The first inquiry before incorpsrstir..
company. or st teasI buying shares b,
II. should he the cost Of turning the rocl,
into mer,Aantahle gold. Too many H.
vesioTs are captured by the example az
the Douglas island mines. WHERE IL -
eAnlatnssl. ore averaging s. is worked ~
profit. But the very important facts
are entiFeiy overlooked that the Tread .
well mines are INN suse bodies eolerin.-
large number % Claims: shat the ro~s.
r. close 20 side water and that fortuna
vas swallowed up before a dollar wss
earned above expenses
There are excellent mlneS in this state
and in British Columbia. but thar f...
does net adj any value 60 hundreds AZ
properties Incorporated WITH a huge cam.
tai on paper, Tie buyer must a.~-rfm,-
inate- There is great risk uu5er .ha
most favorable conditions. bat before ia.
,estmsn; s. made there should b. .,,rts p,
conditions insisted uron Il wcnfa IL.
an excellent preeagsioa X incorporation.
OF amy mining property were rrahni.et
until the claims owned by t5 were nat
,ntsd. New many compfaie> are based
eaiy upon the location aud She oa.ssss,.
ef one years assessment may lose then
even ,he shadow ef s. hope ~ retuvss.