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

ALREADY OPERATING IN SEATTLE
AND SHOULD BE WATCHED
IL VIII BE Well for Investors to
Know With Whom They Are Deal
ing and See That worthless stun
il Not Worked on ON Them-Thc
Mining Excitement Gives SeamPs
An Opportunity to Ply Their yO-
cation.

There Is class OF mining brokers. at
least one Of which is operating in this
city. Of xhors II becomes the investor in
mining stocks 10 beware. They take ad-
vantage OF the Prevalent interest IN the
mining industry 10 obtain money from
those inexperienced IN the business with
OCT giving any equivalent, and are simply
s1sndssrS--as much as bunko stserers-
Their fay0rsr@ method is 10 obtain large
blocks OF stock in worthless mining COM
pauies. the names of which closely re-
seEnbls those OF companies having good
producing mines or welI-deveioped pros
poets % merit. They take advantage OF
this similarity OF names TO sell stock in
the worthless property on the presense
thst Il IS stock In the valuable one Ore
firm In this city has perpetratea this
swlndis by selling stock in an abandoned
claim in California, on which no assess
nIent work has been done for three or
four years. on tbs representation that It
was stock IN one Of the best producing
mines IN California, having the same
name.
Another trick TO which they resort is 20
bond an uadeveloped prospect for a small
sum Ia cash ard q large block of stock.
and then transfer il 70 corporation
named hi close imitation OF one having
good property. on which work has been
done or is being done. Thus pirating the
name of a company which is spending the
proceeds OF The sale OF Its stock in honest
work and trading on the good standing in
the market thus acquired by the stock OF
that company, they Hood the market with
worthless stock when the swindie Is dis
covered. cloud OF suspicion is cast OF.
all mining investments and confidence III
the whole industry is impaired by the
operations Of these parasites.
Il number Of Instances Of this kind have
recently been brought 10 the attention OF
the Post-Inteltigencer and there are doubt
less others II is rarely that a cent of the
money paid for stock goes into the
ground. i usually goes TO further than
the pockets OF the promoters promoters.
not OF mines. bat of their own enrichment.
The common stock OF such companies is
rarely pooled and Is thrown OH the mar
kei In competition with the treasury stock.
Under stet circumstances. the treasury
stock rarely iinds any sale and thus no de-
velopment fund is raised.
There Is one glazing instance. we'll
known among mining men. in which all
these elements OF dishonesty was COM
bined. A company WAS organized under a
ns nae closely resembling that of q COM
pany which had done considerable devel-
opfneut on a good property. 1t had a con-
tract for a deed on some claims in the
same district. but which were innocent Of
even a stroke Of a pick The treasury
Gates for it ever issued were in payment
for the claims and of the attorneys fees.
The common stock was rushed into the
market by a broker who quoted the stock
OF the honest company. whose name he
pirated. st 2i2 cents. while he quoted stock
in his own swiadle at G cents. Although
he had been employed 10 sell the treasury
stock. be sold only his own common stock.
Meanwhile the bearing of the honest com
pony's stock, through his methods. had
stopped sales and thus work has had 10
he practically suspended The vendor of
the claims tried to change the terms Of
his contract and. In course Of a discussion
on tie subject. the original contract waS
lost No deed had ever been given and
thus the company had no title to anything
and its stock is 40 much ornamental waste
paper. One of the incorporators is en-
yoring 10 gather Ii together. and pro-
poses TO transfer TO the company and their
group Of claims In order TO put 1t on its
feet again.
This Is probably only one OF a number
Of instances OF The kind. but il has been
the talk OF mining men for several days.
and has done much TO prevent the sale OF
really valuable stocks.