The Seattle post-intelligencer. [volume] (Seattle, Wash. Terr. [Wash.]) 1888-1914, 1899-11-30
Beware Of the Shares in Which
You Are Asked To Invest.
Az INJURY TO THE INDUSTRY.
Legitimate Corporations suRe TO Re-
ceive . Setback Unless the Fake
Concerns Are Exposed - Five
Thoasand Companies In the
state, Representing Total
CapitalisatiOn Of $4,000, 900, 900.

Seattle In particular. ana the state OF
Washington In general, soon will have
achieved a choice reputation AZ q breed
Ing ground for mining sharks. unless the
press Of those communities most inter-
ested endeavors to foster mining as an
industry rather than bunko game
Complaint Is made In some quarters that
Heattie Is q poor town I'm which to find
mining investors. II this is not true IL
should be, for Seattle mas become the
residence Of many alleged mining COM
panieg that should be prosecuted for
fraudulent practices. II IL claimed by
men who watch the field sharply that no
fewer than fifty Of these cariousiy COM
pounded companies are selling shares
without having incorporated. No COM
munity can encourage such dealings any
Iengtk-<>of time without suffering In Its
reputation for commercial integrity and
losing any standing to which 1t might
aspire n mining mart.
The city is the home OF many response
BILE and weli-managed mining concerns
companies and syndicates-that suffer in
calculabie Injury from the lucrative con-
fdence practices of companies managed
with no other purpose In view than that
OF finding victims among the unsophisti-
Gated The men and money engaged
in trying to make mines out of mineral
discoveries In a practical and prudent
manner should be protected. and the best
way To accomplish this end Is to invest
in no mining stock that has not the seal
OF values upon IT. BY this Is not mean.
the positive certainty Of dividends. but
the assurance. based on the most expert
judgment to be had. that the property
tustifies a development investment. and
the further guarantee tina. honest and
experienced men will apply such invest
menf economically and scientifically.
Speculation In the cheap mining stocks
- "a f.hyf ats M N ned
treasury shares. has reached that Point
where a general slump OF confidence. dis
astrous TO a state industry az yet In en-
bryo. Is threatened, The disposition on
the part OF small buyers was never so
good. but this feeling will soon give way
To cynical disgust unless the frauds and
humbugs arc found out and pointed out
by everyone genuinely interested In the
fate of mining industry In the state.
Few persons realize the desperate ex-
tent 10 which this mining stock tebbery
has gone or have any idea of the bushels
Of beautifully printed o snarss that have ave
women with small incomes and slender
savings. The mining interpretations in
the state. outside of coal and iron, ex-
coed In the aggregate the extraordinary
number OF $500 The capitalization or
these companies, severaliy. ranges from
$4,000 to t2b. 600, 90. and presents the grand
and astounding total of S aa 900 600 II
this mass OF stock only brought l per
cent for a common treasury fund. or
cent per share on the basis OF dollar
shares n would furnish So. 900 .fsta-enough
money To develop dozen mining camps
in the most stubborn geological eondi-
items.
adjoining states. many years older In the
experience OF quartz mining. Oregon.
with one district alone dropping more
than 2ota stamps. has only ! bop incorpor-
ated mining companies. while Idaho, In
ali her hard rock mine developments,
from HALEY TO Buffalo Hump. and the
production of all her metallic millions,
shows only a total, or sn x,
explanation. Ii has been tho custom OF
Idaho 10 organize companies on the basis
of the milling value In the property. Ii
has become the custom OF Washington.
e;rteng inexperienced or designing men.
To organize companies for the purpose
either Of experimenting on improved
prospects or dsfrausinr the public, These
comparisons are not agreeable
- = -
What must Ne thought by rational per-
scns Of that Seattle company which has
Incorporated on the basis If sas.eo"eo :
Whsre are it, mines who manages
them. Is there person In the concern
who knows anything about mining, or has
high standing In the business or Industrial
world What must he the motive OF men
who without productive property. utter
such prepcsterosls capitalization, and
wha, can he the fate of mining corpora
the dollar in the open local market In
order ~ pay a dividend Of even one cent a
share Ia the remotest future this company
weuld have 90 earn from no resources the
sum ~ $3.50 sssl more than half as mitch
money a. has been mined frem The Re
public since its discovery.
How does sueh 3 company, having sSa-
60 fse Of ''Vaid ND capital. and supposed
rrosnects 10 develop into mines with funds
procured nj the rate of cent on a dollar
share. con,rfve 10 satisfy the requirements
az the Federal internal revenue law ON
the basis 81 iSs capitalization the com
panv should pas-RecGtdng II schedule 81
stamp dutlcs~cn its fully pad up carl
tai which must he iAe consider alton
named in the deed ~ which Il acquires SIS
tg.e tne sum ~ So az. and "cH SAcA
original Issue % certificates - stock for
every $3.50 OF face valUe or fraction here
az s cents This means an additional So
3D. fcr stock hook taxes. or n fetal outlay
of So 5&o, fer the pstNiieEN ~ dealing IRA D. e.
o.. COS capitalization in dollar shares.
II the company hiss a property of known
value 20 eNrlosf SIS policy should have
bean - say. So 40 ~ Incorporating for
81 ee.asi and multiplying the value ~ its
treasury shares ~ len or. better still. II
n had the ground valuable enough rs f8s~
tsfy s. FULLY gaia capitalization ~ 2. 49, To-
uss why not incorporate AZ S3s@ Az. ans.
fhns save ssses In tNss case II wotls
get acwa 70 tAe acTUalt,ios by selling treas
tvy stock r.; 81 a share. ~. ghat ca,A
never do because IL Is so much easter even
when YEA have ne properly worth met
stoning. save the names OF ca ms tu sell
enan shares at / vent eacA. or s1fo. ,H&u
II il 10 sell en- q mine preparing fog out-
put IA shares A. ss.sh each. si(e, a Eess,.
s,e person should prefer t. make ;ae lat
ter investment
This ~ simply cue e TIE gtar3se exam
;les az false grsssnsss undST whieh a great
number of companies wtta headquarters al
Spokane. Tacoma aud Seattle are tyAnJ.ink
the UNIV AIRY, the eFe3ejasas ana gAe 0azx-
lsslenced.
Every dollar invested in the Iassoyy
eAssn shares ped lied ~ these Concerns
works an eventual INJURY 60 taas ra~rttov-
taus companies engaged IN exploiting mp.
critics which si.e @en1ef aifls Ike an sssgg-
snoe Of profitable returns
While on ,Ais subject q may Re well sc
draw attention - a few significant sacts
that were better exposed ;haa gissseA ever
or suppressed. First 81 ali Washington
has nsines anG prospects raca fa TIRE
precious and assa metals. Snt It ass "a ~:
earned 10 title o. cg~e3fs as a uginia@ state.
This tn spite az the tac' thsi X hAs rec
eri ~ 5.A ifaSssTs~2F ti@ElS- repscSy itsFA ;
I.sp3 esn eep Capitalization 3f Z ever IS ag
the acute paint az becoming attractive 10