Albuquerque daily citizen. [volume] (Albuquerque, N.M.) 1895-1903, 1899-12-26
MINING AND MINING STOCKS.
L. q. Carson Tells why the Big Boston
Sto.k CompauIes Came 10 Grief.

Stosk Companies Came to Grief.
L. n. Carson OF Boston was In the city
looking up pricss on mining machinery
for his ,erty at White Oaks. N. NJ,
says the Denver Republican. Mr.. Car
son says that the failure Of the Globe
Nstlona bank. which has been attri-
buted TO speculation In mining stocks,
has hsd Q serious effect on the mining
industry Of the country.
"The trouble with most Of our eastern
people" said Mr.. Carson. lis that they
do not know how TO make the distinction
between mines and mining stocks. and
when they are induced 10 invest In min.
ing stocks which turn out dissstrously,
q. once they cha 20 their bad luck 10
mines.sThe late trouble wa due entirely
TO over cspitalix alton and booming OF
stocks which we're not based on q reason
able valuation OF the properties. Stocks
we're losted In Boston a. three times the
value Of the mines they represented. and
then the stock was rushed up 10 the
highest point that the public would
stand. There could only b. one result TO
such a condition OF affairs. To illus
trate how the sdvauee In copper stock
wa seized upon ~ the basis Of the float
ing OF any old thing ~ q stock G m.
psDy: Before l became interested in
White Oaks l was offered a copper prop
erty In Ariz INA, which l will not name
for obvious reasons. employed an en-.
gineer who made q thorough examins-
ton OF ths property. The price asked
was $4,000 and the only development
was a shaft connecting with . 300 foot
tunnel. The report Of the engineer was
that the property was not worth 5000.
and I did not purchase II. II 1 we're to
tell you the name OF the property you
would at Once reco5 nizs IL a. the foun1a-
ton Of one OF the companies that have
been fioated within the past two years
It wss placed on the market with q CAPT
tsiiz ,tion OF $1,000. 900 and sold at par
70 commence with, subsequently afvanc-
Ing to q premium Of nearly 90 per cent.
II has never shipped q pound Of ore, and
In my opinion never will until 1t passes
int the hand OF u practical miner who
vii, not attempt to pay a profit on a mil.
lion dollars with q 5000 mine. After
the company was organized l was given
an opportunity TO subscribe for the stock,
which Of course | declined. My people
bought q prospect In New Mexico with
much more development than the copper
property had for $4,000. expended AZ
much more In Its improvement and dur
ing the past six months have shipped ore
That Melted prod; of more than Z 5000,
We have paid no dividends, a. we are en-
gagged in development and improvement,
bnt we have more than 100000 worth Of
ore blocked out and can return In profits
~ u stockholders more than twice our
original investment. That Is the differ
oaoo between a mine and balloon mining
st els Unlisted until they burst. West
ern miners have been credited with all
kinds OF schemes that will not bear close
inspection. but when they are up against
ths average Boston operator they are no,
In II for q minute.
But while the fault IL with the stocl
companies and not with the mines,
an afraid that 1t will be some time be
fore the best kind OF a mining PROPOSE
tion will b9 looked at In Boston,"