Custer weekly chronicle. [volume] (Custer City, S.D.) 1890-1931, 1903-07-18
The Mine Promoter.

we do not underYalue the services o1
: the mine promoter, his work is just as
n ecessary and just as important as any
other branch of the business Of mining.
It is through the efforts of the mine
promoter that promising prospects are
converted into mines, and it is through
his influence that they are put Upon a
paying basis and made to yield divi-
dend. But there are certain methods
pursued by some promoters mot many
which we do not approve and cannot
endorse. We refer now to a custom or
line Of policy followed by some which is
something like this. They come into a
mining district and give 1t out that they
are looking for a mine. They find
plenty of prospectors and mine owners
who are only too anxious to drive them
out to examine their property and they
tind one at length which suits their pur-
pose. 1t is a small vein which has a
streak or pocket Of rich free milling ore.
There may be q group Of claims, and
there may be some large veins Of low
grade ore running through them, but he
does not take much interest in these, al
though they are in fact the only veins
in the group that will develop into
mines, and that can be made to pay a
dividend. But it is the rich little pocket
that he is after and he obtains bond
on the property and sets couple of men
at work taking out the specimen ore.
When he gets enough of these rich free
gold specimens to fill small sack he
goes east to interview his friends and to
interest capital. He opens up his sack
and shows these specimens and he says
this is the kind of mine l have and
this is the kind of ore get out oft. OF
course the sight of the yellow metal is
always attractive, and he commands
their attention at once.
The capitalist asks "What do you want
to do with this property The reply
is II want to organize company and
sell stock enough to build a mill to
pound the gold out of this rock. This is
all want, and that is all that l want,
and that is all that is needed to make a
fortune in short order. Well SAYS the
capitalist don't mind putting little
money into thing which presents as
good showing as you represent, and I
have two or three friends who I think
would like to 60 in with me. We will
organize the company, put men at work
and order mill, 1--WE can get time on
that) and think we can soon cell stock
enough to have sufficient money in the
treasury to pay for the mill and mine.
Now all the prospector asks for the
property is ten thousand dollars. Tire
promoters price to the syndicate is $4O,-
600 and the mine is capitalized at l,OOO,-
600 shares at $l.O0 per share. Now the
promoter is in no hurry to put mill on
the mine, he pretends to be but is not,
and before that time arrives he has sold
stock enough to net him $4,000 over
and above the $4,000 which he pays the
prospector for his mine. The deed is in
the hands of the company. The promo
ter has made all out of it which he cal
culated to make, and he is done and is
looking for another mine. About this
time the superintendent in charge of the
work at the mine reports thatthe pocket
is exhausted and there is no more pay
ore in sight. The President and direc-
tors hold meeting and they conclude
that there is no use to put mill on that
mine, it wont do at all, there is nothing
to do but to sell stock as long as we can,
unload and let it 60. This they do and
perhaps save themselves by unloading
on to the public and that is the last that
is heard of the fabulous bonanza the
Rise and shine" Now in all this tran
saction there has been nothing done
which could be called illegal, nothing
which could be called a swindle. But
there was deception practiced on the
part of that promoter from the fact (if
he was experienced) he knew that little
blow out of rich ore would never make
a mine, but it was selected by him be-
cause it was the easiest to sell. He knew