Tonopah bonanza. [volume] (Butler City [i.e. Butler], Nev.) 1901-1909, 1903-06-20
A LONE MOUNTAIN
NINE CLOSED DOWN
Operations in Esperanto Stock Brings
About Such Effect.

Ihe Board OF Directors NJ the
Esperanza Mining company have de.
cided to close down the mine indeiin.
.itely. Mr. Key Pittman, its presi.
dent, being interviewed on the sub.
ject made the following statement
The company owns several
claims, one of which is an undevel-
oped mine. | mean by this, that on
the Silver King claim a lode crops
for 300 feet that has an average
width Of three feet. Within the
ledge is "a pay streak averaging in
width from five TO twelve inches that
averages 5000 per ton. This ledge
is developed with a tunnel and a
winze to the depth of ninety feet
The ore in the bottom Of the winze is
as rich as it was on the surface and
shipping ore can be produced. Seven
tons have been shipped, which gave
at least returns to the value of $500
per ton From these facts one
would naturally inquire why the mine
was shut down. In justice TO stock
holders we must state the reasons.
1t will be impossible to further sue
cessfully operate the mine without
many improvements and appurten-
ances. HOSTS will have to be placed
on the ground, lumber provided for
timbering, houses erected for the use
of the miners. teams provided for
hauling ore, etc. This requires
money, and unfortunately we have
no money in the treasury.
- was informed at the meeting
Of the board of directors that the
president, A. G. Cushman, and the
secretary, H. c, Cutting, had upon
the organization Of the company
promised TO sell sufficient treasury
stock for all purposes. 1t now APP
pears that many thousand shares of
the stock of the company have been
sold on the board of the San Fran
cisco and Tonopah stock exchange
and the treasury has been neglected.
The stock is now quoted on such
board at six cents, consequently we
cannot sell treasury stock for more
than six cents, and we consider it
better to close down than sacrifice
treasury stock of a legitimate com
pany.
Without intending TO reflect
upon an individual broker of such
stock exchange and without ques-
tioning the honesty Of the motives
that inspired them, we are forced to
maintain that such exchange has
constantly misrepresented the value
of stock Of mines in this district and
has done more to retard develop
ment than any other cause.
THE stock of only few mines in
this camp is ready to be placed on a
stock exchange, Nearly all of the
properties are still selling treasury
stock for development purposes.
The stock cannot be sold for less
than the treasury price, and so long
as it has fixed value the common
stock cannot sell for more. Small
blocks of stock, upon the organiza-
ton of company, are customarily
given away, but generally under the
solemn pledge that it will be held
until the company is financed. This
stock, through the faithlessness OF
the holders, gets into the hands OF
some improvident and poverty
stricken nonenity whose destroyed
credit and an immediate need of luxu.
ries, compels him to sell at any
price. He may have only hundred
shares and yet the sales of that hun
dred shares fixes the price of thou
sands of shares of treasury stock,
that as a legitimate investment are
worth five times that price. The
stock quotation of the San Francisco
and Tonopah Stock Exchange, tC
the people of Tonopah, are absurd.
There is more Tonopah stocks sold
in Tonopah in one day than in San
Francisco in week. Those stocks
that are not pawned as above stated,
are not sold, and the reported sales
are wash sales. This is apparent
to Tonopah people who are familiar
with their value here. and their
quoted price on the exchange.
can call the attention of the exchange
to some of those properties if it
desn es proof Of the assertions.
When "a person buys treasury stock
in company he is assisting to i'm
prove his own property; when he
buys individual stock in an undevel-
oped mine, he is frequently assisting
ia shutting down the property he is
specializing on. u"
EradricL The ,Ipyelpr