Arizona republican., 1903-01-19
Mines and Minerals ef Arizona
HINDS' OPERATIONS
In Which Phoenix Men Have More
 Than Passing Interest.

The publication by The Republican Saturday morning of the arrest of J. T. Hinds of Prescott in Boston. came as a surprise to most people in Phoe- nix who knew the man. There were some, however, who by reason of their dealings with him had occasion some time ago to suspect that there was something crooked in his operations, the suspicion being caused more than anything else, by the fact that he was so slow fulfilling his end of contracts made or rather in not filling them at all.
 It is known that one and possibly more Phoenix mining companies had entered into negotiations with MT. Hinds with a view of securing money for development purposes through the trust company he represented and it is said had paid him neat little sums O.; money for reporting on the properties proposed to be bonded and for other expenses and commissions in perfecting the deal.
 The arrest of Kinds. while it does not necessarily reflect on the bonding scheme if backed by a good trust com pany and represented by honest and capable agents, will perhaps have the effect of giving the mine owner and public a better chance to study that form of investment.
 Speaking of the arrest of Hinds and the plan he operated on the Journal Miner of Prescott says:
 "Hinds Is charged with embedding $I31.60 of the funds belonging to the Prescott Realty company the com plainant being D. F. Mitchell secretary of the company. It is alleged that there is 8 total shortage on the part of Hinds amounting to g. 400, and other charges will probably be preferred against him. The Realty company acted as agents for one E. D. Sniffin os New York, who agreed to furnish money for the development of mining claims by guaranteed bond issue. Snitf1n agreeing to undertake the sale or the bonds. The bonds were to rua for fifty years, and the cost of under writing the bonds amounted to $179 10 per $1,OO0. Brokerage commissions and other expenses ran the expense up tu about s240 on the thousand, so that if the scheme proved successful and the bonds were sold the company bonding them would receive a little less than s16,OOO on an issue of s100,OOO. Several bOOh dIlldBG the OIrer with the assurance from Mir Hinds that no difficulty wouID be experienced In the sale of the bonds, and the fees collected by the Realty company amounted to about $12,OOO. Of course only small percentage of this amour, belonged to the company, but belonged at the New York end, the Realty con- pany depending upon the sale of the bonds for the bulk of its commission,
 It is alleged that Mir Kinds failed to remit to the New York office the full amount of the fees due it, hence this charge.
 While many looked upon the proposi- ton with suspicion, the scheme is by no means new one for financing prop- critics, as it has been practically the custom in vogue in England for some time, and is substantially the manner In which big industrial corporation finance their properties. The only trou- ble in this instance, it is said, is that the guaranteeing trust company did noi have the financial standing to com. mend the bonds to purchasers. Other developments are likely to follow, as there are several companies whicf have been mulcted for fees.