The San Francisco call., 1905-06-10
CRUSADE AGAINST FAKERS
TN MINES BEGINS.
State Mineralogist to Inspect Sus-
picious Properties.
TO EXPLOIT PANAMINT RANGE

Miners in Placer County were surprised
a few days ago to learn that certain
mining properties in their region were
under investigation by State MineraIogist
Aubury. The purpose of the inquiry was
to begin crusade against the takers
in the mining business.
Mineralosist Aubury went to Placer
County TO ascertain whether representa-
tions made in print by certain mining
companies were warranted by the facts.
In one instance at least, he is satisfied
that he found enough that was suspicious
to make 1t probable that some legal pro-
ceedings may result. The company in
question, advertising as a large producer
of gold, has been paying dividends for
some time without producing any gold
whatever There is no escape from the
conclusion that the dividends came out
of payments by stockholders for stock.
Mr. Aubury said last evening that he is
about to make a number of vislrs to min
ing districts to see how well certain COM
panies are living up to their promises
made in literature Issue. by them.
Suspicion is attached naturally to cor
porations that carefully guard against
having any of their pamphlets or other
printed matter circulated in California,
although their mines are situated in this
State. The Legislature at its last session
adopted law having primarily for its
purpose the shutting out of fraudulent
representations about CanIornia mines.
There are numerous good mining proper
ties in this State scattered over a large
number of counties. These will be bene-
fitted and the mining industry Of the State
will be immeasurably helped by having
it known that all the mining takers are
to be weeded out as fast as possible.
Such programme has been initiated
by the first of a series of visits in the
past week that was made to Placer
County There will be no lack of COM
panies to investigate at the start, much
literature having been received from the
East and from Europe, where 1t has
been circulated.
MUCH TO BE INVESTIGATED.
In substantiation of his statement Au-
bury held UP good sized bunch of pros
pectuses Of companies that are more or
less under suspicion.
"These," he said, have been sent to
this bureau by anxious inquirers out of
the State. I am personally looking into
matters. / shall visit mines and make
inquiries. The trustees of the Mining Bu-
reau are in sympathy with the work in
hand The conditions are better now than
ever before to bring offenders in the min
ing line to an accounting. In addition to
the law relating to the use of the mails
to defraud, the new State law is avail
able. That no one may misunderstood
the full import of the new State law, /
have directed that notices embodying its
provisions shall be sent to all mining
counties in California. All the newspa-
pers of the interior win get copies. No
tees have been sent to all principal post
offices to be posted in conspicuous places
SO that no one will be able to plead ig-
norance. Companies advertising the sale
of their stocks have been communicated
with to some extent. AS far as possible
the work of informing every one who is
concerned about the new law will be thor
ougf. When facts are discovered that
call for action the postal authorities will
be informed promptly
STATES NEW LAW.
The California law provides that any
officer of a corporation formed or exist
ing under the laws of this State who
shall make any untrue or willfully exag-
gerated report, prospectus, account, state
men., etc., with the intention of defraud-
ing any particular person or persons or
the public generally, shall be deemed
guilty of felony and shall. upon con-
viction thereof, be punished by imprfs-
onment in a State prison or county jail
not exceeding two years or by fine not
exceeding $4,000, or by both.
Coincident with the beginning of a
campaign in this State by the State
Mineralogist to protect the legitimate
miners by getting after the takers, a
movement along different lines is pro-
ceeding in Michigan. and the method
there pursued is interesting in Califor-
mia now. The tax boards of Michigan
have adopted the policy of accepting
promoters at their word and assessing
for taxes the properties that are float
ed at valuations that the promoters
themselves place on them. This expert
ment is discussed by the Mining World
Of Chicago, which says, in part:
OF course, that method may be wrong-and
1t may be right-the most just tax to be laid
against q property, of course, is a tonnage
tax--at least as 1t. To levy taxation
according to the degree to which the actual
wealth of property IL exaggerated WILL of
course, make class of men more truthful
or, perhaps, less monumental as liars.
tax board accepts your statement as to your
personal tax--sometimes-and then usually
tries to convince you that you have forgotten
to enumerate a number of things. and the ad-
vocates Of the Michigan principle Justify their
conclusion that II the claims made by the pro-
moters are true. they cannot, In justice and
honesty, object and II not true. they cannot
AFFORD to pay the tax. and hence the public
will have to record one case less where the