The Guthrie daily leader. [volume] (Guthrie, Okla.) 1893-1996, 1905-08-23
MODERN MINING SwIND.
LERS EAvE EASIER
METHODS
STOCK CERTIFICATES BES%%
hake a Killing With Shares
at One Cent and Up.

and unloanng II upon some tender
foot is regarded as very bad form 10
the West now The modern method
is 70 incorporate Il and scatter the
beautifully engraved certificates as
Widely as possible The new way is
much easier more profitable and less
dangerous
The insidiousness Of the mining
stock gamble lies IN the cheapness
with which one can get in. In hundreds
OF cities in the west are located one
or more mining companies with in
aated capital--anything less than a
miuion is loukea upon with derision
and shares are offered an the way
from cent u 20 cents apiece The
most aliuring literature is scattered
broadcast and many agents are EN-.
ployed on commission to sell the stock.
For sc5 or $50 enough engraved stock
certificates TO paper a reception room
may be secured. and there are few
men who are not willing 70 six that
sum upon the turn Of fortunes card
If they win they believe that they win
make u killing. II they lose. we'll, no
matter-it wss a good bet, anyway
Immediately after the discovery Of a
new gold camp the mining stock
swindlers get The busiest For a few
hundred dollars the shark can buy ar
locate "a the vicinity Of he new camp
shreds and patches Of ground that
have no present OF prospective value
as mines A mining corporation with
an attractive name and million or
two OF capital zatiou, is formed A few
friends are called in and set of Off
GERS and directors IS selected. They
at ono negot ate Deal whereby all or
nearly ali OF the stock is turned over
TO the owners OF the claim In pay
ment for st. Then whatever stock of
the company has been issaed is owned
by the promoters. while the company
mas the claims. If the latter cost ST.
600 and the stock issued, 10000
shares is sold at an average Of 5 cents
the clean uI, is close to 100000
All of this. however, is not velvet,
There must be expensively fitted up
officers. a corps OF clerks and steno-
graphers. advertising expenses and
various little details to be covered. An
of which cost money The whole OBJ
iect OF the company IS 10 get rid Of the
stock quicl,ly A year is the usual
limit
I There are many legitimate mining
brokers but there are harpies in alb
undance also. It is difficult. save
through experience or previous care
fu inquiries. to distinguish the real
mining broker from the sham The
latter Is a close imitator He. TOO. con
trols some brokerage or financial com
pany. and he. too, advertises his sole
business as the handling OF sound
stocks Of proved value, Oftentimes a
group OF these sharks VIII organize a
half dozen companies One is thus
able TO guarantee 20 Inquiries the
solvency or the legitimacy OF another
and by freely commencing one an
Others propositions help TO swell th,
number Of suckers.
Many Of these mines are located 81
Territory that has been prospected ant
found 70 be practically worthless Any
one can ride out put up a notice say
ing thai he has discovered the Lit
tie Monarch" that he claims $50 bl
500 feet 10 a northerly direction thai
ne claims sixty days in which to a,
the assessment work and thirty s
which 10 fle notice with the countl
clerk or recorder. In few hours h,
can stake of half a dozen claims. an,
within S xty days he can get holt
put in each one for S25
II he IS impecunious he may go TO
friend snd tell him that II he VIII pa
mp enough money Tor the floating o
the corporation he win make him presi
dent and give h m half Of the promo
tim stock Half Of the capitalization
win be taken az pay for the promo
uon and the rema nder is sold as IN,
treasury stock
Another plsn af operation display
remarkable financial ingenuity, =
shark viii go into a district and get al
option ON piece OF worthless grouu,
for few hundred dollars He or
ganizes a company, but as a suarante'
of solid ty announces that Il win bl
incorporated only when the sale O
tbs stock has been assured AS thl
head Of che proposed mining compan!
he makes a c1Htract with the broker
age oompany. in which he is also in
teresied, by WI ca the latter gets q
or 20 per cent commission for selling
the treasury stock Aft.r The worl
ceases on the unpatented ground. thl
claim reVerts 10 the government an,