Deseret evening news. [volume] (Great Salt Lake City [Utah]) 1867-1920, 1905-11-23
HOW TO INTEREST
IDLE CAPITAL.
Excerpt From Paper Read Before
Recent Meeting Of American
Mining Congress.
PROPOSITION MUST Be FAIR.
a Few "Don'ts'--There Is an Album.
dance of Money for All Proper
Purposes OF Development.

A paper read at the mining congress
at FL Paso by Frank T., Wire, on the
Attitude Of eastern capital towards
western mines IN the development stage
and how 10 attract It,. is worthy OF a
wide circulation and careful perusal
by all mining promoters. Mr.. Wire, in
his paper divides the investing class
INTO three great groups, First of these
IS the capitalist, second the Well.to do
investor, and third. the small investor
OF the first he says that they are diff
cult to approach, aud are not IN the ma
ture Of things liable to be Interested
in propositions other than that Of
large consolidation OF mines. The we'll
TODD investor, he says, is the class
which adds strength to a company and
the one TO be cultivated by the pro-
moter. The small Investor. he says
Is oltn source OF weakness to a
company which Is only IN the devel-
opment stage, but that sandwiched IN
with the well-to-do class he Is often a
source of strength as well. Continuing
Mr.. Wire goes on to say:
Lastly, how to interest capital.
The proposition seeking the aid Of
capital should be truly merItorous il
should be founded on principles and
conditions that will win. II pros
pect, 1t ought to be one where the
chances OF making pay mine are eX-
cellent. There ought to be a mini
mum OF outstanding stock, when go-
Ing to the public, seeking its aid and
cooperation. The proposition should
be capitalized on a conservative ba-
sic.
There should be no evidence OF
graft waste or 'eytravagance'
on the part OF those in charge OF any
corporations affairs. up to the time
they seek the investors money.
ITO ignore these common sense fun
damental essentials is to court disaster
and failure,
IN this day and age, II is useless to
go before the intelligent investing
public, and try TO befog and mystify
on these reorganization facts and
conditions, Any equvocation on the
part OF officers or managers, on these
vital points are Justly construed
against them"
Again he says: The old line promo
ter. who used to get from 100000 shares
10 half Of the capitalization OF a min
ing, exploration or other company. for
a few indefinite and simple services.
and few hundred dollars, has no place
or chance now. There IA very little
hope for a proposition that Is not
shaped up on fairly reasonable
basis"
Under the head Of "a Few Don'ts"
he continues:
Don't cater too much 10 peoples
imagination. II they want to pipe
dream. let them do It themselves. Any
attitude that caters to the galleries,
and apes the spectacular, never pays
Don't appear chesty and wonderfully
important Just be naturally reason-
able. and show patience az the little
knowledge some people show In mining
matters. Discuss mining and the OPP
portunlties of the west, generally, once
In A while. Don't urge people TO buy
stock. Don't promise dividends; II
you do nine time out Of ten your cake
is dough, right then. Reason with peo-
pie how it Is necessary to sell stock
cheap, to get the development funds
to explore and develop the property
Show them how this Is nearly always
done. Show how money Is high and
scarce in new western country.
Demonstrate how there are ten OPP
portunities out west where there is
money enough for one. IL you have
the right kind of officers and a strong
directorate-that is the best talking
capital you could have. You can use
this fairly and honorably, to convince
the investor of "A square deal"
lie states further that one great diff
hculty was the placing of stock too
high and says that money and time
is often wasted In trying TO sell high
priced stock on prospect.
RE offered the following in conclu-
sion Il fully believe that any truly
meritorious western enterprise In the
DEVELOPMENT stage can, II handled with
discretion and ability. secure all the
funds It needs for development pur-
poses from the almost idle capital OF
the east, where money is cheap and
plenty"