Evening star. [volume] (Washington, D.C.) 1854-1972, 1906-05-12
The General Situation.

ne UG1lGfal SltuatlOlle
The facility with which Nevada
mining shares are being marketed,
despite the San Francisco disaster
and the bearIsh tone of Wall street,
is perhaps the most remarkable fea-
ture TO be noted in the mining share
sltua ton. The east and middle west
are apparently convinced" The
profits that have been made by early
investors in Tonopah and Goldfield
stocks, together with the sensational
showing being made in the mines at
Bullfrog and Manhattan. have ere
ated an enormous demand for stocks
in the new companies of merit that
are being promoted from Bullfrog
and Manhattan, and this demand
from east of the Missouri river is so
overwhelming that 1t completely over
comes the depressing effect o. the
calamity at San Francisco.
With only rare exceptions, all of
the Builfrog companies have made
good within a year, from the double
standpoint of mine development and
advance in the market price of stocks,
and Manhattan. although suffering
from plethora of promotions, is
making such a phenomenal showing
in it's mines that within ninety days
Its mining stocks of proved worth
may be expected to repeat the his
tory in early profit making Of the
Tonopahs, Goldfeics and Bullfrogs.
The cautious investing public is ap-
parently absolutely convinced that 1t
Is getting run for its money in
Nevadas The San Fl ancisco Stock and
Exchange Board. which for upwards
of forty years has made the market
quotations for all the Comstocks,
has heretofore been the scene of
most OF the trading in Nevada min
ing stocks, and eastern brokers have
been the habit of telegraphing
their orders 10 San Francisco for exc
cution. The Exchange was burned
down on April 1s, and the banks dis
continued business making it impos-
sible for the brokers 10 go on. Not
outstanding the sudden curtallment
of these facilities. the transactions
on the New York Mining Exchange;
the New York curb" and on the
Goldfeld, Los Angeles and Salt Lake
Stock Exchanges. which have here
tofore been In a large sense feeders
for the San Francisco Stock En-
change, have reflected no serious de-
clines in any of the stocks. and such
insignificant declines as have been
made are currently accepted as tenn
porary matters only.
The disaster has. however, brought
sharply 10 the attention of Neyada
mining companies the necessity for
eastern representation, and several
of the leading companies of Bullfrog,
Manhattan and Goldfield now an
nounce that they will open up trans
fer offices in New York, and other
wise extend TO eastern brokers in
their home city adj the facilities that
have heretofore been enjoyed practi-
cally exclusively by members of the
San Francisco Stock and Exchange
Board
Further proof OF the strength of
the market in Nevada mining shares
is found IN the fact that when the
San Francisco disaster occurred the
banks of all OF the Nevada mining
camps had many thousand dollars
on deposit in the San Francisco banks.
and all of this money has been tied
up indefnltely-few of the San Fran
cisco banks having resumed regular
business since the calamity. Nat
urally with so much banking capital
tied up IN this way Nevada banks
have been compelled to curtail their
time loans to some extent and In
many cases to call In demand loans.
amounting to tens of thousands of =
dollars. and the weaker holders of
stocks have in some cases been COM
PEELED TO throw them on the mar
ket 4 year or two ago, before Ne
vada mining stocks were accepted
at their true worth by the eastern
investing public, this would have
caused a panic; now it Is different.
Hundreds OF thousands of dollars are
in evidence here on the ground,
ready for investment in high-class
mining securities. and it IS an easy
matter for the holder of good stocks
to receive at least what they are in
trins!cally worth. however suddenly
offered and no matter in what size
blocks. Here on the ground investors
are IN a position TO learn by per-
sonal examination the exact situa-
ton OF the various properties, and
the outside public is not without
means. through trusted agents. to
learn the exact conditions.
II is a remarkable fact that, with
q very few exceptions. no attempt
has been made by promoters OF new
Bullfrog and Manhattan mining
companies TO put an inflated valua-
ton on their securities, and the pub
lie. IN seven cases out OF ten, has
been able 10 buy into new properties
of merit on a very near to cost basis.
The result of this has been that
quick profits have been made by In
vestorE and spectators. and IN most
cases II has been possible TO obtain q
profit on the original investment
within a period OF month.