The Salt Lake tribune. [volume] (Salt Lake City, Utah) 1890-current, 1906-09-13
GOVERNOR CUTLER
TAKES BACK TRACK
Utah's Chief Executive Explains
Letter to News Rapping
Mining Industry.
DID NOT INCLUDE
ALL AS GRAFTERS
Explanation Much Preferable
for World to Read Than
Letter Itself.

The most direct and drastic thrust
ever made at the mining industry OF the
State OF Utah, the greatest industry Of
the State, and an industry whose sue
cesses have awakened In the Eastern
financial circles feeling OF trust and
confidence in Utah and Utah properties
enjoyed by other State in the Union,
was made Wednesday by Gov. John c.
Cutler. This wicked blow took the form
OF communication to the News, which
paper is ever ready to rap the mineral
industry OF the State, played the COM
munication up as attractively as II Ia
known In newspaperdom to do.
In this communication Gov. Cutler
makes sweeping charge against all
companies which advertise In the daily
papers In order to sell their stock for
development purposes, Last year Utah
mines produced over $4,000 900 worth Of
gold, silver, lead, copper, mercury and
zinc. and Utah properties paid over Si.-
600 900 dividends. and not one OF tho
fortunate companies could call Itself eX
empt in the beginning of it's activities
from what is known and called pros
pect Not one but had to call upon the
investing public to purchase stock for
development, either through the medium
OF the newspapers or by personal solici-
tation. The same thing Ia going on today
everywhere In the West, and careful
reading OF the Governors letter TO the
News will disclose no other result than
TO cast reflections on the honesty OF the
business men of "unquestioned reputa-
ton who take such means TO invite the
general public to assist in placing such
properties upon q safe footing. The
Governors letter read as follows:
Letter to the News.
To the Deseret News-In these days when
there is so much talk about graft and
robbery there is one get-rioh- quick
business which receives but occasional notice.
thSIa uIinp that il is bainr worked most
effectively the unsuspectng public. |
think the unfairness OF this question should
be given more publicity
refer TO the obtaining by purchase or
otherwise OF mining property for very small
consideration, incorporating mining COM
pany, say for million dollars or more; this
done. the party or parties interested will pool
three-quartcrs OF the stock until the other
quarter has been sold for the purpose of de-
veloping the mine, The money thus obtained
is expended TO develop the property and
paid IN exorbitant salaries 10 the mine on
cials.
II the property develops TO paying propo-
sition. those who have pooled their stock sell
for from ten TO 100 times the original cost,
II it proves q losing investment, sp is too
often the case, those who were duped to
purchase the treasury stock and have taken
most il not all the chances, lose their entiro
investment. l reliably informed of q
proposition mado 10 business man in Salt
LIKE City but short time ago, in which
he wns offered holf interest in certain
property fog $4,000, condition that he
sent TO have the property incorporated for
81 900, OOo S7OO. 900 OF the stock to be pooled
and tho balance Of the stock placed on the
market.
Few business men would think Of invest
ing their money in such speculation, yot
reputable citizens permit the use of their
names president and directors, and reputa"
BILE stock brokers place this 'watered' stock
on the market; with the result that the un-
suspecting public invests in the stock because
OF the high standing of the who are sup
posed to havo invested their money. l refer
you TO milion-dollar companies being
advertised in tho daily papers, and ask IL
any level-hended business would invest
in such companies, were it not for the fact
that men Of unquestioned reputation permit
the use Of their namog as officers OF those
companies. I free to confess that in my
opinion the public is going speculatively in
sane in tho mining and other speculative
propositions, and believe II is time that the
public should have their attention called to
this state of affairs, and that the working
men and clerks should be slow to invest their
hard earned wages without some assurance Of
returns. I believe mining to be just
legitimate any other business. but such
gratis rs the ones hero mentioned have
done much to injure the mining business.
JOHN G. CUTLER.
Governor Is Interviewed.
Gov, Cutler was seen Wednesday night
at his home by a Tribune reporter and
asked why. as the chief executive OF the
State. he took such drastic means to
strike at Utah's most prominent indus
try. Gov, Cutters explanation of this
letter not only serves to practically take
back the sting of this epistle, but to ex-
pose a few inconsistencies of his POSI-
ton. He stated that he did not intend
by any means to brand every man who
advertises mining stock for sale as
CRATER, nor his proposition as get
rich quick concern" His intention, he
states, was to rap such men or compa-
nies who buy properties for q song and
capitalize companies for million dol
lars. with intent TO defraud." and then
sell the stock to women and men who
cannot afford TO take the risk
Once Was in the Business.
Mining. stated the Governor was a
speculation legitimate lines so long
as the originators OF companies hon
estly sold stock only to those who could
afford the loss in case loss came. It
was a Wall street proposition, he states,
and should be kept in It's proper chan
nels. He failed TO explain why all adyer-
tisers in newspapers or sellers of stocks
on prospects were included within his
category as spread forth In the News It
might be OF interest in this connection
TO explain that the Governor admitted
that at time ne WAS a director In
a mining company, which was only a
prospect. upheld in its operations by the
disposal of sufficient stock 10 permit the
company to delve deeper into the ground
for the resources which all hoped were
within their boundary lines. But"
duucu lHc SoNcIuOE. pTdCllcdlly gave
my stock away, and resigned rs direc-
tor when this company began selling
stock to men and women who could not
afford the loss"
When asked if he had lost money in
mining enterprises the Governor stated
that he had. He was asked IL he was
the man to whom some one, as he men
tions In his letter TO the News had
offered to sell half OF a property for
$1,000 which was to be Incorporated for
s1.0O0.000, and he refused to solve the
enigma. Several questions were pro-
pounded to the Governor In regard to
the sugar stock business In which he is
interested. When asked how much money
the stockholders secured per share for
the stock OF the Utah Sugar company,
he replied that he did not know.
WAS not this stock watered and for
how much 2r aslcnd the rnnarlar