The Goldfield news. [volume] (Goldfield, Nev.) 1904-1911, 1906-01-12
HOW EASTERN CAPITAL MAY BE
ATTRACTED TO WESTERN MINES
address of Frank E. Wire at Mining congress)

The subject unde consideration
seems to be one Of vital importance to
all of us. Any practical knowledge
and studied observation that will bring
eastern capital and the western mining
enterprises together in their develop
ment stage, help them to better I'M
derstand each other and appreciate
zach other more, is well worth our
while.
The mining veteran more than any
other factor has given to the world the
great west, with all of its wonderful
possibilities and opportunities.
Truly you were the advance agents
Of civilization. You did much to cher
ish and foster the spirit Of western
propress and development, imbuing in
Young men the desire to 60 west, and
when they could not 60, they sent their
money to you. Western opportunity
offers to eastern capital the means by
which both may grow stronger and
more useful to all mankind.
By eastern capital / mean all the
.eurces from which eastern money IS
raised to aid in developing western en-
terprises, such as mines, railroads, irri-
cation. propositions and the like.
It seems that heretofore there has
been q great gulf Of misunderstanding
and lack of confidence between the
western opportunities for investment
and eastern money. Ny desire, there
fore, is that my experience and OBJ
servation may help to pave the way for
a better understanding between the
prospector, miner and the promoter IN
the one hand, and the investor and gen.
eral public ON the other.
For convenience sake, ! will divide
the people who contribute to these
western propositions into three general
classes: First, the capitalist; second,
the well-to-do investor, and third, the
small investor.
The ordinary capitalist is the hard
est man to interest in new mining
propositions. He is liable to be critical
regarding conditions generally.
The capitalist has many o%pportuni-
ties. New enterprises seek money,
more than money seeks enterprises. Of
course it is impossible for a moneyed
man to have the time to consider the
merits Of anywhere near all of the new
propositions of the west. AS a rule
rich men prefer to concentrate their in
vestments. Ordinarily they associate
themselves with their kind. To the
capitalist is left the necessity of pro-
noting and financing the larger
schemes, such as railroads, big mines,
shelters, ship-building, irrigation, etc.
The well.to-do investor is usually a
progressive man, a politician or sal
aried man who has more funds than he
needs in his business or vocation and
consequently has a small surplus for
miscellaneous investment. Il
Generally he is alert opportunities
and is ready to consider new western
propositions, when handled by, a relil-
bic party. AS a rule there is very little
of the plunger in him, and not much of
the speculator. He is not as critical ~
his richer brother, is more easily ap-
preached and likely to be more reason
able.
So far as l have data, / believe the
well-to-do investor furnishes the most
money for the great bulk of ordinary
mining propositions that are not in =
close or semi-close corporation. This
class of investors furnish the brains
and sinew of our best mining PROPOSE
tions in their development stage.
The small investor, while in a class
of his own, is worthy of our attention.
He is a person whose opportunities
along the investment line are limited.
In consideration of his financial limi-
tations he must invest in a small way.
On account of the smallness of his in
vestments, this type of investor is fire.
quently not as careful as he should be.
he is quite inclined 10 follow SONS
more prominent mans lead and invest
because "Mr. So-and-So did"
The real small investor does not, as a
common thing, hold large enough inter
est to make him the support to a prop
osition that a larger stakeholder would
be. Thus it frequently happens that
a company composed of the smallest
stockholders has some trouble in hav-
ing as large a representation at the
stockholders meetings as they should
have. The characteristic small stock
holder" is likely to buy without mature
elaboration, and he often is the frst
one to grow impatient. The more con-
sentative element of this class OF small
investors is a source of support and
strength to any western mining corpor-