Los Angeles herald., 1907-12-22

AZ every cloud has silver lining. SO
win the present decline in securities re-
dound eventually to the benefit OF the in.
vesting public. So also will It place the
mining industry in position not previ-
ousiy attained by it, as the mass Of the
investors has never before been properly
informed upon the subject. The publicity
recently given to the manner In which
various illegtimate mining companies
have been financed. as well as the ex-
pose OF the manipulation OF the dinerent
ipdustriais ir so-called legitimate lines,
viii give those who take the trouble to
investigate an insight into the MANAGE
nent Of the many classes of concerns
that are appealing to them to invest. and
they will consequently be In far better
position to protect themselves than ever
before :.
Now that the upheaval has occurred. 1t
will be well that 1t continue at least un-
Ill business of all classes Is upon more
secure footing and many OF the ques-
tionable flotations wiped away condi-
tions thus settling themselves down to
the only rule. that of supply and de-
mand. At such time mining will forge
ahead. The various mining centers Will
have all the business they can attend
TO- The tributary camps will be actively
developing the prospects and mines Tor
which the investing public Is supplying
The funds and such funds will then
cease to find their way into the pockets
OF irresponsible exploiting companies and
individuals. as has unfortunately so fire.
ouently been the case In the past, where
there has evidently been no idea or In
tertion OF putting dollar into the
ground.
Proper Management Necessary
arrive at this conclusion, viewing the
aubiect from the standpoint Of the cham
her Of mines and having In mind the
.rincinIa unon which said institution Is
founded-that ir the mining industry
there would be very few, II any, fall
ures II II were as honorably and as con-
ssrvatively managed as other important
lines of business. The demand on the
.,art of the investor that the mining
business be carried on upon strictly busi-
ness principles, will have the effect of
causing a change for the better In the
ranks of the prospector and OF the pro-
moter.
THE development of the mining country
tributary to Los Angeles is very en-
courag.ng as in all districts the men In
the field are still pegging away. having
confidence in their several properties and
Knowing that at such time as they show
warrant investigation by competent en-
eineers or other authority, they will have
a ready market. The value OF their prop
critics can be as readily figured as II 1t
were money in the bank. Not being per-
ishable the cost of mining. shipping, ETC.,
can be figured very close, thereby show
ing the profit.
Demand for New Law
II only a prospect, the manner OF In
yestigation by the chamber of mines will
place the investor in position to take
very little chance. inasmuch as the ma
jority of prospects, having good indica-
titons make. with development, good
mines. The great trouble in the past has
been that the money has not frequently
enough been put into the ground. find
ing its way instead into the pockets of
the different handlers of the stock. In
this connection, am of the opinion that
law should be passed compelling com
panies selling stock to make an affidavit
ar intervals to the authorities that al
least 80 per cent OF the funds derived
from the sale Of treasury stock has been
used for development purposes. and I