Arizona republican. [volume] (Phoenix, Ariz.) 1890-1930, 1907-02-10


ton. the possibilities of the prospectOr
being fooled in the property, for such
undertakings are generally begun on a
prospect but little developed-no man
can see into the ground and the best Of
surface indications may lead one as
tray. The first money is spent for de-
velopment and demonstration Of val
ues. a fact the operators in the other
class have settled before they enter on
large undertakings. Perhaps the great
est element of chance lies in the fact
that only one of a great many promo
tiOns results in the placing of as much
stock as the management desires and
after the first sale with no profits in
evidence, subsequent promotions on the
same property are more difficult. II il
takes 100000 to equip a mine TO the
point of results and only hall that
amount can be raised. the chances are
more than even that those who did
invest will lose their money, however
honest the promotion and management
may be- This particular kind Of min
ing is therefore a gamble, and no man
should Duy stock under such cOndi-
tions. however hattering the prospec-
tus unless he is prepared to trust the
promoter implicitly, and lose his mon
ey if need be.
But brighter side to the picture is
that many such promotions have been
great successes and when successful
the profits are relatively so much
greater than the profits Of the corn
field. that in the eyes of most people,
he who can afford to lose few dollars
yet has not sufficient to operate in the
fist class mentioned. Is at least ac-
counted not foolish for making the in
vestment. He may win big odds, and
the entire west has been developed by
the taking of chances by men OF all
kinds with money in all quantities,
from a dollar TO a million Nothing
ventured, nothing gained. II Is the
business of the promoter to show the
appealing side. 1t is the business OF
the investor 20 use his brains and 10
acquaint himself with the above facts
or trust to luck
II is automatic that it takes money
to make a mine II is equally funda
mental that the man with ample cap
itaI can make it more economically.
for many reasons. As shown above.
the promoter is certain of failure un-
less MS IlOldllOn IlEtAS his NAPfS-G-
tiOns. Were he buying a cornfield he
could take smaller one If he did not
get as much money TO handle as he
expected. but he can not reduce the
magnitude of his mining operations
successfully. if he has figured rightly
in the beginning. The religion of the
promoter therefore is Get the Money
and he is justified in it, He must have
it all to make good TO his patrons. This
has led TO extravaSant literature,
sometimes to the extent of actual stud
led deception and nearly always to the
statement of real facts. that cleverly
arranged or by reason of the unfam-
iliarity Of the reader with them, are
inferentially misleading Academical-
ly. or in the abstract. this is unfOrgiv-
able. and yet, there are reasons for IL
that are not without merit. To illu-
strate. il is a favOrite expression OF
the promoter that his property Is in
that great mineral belt extending from
the Nevada mines to Cananea, or, as
the modest ones say. from the United
Verde to the Copper Queen. They speak
in truth. but the inference is that the
two big mines demonstrate the value
of their ore. while there is much area
i'm this belt that has no ore. And it is
the way of the advertiser. Every mer-
chant has sometimes said, such bar
gains were never offered before" and
no jury would be found to convict him
Of lying
Moreover it is sadly true that large
fiotatiOn was seldom. If ever. success
full on literature that was scientific
ally accurate and not extravagant.
There was never a business proposition
that did not have its drawbacks and
mighty few of them are ever set forth
in any rospectus-mining or anything
else. A biblically honest mining pros
pectus. setting forth the actual results
of all assays. if enough had been taken
to Indicate the value of the property in
stead of a dozen small assays averaged
with one remarkably rich one; setting
forth the actual poverty of the pro-
motors and owners; how they were pos
sibly considered honest. but as poor
prospectOrs could not get credit for a
sack of flour; making big allowances
for the unforeseen expenses that always
inject themselves at inOppOrtune times;
recalling that there may be mining
strikes TO interfere; that fuel oil may
become understandable; that the stock
holders may some of them become sus-
picious and make trouble: that some
of the managers may prove irrespOn-
sible or eXacting and tie the property
up in litigation; would never sell
a dollars worth of stock i'm the world.
In the absence, therefore, of actual
criminality or criminal negligence or
deception. it would appear that the
promoter must be borne with, even en-
couraged. and the only safeguard is
the intelligence of the investor Every
man knows his own business best. The
promoter has learned how TO Get the
Money" and il can not be gainsaid
that the promoter who really
gets the money, even by extra
VACANT claims. has done the first thing
needful in the making of O. big mine
for poor owners and for small stock
holders. He can make success of il
no other way and he may make fall
ure of il, either honestly or dishonesty.
II the latter. and it can be proved.
there is little hope for the stockholders.
but justice should be meted out as an
example to others.