The Pensacola journal. (Pensacola, Fla.) 1898-1985, 1907-09-29
PENSACOLA
LOSES MONEY
Mining Stock Schemes Take
Out Thousands of Dol
lars Annually.
Editor Pensacola Journal:


in investments in mining schemes
without a thorough knowledge of the
business, few if any of these invest
ments have or will result in profit to
the investor.
My object in this communication is
to warn the unwary against sending
good money away from home on I'M
advised schemes and Incidental to ex-
plain what is the only practical
method by which investors in mining
works can obtain returns which in
vestment is entitled to.
Parties coming to a town like Pen
sacola TO sell mining stock do so with
the idea in mind. of dealing with par
ties wholly inexperienced in such
matters, and by dazzling descriptions
of large fortunes made ny small in
vestments are able to sell stock. Often
their victims are in ordinary business
matters, the most shrewd and saga
cious men, but to whom the prospect
of large return is so alluringly pre-
scented, that they fall an easy prey TO
the professional promoter.
If half of the money which has eft
our city in the last two years had
been used in intelligent mining work,
honestly and skilfully handled, there
is little double but that gratifying re
suits would have been accomplished,
A plan in rough which / would sug-
gest, and one which has in general
principal been used so successfully by
such men as the Guggenheims, David
Moffat of Denver. Senator Clark, the
Copper King, Col Green and numer-
Gus others whose wealth has come
from mines, is about as follows.
Organize small company of say u
men, each of whom is to pay $500 into
the organization, and each month
thereafter for period of four years
are to pay $50 per month to same
This would make a total amount of
SAC, $4,000.
This money would be used to keep
continuously in the field an intelII-
gent, and capable man familiar with
the miping business, and furnished
with thorough analytical outfit cap
able Of making tests for any minerals
desired. Instead of the working of
properties located and owned, or de-
veloped by others, this organization
would make specially of selecting
prospects on which ccmparatively
small amount of work had been done,
bonding these and doing sufficient
work to demonstrate their value or
unworthiness. In this manner no
money would be invested in the prop
erty until it had developed to be of
value.
Such methods pursued for four
years would most certainly pay hand
somely on the investment. This fund
does not contemplate the DEVELOPMENT
of mines, but only the exploration and
development far enough to demon
stFate the worth of the properties. At
ter this had been done, such claims
as showed sufficiently we'll to warrant
the erection of machinery would be
handled by forming an organization
to operate, either by the stockholders
of the above mentioned. organization,
or the properties sold.
The whole object of the first organ
iZation is to demonstrate values, but
not to- operate or develope This
would be done by separate organiza-
ton for the individual claims, as they
were found of value.
In the main this scheme is the sift-
ing of the chaff from the grain, as it
were. By careful selection the pros
poets through a large section of coun-
try would be sifted out, options OBJ
tanned on those which seemed worth
working on, and as fast as these de-
velOped, either valuable characters
tics, or proved unsatisfactory, they
would be either dropped, or progress
pushed upon the work
The first years work would be
largely the getting familiar with the
districts to be operated in, and with
the work going on in these districts.
Such methods as herein described
are the only ones that parties DESTROYS
of interesting themselves in mining
work can get in on the ground floor,
and work carried along these lines by
an intelligent field manager is more
certain of bringing in large returns
than any business investment with
like sums 1t is the only sensible way
of taking up the mining business, for
parties with good mines do not come
to Pensacola to sell stock. Such mines
are readily salable in towns like San
Francisco, Denver, Pueblo, Salt Lake
and other places where their value is
known or readily ascertainable. and
stock in good mines is not hawked
around in a country where people have
M idea of it's value
%One would come to Pensacola to sell
good timber for it has ready sale
among intelligent buyers of that com-
modify. and for the same reason peO-
pie who have good mines to sell, go
to mining towns to dispose of them.
1t is the party with an undevelped
prospect of uncertain value, who wish
es to dispose of stock at many times
its intrinsic worth. who comes to such
places as this to dispose of it
There is no business so profitable
with comparatively small outlay as
mining, nor any business where gre II
wealth has been so rapidly acquired.
1t requires however time and patience
and intelligent handling of properties.
There are and will be developed MANI
uJaceS in the next decade that are