The new South-news., 1907-10-05
Difficult to Wipe Out
Mining SWindles.

THE green goods game and the
siretapping game have become lit
tie bit worn out" said an old de-
teetiye to Sun reporter. Just now
it's the mining game that the authori-
ties are up against. and you can take
it from me that they are up against
II good and hard"
The detective has made reputa-
tlon for himself working for the
United States Government and did
more to stamp out the green goods
game than almost anyone else In the
business. What he said about the
mining game is echoed By almost ev-
cry one whose business it is TO pro-
lect the public from the man with
the misleading prospectus and a sup
ply of nicely autographed stock GER
tihcates.
To people who have put their mon
ey into the hands OF the man with
the pretty prospectus only to hear no
more from 1t or the mine 1t may
seem little strange that the authori-
ties. Federal and local, have not
stepped in and tried TO stop the
stream of cash that has flowed from
the pockets of the people of this
sountry into the hands of some OF
these INSCRIPTIONS mining promo
ters.
There are several reasons why
they haven't In the first place, ac-
sording to those who ought to know,
there is no investigation more expen-
sive than that of running down a
fake mining concern selling In one
corner of the continent stock in a
mine supposed to be in another cor
ner 5000 miles away. 1t takes thou
sands of dollars, months of time and
= man specially equipped for this
kind of work, a man with brains and
ingenuity possessed by few detectives
even among those employed by the
Government.
Another reason is that the laws OF
the States are at fault in not put
ting restrictions around the COM
panies they create. In a few cases
where such swindles have been ex-
posed and the swindlers convicted
the punishment has been light as
compared with the outlay necessary
to secure conviction.
Some years ago, before the discov-
cries in Nevada and elsewhere that
have given such an impetus to the
promotion of mining companies, le-
gitimate. the Government did get af-
ter one man who had launched a min
ing company up in the Northwest and
was selling stock to the public by
the barrel. The company was not
only advertising by pages in the
newspapers of the country, but II
was sending all sorts of literature
through the mails.
One of the best postofice inspect.
ors in the employ of the Govern.
ment was at that time stationed ir
Chicago. He was put on the case ant
told TO find out whether the Govern
ment had any right to issue a FRAUD
order and arrest the promoters. The
mine was in a region almost inac
cessible. 1t took this detective al
most one whole year before he haC
discovered enough evidence upor
which to make an arrest. In tha
time he had travelled hundreds O
miles on horseback and on foot, hat
engaged experts and looked up min
ers. He finally found that the com
pany had been organized and hat
sold stock before it had any mine OF
mining claim and that a few hundred
dollars of the proceeds of the sale o
stock had afterward gone to secur,
an option on a claim pronounced t
be worthless. That was all there wa
to the s1.000,0o0 mining compan,
whose stock had been distributed
broadcast. The Investigation cos
the government $500 and the chic
promoter got just two years in jail
Now and then the postofice in
spectors do step in and a mining com
pany goes up the spout. In min,
cases out of ten the investigation pre-
ceding this action by the postoiiic'
authorities has been many months
and by the time the proper evidenc,
Is secured much stock has been sold
Not until they hear of the action take,
by the inspectors in stopping tn.
mail and arrestins the promoters d,
! theeAeQple who nave bought ttt
rs, !. ~. .Ssst.s sartsd With tbae ssg| 4