The San Francisco call., 1908-04-03

xiyaI-of the famous properties, but in
reality they are cheap spectators
Their endeavor is not TO revive but to
throttle the mines. BY a system
peculiarly their own they thrive upon
assessments. Dividends would spell
their ruin.
What the Comstocks still hide in
fl1eir upfathomed depths no man
knows What is of more Importance
At the moment is that those who should
90 SO are not trying to find out. They
have capitalized the uncertainty and
are reaping the profits.
sharp distinction should be drawn
At the outset among the men of the
Comsrocks. They fall into two di-
visions-on the one hand, the hundreds
or honest men .(engfneers. mining men,
promoters and brokers), who are work
ing sincerely for the best interests of
the properties and the stock holders;
on the other hand, the few crafty indi-
viduals who have wormed themselves
into control of the finances of the COM
panies and are dealing out salaries and
perquisites to themselves with a freer
hand than was attempted in the most
brilliant days of the BONANZA period
FAITH OF THE VICTIMS
The trusting stock holders, that
strange band in whom hope can never
die, go on month after month and year
after year meeting the regular assess
ments In the foolish belief that the
president of the company is trying to
earn them q dividend, when, in truth,
he is doing nothing beyond schening
10 perpetuate his own salary.
There is ore on the Comstocks," the
nsnipuiators proclaim.
OF course there is ore-lots OF it, and
good ore. That is just the point: the
men in control are not giving develop
ment a fair opportunity. They need
the money for salaries-their own
salaries-and to maintain a coterie of.
friends as secretaries and In other posi-
tions.
To the outsider it is almost unbe-
lievable that a stock holder Will pay
assessments to the amount of 50 on a
share worth 81 cents, but that is one of
the many peculiar phenomena of the
Comstock game, which must be studied
70 be understood
co down in Bush street, wn-- the
mining exchange stands and where the
brokers have their Offices, and get them
TO tell you their honest opinion of the
administration of the Comstocks. The
reputable brokers (and that means the
great majority of them) will answer
you tersely, It's rotten" They may
have great faith in the future Of the
Comstocks: they may believe that there
IS as much rich ore IN the unopened
caves of earth as all the shafts com
bineo have yet produced. but on the
plain issue Of the administration Of the
Comstoclks they viii tell you that 1t is
a scandal that cries out for correction.
ALL EXPRESS SAME VIEW
Go further. Go to the Comstockers
themselves. Go TO the men in the
thickest Of the game and let them talk
10 you about the tComstocks. They will
tell you of the great work that is being
done, of the Ward shaft, the pumping
association. the Sutro tunnel and the
ore in the Ophir. The investigator
must agree with them that certain
effort is being made. but whoever takes
I'D with them the expenses OF admins !
tration, the wastefulness, the extrav-
sgance, viii ultimately find even the |
operators of the game admitting that
81 is all wrong
There is small likelihood that the |
Comstocks viii ever be put on a busi-
ness basis until the stock holders take /
matters into their own hands oust the |
tricksters and operate the mines them /
selves. Many of the stock holders are |
women Many are men who have be- 1
come so accustomed to assessments 1
that they pay without protest. 1t hap
pens frequently that small savings are
wiped out through continual assess
merits, and then some stock holder pro-
tests He gets explanations that do |
not explain Generally he pockets his 1
loss and shuts his mouth.
The Comstocks defy precedent. A
name at the head OF q company in the
ordinary course OF events would be
taken as an indication that the owner
Of the name had a large financial in
terest In the concern That is not the
case with the Comstocks. The control
is secured by proxies. The men who
hold 1t are too wise to buy the stocks.
They let the public buy, obtain the
proxies and then elect themselves to
the salary paying posts.
OF PRICES
A fraternsl feeling has been evolved
among the Comstock caretakers. 1t is
q common pie and the slices are all cut
for those on the inside, while the real
stock holeers look on. hungrily. The
president Of this company is the vice
president of the other. One man is a
airector OF nearly every company in
the group. He is president of seven
and draws a salary from each In fact.
he Is known as the king OF the Com
stocks, although his holdings therein
are Insignificant
Not only does he receive the salaries
but as president and director general
Of the companies he can manipulate the
prices TO please himself and the other
members of the clique Shares are
'orced up to induce their holders to
meet an assessment and then fall grad
1a4ly 10 their old level. The supplies
are paid for at top figures, the market
prices Notwithstanding.
Up in the mines two lonely miners
nay be at work year in and year out
drawing each his 81 a day, but down
It the home Office in San Francisco
1 president draws a salary of 500 a