The Goldfield news. [volume] (Goldfield, Nev.) 1904-1911, 1909-02-20

II. w. r., waco, leA"
how to buy stock through a oroAel.
In your case, being at a distance !o'
will give, say, a Goldfeld broker u"
order TO buy a certain stock. You can
i've him an order TO ''buy at the
market - or name a certain limit you
are willing to pay. The broker VIII
b,v the stock and send it through a
ll.nk. with draft attached. The stock
viii be delivered to you when the drait
is paid and the money returned 10 inc
broler the amount of the draft being
the purchase price, plus commission and
exchange. When you give your order,
have the broker, in rendering bill, state
ON what exchange and on what call h9
bought the stock, so that II there Is
anv reason to check up the transaction
Won will be able to do so, as the ex-
clanoe shows every transaction be-
tween brokers on the floor. You can
buy on margins, that is, you can make
a deposit on stock. Brokers demand
from 33 1-3 per cent to 90 per cent mar
gin, according to the stock. The broker
Finishes the balance of the money at
interest, and keeps the stock In MS
possession as security. If the stock
goes down so that your margin Is III
danger of being wiped out, the broker
will call for additional margin. On the
contrary, should the stock go up above
the purchase price and be sold, the
margin plus the profit, less commission,
interest and exchange would be re-
turned. Margin trading is pretty dan
gcrous business, especially with Il
broker who speculates himself, or vino
is not known to be substantial and hon
est. There is too big a temptation to
.sbucketo trades. That is, the broker
does not make the actual transaction,
but simply notes on his books the
price at which the stock is ordered,
and places the margin to his own ac-
count in bank. He himself takes your
bet. and takes the bear side of the
market against your bull side. If the
bear side wins-that is, If the stock
goes down and wipes out your margin
it is his; and you lose. If the stock
gees up he may and he may not be able
to deliver when you order the stock
III H., hoo ont N lnnn limo ~
shorts, he may go "broke,' or he may
"decamp,' in which case you would
lose your margin and profit beside.
There have been may cases of thas
kind in the past few years on the larger
exchanges of the country. If the
broker be honest and square, ami
actually buys your stock and is pre-
pared to deliver the stock when you
order it sold, then there is no risk So
far as he is concerned and he will
doubtless ''make good The advanl-
age in marginal buying is that one can
buy twice to three and four times
more stock than if he were buying out
right. OF course, if one buys outright,
he owns and has the stock and even
should the price 60 down to the bot
ten, he still has a chance to recovef
his board loss, by a rally in price. But
if he is on margins and the stock goes
down he is wiped out entirely or has 10
put up additional money. For this req
son, especially N a sluggish and uncer-
tain market, outright buying is far the
best.
w. M. s., Scwickiy, Pave know
the people behind the Pioneer Oil com
pany and know them to be among the
most reputable operators in this section.
They are all men of standing in the
mining and business community. Their
property is regarded as the best oil
prospect in Nevada. CD The Biizzard
company lost its ground through failure
tic do the annual assessment work, and
the ground is now owned by James Z.
Keelyn and others.
G. w. B., New Queensborough, Eng
lard.-The Gold Mountain Tonopan
Mining company was hoated about five
years ago by j. II. Meecham of the
Mcechan Investment company. l.. u.
Patrick, who was named as consulting
engineer at that time, now says he
knows nothing of the company, but be-
Eeves that it has gone out of existence.
Meecham has not been in this section
for some years and his exact where
abouts are unknown to us, but when
last heard Of he was in New York City.
G. L. B., Albuquerque, N. M.-We
would suppose that the stock of the
parent company at the present price
would be a good buy. The lease stock
is selling for several times the price ot
the stock of the owning company, which;
appears to be a paradox. The affairs
of the parent company, however, are
somewhat mixed, and the lease runs 50
long that it is tantamount to owning
the ground.
T. M. L. B c., New York.-The Ne
vada A~malgamated NJ. M. & L.. Co., was
a promotion of j.. Z. B~arsness, since de
ceased. The company had some PROV
ertv ~ (,ula Snrinus aaefarn part of +ho