The Goldfield news. [volume] (Goldfield, Nev.) 1904-1911, 1909-02-13
MUTUAL PROTECTION FOR INVESTORS

- HERE are a great many people in moderate circumstances who would like
to invest to some extent in mining enterprises and who are at a loss as
! to the method Of investment. They are afraid of stocks. az in too many
instances the stakeholder is lot only a silent, but ignorant partner; he hardly
to buy another man developed or proven property for, if the cost be not
Of h n hand, h is afraid of picking up a 'hxed', property Oh the
Theres a little group of men overin m of he interior California towns
who seemt to have solved this problem to a degree. When the Nevada excitement
had reached its height these gentlemen became interested, all having son money
for investment. Some Of them had been through other gold excitements. how
ever, had learned caution. Instead of buying stocks OF mines brndly fifteen
Of them formed an association. lot an incorporated stock company, took in with
them a capable young mining engineer familiar With Nevada formation and nut
lifted a field party which, they placed in tn field. They established a reserve
fund OF something like $1,000 each which vas not to be touched until their en-.
gineer. who ws also a assayer with a field assay outfit as part OF hi equipment,
informed them that he had a good property in sight AMI which he could recon-
mend that they purchase. The expenses Of the prospecting party were arranged
$40 per month into the expense fund for a period Of ont year; the arrangement
to be again made It h end of that time il all members of the association were
s s n.+v .,rs,stsd ~ ~ engineer md an avsstan, both ,amrssr With, ~
Nevada country and with prospecting and a nan to COO and caref for team and
camp. Aside from = few dollars for personal expenditures tn engineer an his
gladly agreed to waive all further payment "a to b given a equal
share in n property picked up with the men who were financing thu expedition
The field party commenced work in the spring, after the bad weather was
ended, but while there was still considerable water to be found in draws and
and began its operations in northwestern Nevada, prospecting carefully
whore indications were promising. but more particularly looking into the prop
critics 4 isolated miners and prcspectOrs who were working claims single handed.
Two Or three of these properties were picked up after due and exhaustive u.
mr tn prospecting work vas discontinued M work OF development ommenced
upon ne Of these properties This work has been continued, the $500 per- month
of me steadily employed and proviioned Their property is o pretty well
proved u ,. As been examined by two or three reputable engineers at various
hat tnev n,vs !, b,.a, fr = rood mine these artner. viii. rnsndt their reserve
fund in development then forms corporation including the original fifteen men,
br Of IL association and their engineer and his assistant, and probably put a
certain share Of each mans stock holdings upon the market in order To- thor
oughly equip h property. Many men in tina town, who had expended from
$1,000 Il $4,000 each without previous investigation in irresponsible or poorly
handled mines and who then said they would 'never again dabble in the mining
game hav been besegng the members IF the association to b 'lt.i into
their concern and it has required n little stamina Of the part OF the members
10 refrain from charging 1t st the request Of personal friends.
It sssms to us that this is n solution Of he investment proposition. There
ire different Ways in which 1t can be worked ont, nut tn basic principal Of all
the invetorsb being personally known to nj another, an knowing their engineer,
making success Tor n spell success for ALL, an assuring that n n AN be
heavily involved-f9 It the end Of tn first yea, with an expenditure Of not
more han $500 each the association al be dissolved-s ne which works fr
the mmte economical expenditures ant the most practical results.
Some stock investors " Providence, Rhode Island, are trying to work mi
b tnvestment problem in another way and yet which has he idea II personal
acquaintance among the investors and banding together for mutual protection
and h interchange II personal ideas n information for thu beneft Of the IN
tire group. This "cub" = it is called embraces some fifty members Wit have
come together. not for the purpose Of finding their own properties. but Tor specn
lauon in stocks 30 ar he organization is In In formative stags an rules
and bylaws have not been made public. Under he name Of the Providence In
vsstoss'C Club of III National Order 4 Mining Invenors,e each member gathers
what information he al regarding various mining propertea promoters, con
pamA e, and At the club meetings all uist individual information is M over
for thu bensnt II the whole organization It Is very evident hat At these meet
tns III truth concerning N investment proposition Of interest to tn members
vim come out-at least the OPEN discussion win come 30 near the truth that no
on Of ts mmbsrs VIII BE- very severely 'stung' OF any grossly fraudulent