Arizona republican., 1910-12-26
swindIers and Their Victims.

The arrest of Grant C. Gillett and w. D. Batchelder of Los Angeles by postoffice inspectors for fraudulent use of the mails in booming the Cleveland oil Company" and the statements made by the federal of ficers in relation to the charges against the arrested men, ought to furnish a lesson for the people who make themselves the victims of stock selling sharpers. Just a little reas- oning by the buyers of eXtrava- gantly praised mining stocks would save them from biting at the bait. For example. it was claimed by the boomers of the Cleveland" oil stock that the company already had wells in operation which were producing 300 barrels a day. Such a produc- tion would enable the owners to go ahead with such equipment as they might need for handling their oil. without selling their stock.
 Similarly. when mine promoters claim that they have mines already developed and ready to pay dividends, and only need money for reduction works" any person of ordinary sense ought to know that something is wrong. The owner of a mine of proved value can get all the ma chinery he needs, on credit, if he is a man of good reputation. The ma chinery companies are more than glad to look at his property and equip it for him. if he has the ore ready to be taken out. But some of the worst frauds in the mining business have been far more trans parent than such a case as this. Promoters have claimed that their mines were already paying dividends. and with these statements have of fered their stock at bargain figures" and have found buyers in plenty. Millions of dollars have been filched from the buying public through pro- cesses so transparently fraudulent that their success is a reflection on the average of intelligence
 Indeed. the common experience of promoters of legitimate mining prop ositions is that they cannot interest buyers by telling the truth. When they say they have an inviting pros
 sE,~ ha dnN~alnng into the mine they have reason to hope it will do, it will prove a splen- did investment on the basis of the offered stock, but that it will take time to tell the story, and all that, the public gives them the cold shoul- der and eagerly buys of the swind- lers who promise dividends from the start" There are hundreds of owners of excellent prospects in Ari- zona and elsewhere in the mining country, who have found by sad experience that they cannot compete with the liars in the promoting busi- ness. Sticking to the truth in their efforts to raise money for develop ment, they are compelled to see their properties remain undeveloped. And yet there is no more legitimate busi- ness in the world than mining. No other business-in Arizona, at least is more inviting. Under intelligent direction and honest management. in in territory are likely to return bigger and more certain profits than any other speculation that can be named. Fortunes upon fortunes are lying underground. merely awaiting the pick and shovel of intelligently han dled capital But the public of the east exercises so little intelligence, and So consistently demands such lit- erature as the swindlers furnish, that honest promoters of legitimate enter prises are under an immovable han dicap. The buyers of mining stocks don't wish to be told that they must investigate, must expect that some
 
 the most competent and most hon. est management. and that in any event they must be patient in waiting for returns. albeit when returns do come they are most satisfactory What the miscellaneous buyers of stocks wish to be told is, that they are buying a sure fortune for few dollars-that they cannot lose, and that the sellers of the stocks are actuated mainly by a spirit of benev- olence and Christian desire to help their fellow men.
 It really does seem that the people like to be humbugged-humbueged by mining swindlers. humbugged by political reformers. and humbugged by everybody who dwells on his hon.