Gilpin observer., 1911-03-30
GOOD ADVICE TO
NINE INVESTORS

who would invest in mining. Mr..
Hammond Is dead against the un-
scrupulous promoter and Is constant
ly warning capital against this class
of sharks:
First: Don't invest your money In
mining property simply because OF
the fact that friend of yours (even
If he be a blood relation) became
rich through fortunate investment
made in mining stocks.
be deferred from investing in min
ing property because another less
fortunate friend became bankrupt
through some other mining invest
ment.
Third: Don't allow any insinuat-
ing. slick, dishonest-not to apply the
short and uglier word-promoter, or
so-called stock broker, to overcome
your natural modesty and convince
you that because you have been sue
cessful in your own line of business
that you yourself are competent to
determine the value of mine. Many
Inen of business ability in their own
! lines have made trips to self-decep-
tion to sec for themselves that which
existed only in their imagination.
Shoemaker. stick to your last!
Fourth: Don't be influenced in
your desire to purchase mining stock
nv tho rjcb oDac;mapo that tha rpir.,c
have Produced, even though you your
self have seen such specimens in
the mine. Specimen rock of this kind
is no criterion Of the average grade
Of the orc upon which the success
OF the mino depends. I remember the
story OF old John Gashweiler we'll
known mining capitalist of his day,
when he was asked his opinion on
the value of a property from which
very rich specimens of orc were
shown him: You might as we'll show
me the hair from the tail of horse"
said Gashweiler, land then ask me
how fast the horse can trot."
Fifth: Do not buy stock in mine
millions of dollars in the past, for
the mino is obviously so much poor
er for the millions already extracted.
Sixth: Do not buy stock in a mine
solely because 1t is in far off coun-
try, even though distance lends en-
chantment to the view.
Seventh: Don't buy stock in a mip-
ing company simply because of the
fact that it adjoins another mine of
great value. That may be interesting,
but it is not conclusive to the value
of the mine In question.
Eighth: Above all. don't buy shares
in a mine unless you have the. un-
qualifiedly favorable report made by
mining expert of integrity, ability
and experience and one who has
made a success in investment of
money for his clients. An engineer
may have the best obtainable tech
meal training. supplemented by con-
siderable practical experience, and
yet lack the certain qualifications in
his professional makeup that deter
mines success or failure.
Ninth: Don't buy stock in u mine
unless you are sure that the board
Of directors are honest and COM
petent. because good management is
just as essential to success in min
ing as it is in other enterprises. In
the early days OF mining in the
Transvaal the ignorance OF the board
os directors Of mining companies was
indeed lamsntable. though sometimes
comical. A we'll authenticated story is
told OF certain board Of directors
in London to whom the manager had
cabled telling them the necessity OF
having another mining shaft on the
property. as the old one was out OF
repair and dangerous. They cabled
in reply to the manager to endeavor
to find secondhand one.
Tenth: In short don't abandon all
your good common sense just because
the investment happens to be one
in mining. and not in some other class
OF Industrial securities.
Now all these admonitions you
have undoubtedly heard before. and
you might be inclined to criticise me
as the young Englishman did at the
play OF "Hamelt" because "he heard
SO many old quotations In It."
trust you will not regard these
admonitions as tantamount to ad-
vice on my part to keep .out of min.
ing. for such is not my intent In
common with all mining engineers
who are interested In the legitimate
development Of the great mining in.
dustry. I am jealous In my efforts
to eliminate. or at least to minimize
that class Of unscupulous promoters