The Washington herald., 1914-07-11
THE TRICKS
OF THE TRADE

(Copyrisht. 1914 By C NJ Keys New York;
Some years ago a man with more
money than sense met a mining pro-
moter with more sense than money.
When the promoter found out that his
new friend really wanted a mine all by
himself. he took pains to find one for
him. After he had told him all about
Il, a party was made up by the victim
and some OF his friends to go down into
the Southwest and look at the property.
They had a jolly time on the trip. and
when they got to the property they
found a big mine running full and a7-
parently exceedingly prosperous. They
came back to the East. and negotiations
went on for the purchase Of the prop
erty. In the course Of time the stock
was turned over to the new owners.
and they secured the right Of possession
at a certain date.
As Of that date. the new owners Of the
property sent a practical mining engineer
to take charge of it. When he had been
there a day or two, he wrote to his
people in New York, telling him that
the thing they had was not mine al
all. and hardly even a prospect II con-
sisted. in fact. of a little bunch OF
claims practically undevelOped- There
was no mine on it. and SO far as the
engineer had been able to discover in
an offhand investigation there never
would be. What he wanted to know.
according to this letter. was what he
was being paid for and what he was ex-
pected to do.
The capitalist called up the office
where he had been accustomed to get in
touch with the promoter. but was in
formed that the line had been discon-
tinued He called up the superintendent
Of the building and found that the lease
had been cancelled and that 1t. at anv
rate. was only short lease. He took
train for the Southwest Immediately
and wired the engineer TO meet him.
When they got together they discovered
that the property he had bought was
about fifteen miles from the property he
had seen. and had no relation to IL
whatever He went to the property over
which he had been shown and asked for
the superintendent who had conducted
the sightseeing expedition a few months
before. He learned from the new super
intendent that the old one had resigned
two weeks ago and that he left that
section Of the country for Chicago. HeI
had left 20 address at which he could
be. reached.
To make n long story short. neither
the promoter nor the superintendent OF
him was ever caught. and so far as the
records go they are still at large enjoy
ing the price OF the mine they sold
without owning II. OF course, nothing
was ever made out of the claims that
had been purchased. The investment
was a total loss.
That is a Glaring example of a real |
swindle of a financial sort |
II is rot done to any large extent. or |
on a big scale. nowadays; for It is too |
dangerous Yet 1. has been done in
very recent times. II was done in ths |
case Of a rubber plantation in South |
America only two years ago, except that |
the property itself was not visited. |
OF another property in a |
high state OF cultivation were used in |
prospectus TO float the stock OF a COM |
pany which owned title to some large |
areas of a doubtful char J
acter. and less than 10 per cent Of the |
money raised by the sale OF this stock |
to the public ever went into the de- |
velopment of the property. That also |
was a total loss.
Somewhat akin to this trick in its |
character is the fotation of stocks on the /
critics they represent are near certain
other weIl-known properties or that the
inventions which they represent have n
hem the characteristics that made the |
great success of the Bell Telephone.
Eastman Kodak. etc. There seems TO
be nothing criminal about such repre-
sentations provided there is a reasonable
room for the opinion implied in such a
Nevertheless the trained |
specialist in securities Is always ex-
doubtful when any one tried to
induce him to buy this, that. or the other
bond. or stock. by using a comparison
" this sort.
A capitalist in New York, who was
Tisited by a salesman for a bond house
rot long ago who was trying to sell the
'onds Of a railroad by the argument that
hey were very much like some of the II
Underlying liens OF the st. Paul and the
when these were doated
hirty or forty years ago, ended the in-