The Wallace miner. [volume] (Wallace, Idaho) 1907-current, 1916-01-13
MINING ON THE SQUARE.

The Occur dAlene district has come
to be regarded as the safest field in the
west for mining investments, and there
are reasons for this condition. Many
years Of large and uninterrupted pro-
duction have proved the continuity of
the ore bodies, and scientific study
of the veins and formations in connec-
ton with ore deposits now affords
practically an unerring guide In the
development of new mines. Coupled
with this and of equal importance Is
the fact that beginning with the earli-
est mining operations the men who led
the way in developing the great ore
bodies of the district were engaged in
actual mining who were looking for
profits through the extraction OF ore
rather than through creating ficti-
tious value to mining securities, or
through the sale of treasury stock on
a commission basis that left little to
go into the ground for development
purposes. The men who have followed
them have as rule been of the same
type, and the result is that in no dis
trict In the west are mining operations
conducted on a higher plane, nor one
in which development companies give
a more conscientious attention to the
expenditure of money paid in by their
stockholders.
But in spite of the strong sentiment
that has grown up in the district which
insists upon square deal to every in
weston and fair run for his money,
there have been occasional cases in
which these elements did not prevail.
Perhaps the most frequent imposition
upon investors in mining securities has
been In the sale of treasury stock on
commission. There have been in
stances in which the commission was
the big end of the purchase price, the
purchaser being led to believe that
practically all he paid in for the stock
was to be used for the development of
the property under capable manage
ment. while as matter Of fact the
vendor of the stock placed most of the
purchase price in his pocket as COM
mission for making the sale. There
can be no reasonable objection to the
payment of fair commission to the
than there could be objection to the
margin of profit to which a merchant
is entitled on the goods he sells. But
when mining stock is sold upon the
representation that the proceeds are to
be used for bona fide development pur-
poses, when the fact is that so or rs
per cent of the purchase price Is paid |
to the agent as a commission for SELL
ing the stock, the purchaser has clear |
ly been defrauded, and it is only a
question of short time when a dis
trict that countenances such transact
tons will be Stunned by investors in |
mining securities. This district has
been comparatively free from such |
stock transactions and the attitude of I
the people here is strongly against
such methods. However, such meth
DDS have occasionally been successful
" used in connection with mining pro-
perty here and they may be again I'M
less investors insist upon knowing
what proportion of the money they pay
n goes to the agent as commission
md what proportion goes into the
ground for development. The blue sky
aw was enacted to protect the public
n such transactions, but it is not self
.cting; 1t must have the support of
he public to make it effective. &