The Wallace miner. [volume] (Wallace, Idaho) 1907-current, 1917-02-15
POINTS FOR INVESTORS
BUYING MINING STOCKS
BEWARE OF HIGH ASSAYS AND
REPORTS OF HEAVY
SHIPMENTS.

| The fact that a mining company is
getting good assays or is making hui
lion shipments or is shipping a good
ore tonnage while an excellent indi-
cation of activity at the property is
not good evidence that the company is
earning money or is upon dividend
paying basis, says the Denver Mining
Record. The rich assay may come
from knife blade seam; a shipment
or bullion may cost more to produce
than will be received for it at the mint
and an ore shipment after paying min
ing transportation and treatment
charges sometimes means a loss to
the shipper. Then again a company
may have only lease and option to
purchase certain property and this
company after paying stiff royalty
to the owners of the property finds
that there is little if any profit for the
company holding the lease.
Examine Company Assets.
Here is point that investors should
be very careful to fully investigate.
INSCRIPTIONS promoters selling stock
in companies with no real assets ex-
cept lease and option to purchase
certain property may tell you of heavy
shipments being made from the prop
erty in the hope that this information
will cause you to buy stock in the
company. If the company Is shipping
ore and making money you may be
sure that if there is any stock for sale
it is being sold to facilitate larger
shipments, to build up a treasury re-
serve so that payments on the pur-
chase price of the property can be
made or for some other equipment
measure. Otherwise it is being sold
to enrich the promoter Definitely in
form yourself as to the assets of any
company you contemplate investing
in. If full facts are not obtanable
don't invest. If the company you are
investigating holds lease and option
to purchase certain property and if
this company wants you to invest in
the stock you are entitled to full in
formation as to the amount to be paid
for the property and the time the
payments are due Look into the di-
vision of the stock as between the
officers and promoters Of the company
and the treasury of the company. We
have known of promoters with the
nerve to rob the treasury of a COM
pany of half the capital stock for the
transfer of lease and option to pur-
chase a certain property. OF course
companies of this kind have only
about one chance in a thousand to
ever secure deed for the property or
become a dividend payer. And when
the promoter has sold his stock the
company goes out of existence to the
complete loss of the purchasers of the
stock of the enterprise
Crooked Promoters.
Beware of the company that heralds
the shipment Of a small amount Of
ing of tom toms and big gobs of pub
licity 1t will as a usual thing be
found that companies of this class
are. strictly speaking, stock selling en-
real facts upon which a business man
could base his judgment but which
adopt every method known to the
crooked promoter to turn stock GER
Mt Of hn m
come so well educated in regard to
investments that not one cent of your
investment funds will reach the bank
account of the fake promoter posing
as mining operator. These gentry
operate in the dark. They reach the
investor under cover of the mails.
You do not see their advertisements
in publications that are educating the
people in regard to good and bad in
vestments and working for the up
building of the mining and oil indus
tries.
There are so many good invest
ments being offered the investing pub
lie at the present time by the promot
ers of legitimate mining and oil en-
terprises that it Is to be wondered at
that the mail order fakirs can con-
tinue to do business. IF every pur-
chaser of stock would investigate the
past records of the smooth, but dis
honest, mail order stock statesmen he
would be richer and wiser.