Mining Notes

A. S. Pettit, class of '79, now living in Denver, Colorado, stopped off ia town the other dny while on his way east. lie has been practicing law, selling real estáte, etc., and has been gettlng on well in what he has undertaken out west. He Ís pretty well posted on mines la his state, and as many hereabouts are dreaming of great fortunes to come from mining investments, ve interviewcd him sorue¦what as follows : Are many people making fortunes Ín inining? No. A few make enoruious wealth, but the many get " frozen out." How is that done? Well, you see, the most of these who invest are distant from the mine and do not know anything about the business. It is all in the hands of a superintendent, frequently an irresponsible cuss, who gets a big salary and works the stockliolders more than he does the mine. With the stock sales and assessments, machinery is purchased, the tunnel is run in a ways and in case a rich yein is struck he and his friends get control of a majority of the stock by a combination of a few of the larger holders, aided by the proxies of those not present, and put a mortguge on the property for whatever amount they choose. It is foreclosed shortly, and they buy it in for a song, tlms freezing out all the little suckers. Then they go to work with machinery, tunnels, etc, already supplied and make ttieir fortunes, leaving their dupes to stand around bemoaning their " hard luck" for a time, until the next scheme comes along, when they bite and are bitten again. But how is t, Mr. Pettit, that some good business men frequently go into these companies? Oh, they don't put much money in them. For you know, in order to sell stock the projectors of a scheme must get some good names to head the list. To these men they give the stock. So on the strength of their names otliers invest. Is thnt considered honorable out West ? Well, not exactly, but then that is how it is always worked in the Lhst. Are there other ways by which innocent stock-holders are Hable to be def rauded ? Oh yes, a good many. In fact they have no chance, even if it proves to be a paying mine. And of course they lose f it does not pay. For instance, frequently companies are gotten up to open a mine which has not been patented. Then when it is in good shape sorae one "jumps" their claim and they are left. If there are several mines owned by the company, those are pntented which will not be good for anything and the good ones are left for the omnipresent "jumper," who usually " stands in '' with the man who first worked ofl' the property on the company. What is the bett way to Invest in mining. The only safe way is to own enough of the stock to control it. Then you will not be " frozen ont." Sometimos, however, three or four friends, who know and can rely on each other, can take equal shares of the whole and hang tosrether.