OCR Text |
Show VOL. SALT LAKE CITY, UTAH, NOVEMBER I, mining Stock Exchange frauds. Truth has been hammering at and denouncing the mining exchange the daily paits methods for six weeks, The scandal bepers have taken it up. came so flagrant that it could on longer be ignored. When Mayor Thompson issued his orders some eight or nine months ago for the peremptory suppression of he should have included Lake Salt Mining exchange among the the rest, said an investor who bought The Uncle Sam stock at $2 a share. "as it he continued, mining exchange. has been conducted for the past year aveis greatly more pernicious than the majthe and rage gambling-housority of the brokers have much less principle and vastly less sense of honor A than the gambling-hous- e keeper. of class man who played in the better had a chance to win. gambling-housThe games were generally run on the square and combinations were not entered into and jobs were not put up to fleece him. He went against the game After their stock on the exchange, but the fact of them not being listed does not save them. The brokers get after such stocks on the curb and make footballs of them. Look at the record of Martha Washington some months ago. and more recently to that of Ingot, Califorand Uncle Sam! Marnia, Daly-We- st tha Washington ran up on false reports from 4 or 5 cents a share to 50 cents, and then down again to 2 or 3 cents, after the manipulators had unloaded. Take Uncle Sam, a really meritorious, dividend-payin- g stock, on its merits on a basis of fair interest on an investment, worth in the neighborhood of $4 a share, by conspiracv and actual fraud knocked down to 70 cents. Daly-Weis another example. The stock was $45 a share and as an investment worth the money. The mine is producing more and richer ore than ever, with no signs whatever of giving out. It is paying its monthly dividends regularly, with indications that the dividends will be increased. Yet the stock is knocked down to $2S a share, and so on through with a knowledge that the percentage the entire list. was in favor of the bank; that the house had to have a margin to enable it to run and the proprietors to live. If his luck was with him he could overcThe system is that the broker sells ome the margin for a time at least, he stock to his clients, sells probably and the games as a rule were run on same block of stock to half a dozen the square. When the operations of he lifferent men on margins for spot and the professional gamblers were stopped thev and their patrons transferred uture delivery. When Mr. Broker gets themselves to the mining exchange and i good line out, then his cappers and got fleeced by the brokers, in common confederates are put to work on the opwith the general public, who take a fly posite tack. Lying reports are In stocks the and genuine circulated to the effect that occasionally, investor fared no better. The methods is giving out, that litigation is mine ;he employed by many of the brokers, their ibout to be commenced, that ore values cappers and confederates are nothing ire running low, that damage suits are more nor less than bunco games, and :o be entered against the company, and as a matter of fact the majority of the n every imaginable way the stock is brokers are nothing but jelittled by the cappers of the broker Down minus the measure of honor ,vho has loaded up his clients. which even attaches to bunco men. joes the price. Those who have bought Wien compared with the mining rf margins are promptly closed out If brokers, who dominate the exchange alls for further margins are not rethe professional is a gentlegambler sponded to. The wrecking system Is man of bright and untarnished honor. continued. Those who have bought and aid for their stock are scared and ;hrow the property on the market, That is a severe but arraignment, get from .tumbling over each other toassistance a matter of the broker fact It not much, if ar the by mder, and overdrawn. There are some men w f his cappers gathers in the sheckels, have seats on md the onslaught continues. Thats the exchange who do :he kind of business the mining exhonest, straight w those but business, change has been doing, but the game flont are so much in the majority th s about up. So flagrant have become atar.evomnate entire institutic he manipulations that prominent Z "aVe brought it into deserved d: to the as torneys are investigating F?6' The mining exchange was chances of bringing some of the more of jaDiished with the avowed object of ai iishonest operators into the clutches e development of the mines crim-nfor them the law and prosecuting of bringing them to the n It would be a. good conspiracy. r Eastern of a few or people and eneouragi thing to make an example good for the or5 antl capitalists to bring thi them, good for the public, v?ey here and do legitimate, squa lonest members of the fraternity, business, lawess In the development of t ire trying to do a legitimate in JzJt resources 0f the State. It h industry for the mining md good the very reverse. It is scari: general. Vo,? captal and keeping legitimate "'hile ?Jit' it pursues its me tremJtemptibk system of robbery. It h A number of the brokers are Smunft S!5nk in the nostrils of t dread of being bling In their shoes in Its occupation has go SS!ty;X" wolves arrested and prosecuted for criminal are preying up each lhe, to rob their clients by loadhas become an all geth conspiracy and then conto lhe Prn f'ious institution, a disgra ing them up with stock cjty and the State. a fall in prices, spiring to bring about retain the marto thus enabling them up by their dupes. It looks put gins Who have meritorious so as if the crooked brokers might propertipaWlr,S have become afraid to list be held in a good many cases for the . gam-b'ing-hous- es e, st es indus-rious- ly bunco-stee- rers, al i- 1 Price 23, 1901. losses that have been made. One of their plans has been to use the actual stock bought by their clients to depress the market. When customers buy on a margin the broker holds the stock certificates and when he gets ready for the onslaught he brings out the stock held on account of his clients and throws block after block of dt on the market, thus using his customers as a club to beat them. It is absolutely illegal for the broker to use the stock certificates of his clients, and where it can be proved they have done so they would be liable for damages. 5 Cents. of intentional fraud, is the wiping out of hundreds of thousands of margins. The average speculator of small means during the period of inflated values was permitted to obtain a temporary possessory interest in stock by depositing with his broker 25 to 50 per cent of its then market value. As the stock fell, to protect his Interest, he was obliged to make further deposits, and when he reached the limit of his means the broker pocketed the speculators money and sold the stock. It is a safe presumption that in many Instances the wise broker never purchased or held the stock for his client, trusting to the success of a bear movement to put the price far below the figRemedies are being sought to protect ure at which it was margined. meritorious properties from the onslaught of conspirators. It has been suggested that the next Legislature No doubt the present state of the might pass a law requiring mine own- market is below what even the brokers ers to issue monthly sworn statements of the condition of their properties and themselves expected, but the dear pubthereby nullify the false reports that lic having been humbugged out of its are put out regarding the mines, either ready funds has nothing more to spend for bull or bear purposes. It has also and the is unsupported. It Is been suggested that brokers buying probably market a to lesson valuable the specuand selling on commission should be lators and a valuable experience to the prohibited from trading oh their own exchange. that the account. It would be difficult to frame reputation ofNotwithstanding must Salt Lake suffer a law of that kind which would hold and Utah mining stocks will be placed or which could not be gotten around, on the list of shaky securities, moneyed but the fact that such a thing has been men are justified in refusing to protect suggested shows in what direction the the market, the illegitimate operators thoughts of the public are trending. will be forced to retire from the business, and in the course of time the Salt Lake mining exchange will assume a as a financially important inThere are sixty-nin- e mining com- position and the market will be govstitution, panies on the board, of which about erned from day to day bv normal and twenty are classed as dividend-payer- s. justifiable influences. There are seventy firms on the mining exchange and about 200 hangers-o- n and cappers, who have been making a The feature on the exchange this good fat living and liberal spending week has been the slaughter of the dividend-payin- g money out of the public. As a matter meritorious stocks. of fact there is not legitimate business The early days of the week It was ter- of that number, rlble, but towards the end there was to support and the most of the money has been some slight improvement In values. made dishonestly and by the most reprehensible methods. The public has lost all confidence in the mining exThe old Ontario is again coming to The volume of business has change. fallen off fully 50 per cent, and it will the front as a dividend-paye- r. The dicontinue to decline. The brokers are rectors at a meeting In New York a hatching schemes, making new rules few days ago ordered 30 cents a share, and so forth to entice business back or $45,000, distributed among the shareagain, but the robbery has been so fla- holders on December 20th, grant that people have become exceedingly wary. Its too late. The present mining exchange has gone to pot, and Assays from forty-on- e and half of the brokers will the capp samples of ore a work for ut to and Thunder have from living. mountain, In Idaho, gave values averaging $6 a ton. It is ore and is pronounced by Prof. The modus operand! of the brokers is Mead and others the biggest thing of its boosted kind in the world. The quantity of the devious. Formerly . they stuff is almost limitless. mines of no value, but recently their V V T graft has been to depress stocks of real value. On the Boston exchange investAt the adjourned meeting .of shareors customarily figured on 12 per cent holders of the Ely Gold Mining cominterest on mining securities, but since so William stocks M. Bradley was made money good proved pany, the copper makers the Boston standard of interest president; O. J. Salisbury, was reduced to 8 per cent. On that W. P. Lynn, treasurer, and W. B. basis Uncle Sam, with its dividend of Sproge, secretary; these officials, with 3 cents a share a month, should be $4.50 the exception of the secretary, to serve a share Instead of 70 cents, the pointa with L. H. Farnsworth and J. V. C. Carissa is touched on Tuesday. Thompson as directors for the ensuing similar proposition to Uncle Sam, and year. The property Is In first-clahas been treated in very much the same condition. show way. The daily market reports 20 per cent not but transactions, large of the stock reported as sold actually A new ore body has been discovered sells to anchanges hands. One broker In the Yankee Consolidated. The block other and the loser pays $1 or $1.50 as in Is twelve feet between walls. The most mine vicious The any other skin game.which savors most was never in so good and condition, one the and result, pre-arrang- ed one-four- th -- free-milli- ng - vice-preside- nt; ss . -- |