Show INVESTING IN MINING STOCKS in our editorial last week we stated that stock selling is fast becoming a veritable science this is true but very few of the investors know anything of the nature of the business and of the cost of finding t a market for a mining stock especially if the company owns only a prospect no great mine is found occasionally some rich pockets of ore may be discovered with very little work but almost without exception such properties soon drop back to the class of mines which require much more development and greater equipment no great mine has been developed without great cost and much time in the case of lead silver mines and probably in the case of gold mines the average cost of development is not less than it takes also from three to seven years to develop such a prospect into a mine in the ease case of big copper mines the cost runs into millions and the time almost into decades many people often become discouraged and after they have spent their money for the stock much of which has been spent in the development of the property they are ready to sell and at a sacrifice the seller loses nearly all he has invested on the other hand it if his patience had held out a little longer he would have harve made a good fortune on his investment A concrete illustration may be used A number ot of years ago what is now the beck tunnel con stock was put out at 50 cents per share and it advanced to from this point it receded and was selling at three quarters of a cent per share after several assessments had been paid then came a period of waiting after three or four years oi of inactivity work was resumed on the property under new management and the stock started out at 4 cents per share this soon alvan advanced ced rapidly and a nd the property belan began the payment of dividends it has paid 67 cents in dividends and at one time sold as high as the investor who bought at 50 cents per share and did not take his profits at but sold out probably at one cent per share lost the opportunity of making mahin a small fortune if he had held on when a mining 1 I stock is offered for sale by a promoter or agent the investor should make inquiries on three points he should find out first as to the location of the property if this is favorable in a well known mining section and in a region that has already been productive then the risk is not so great he should ascertain whether the management is capable and whether it is honest the management may be incapable and honest and the investment loses itself if the mpa management gement is honest and capable then the risk is still greater reduced the investor should make careful investigation and not buy a mining stock simply because the agent in quoting terms shows the great possibilities and uses as illustrations the success of other ventures too often however the investor is lured hired by the desire to get 0 rich quick and feels that a small sum invested in a t good stock will be the means of making t him independent he puts in his money without further consideration it costs a great deal too to sell a mining stock the actual cost is anywhere from 25 per cent to 75 7 per cent of the first selling price the investor must therefore recognize the fact that all of the money he puts in does not go to the development of the property much of this must be used as commissions and expenses if he wishes his money to be used more largely in the development of the property he should be willing to buy another class of stocks he will not have to pay so much in the first place and the money which he pays later would be used in the development of the mine this has reference to the purchase of assessable stocks too many investors however are anxious to buy only nonas non as ses sable stocks these often lose him what he has put in and also take away the chance of making any profits if the sales which have been made are not sufficient to develop the property the company will have no means of raising funds it would be best therefore for those who are giving their attention to the selling of stocks to be sure they have something good to offer and that the management is all that could be desired that the property is well located and that the stock is assessable it will take some time probably to educate the investing public but the selling of mining manint stocks is a peculiar science of its own and it should be taught by those well versed to the investing public which is not educated to the point |