Usually a man who has discovered a mine

Usually a man who has discovered a mine can in a little while find someone to undertake its promotion, and then, if the agent is not strictly honest, the contracts and agreements are so drawn that the owner is completely under the control of his agent. Usually the first step is to make an agreement stating on what terms the agent may control the property. Frequently the time limit is made as extended as the mine owner will allow, and the promoter goes to work or perhaps only appears to go to work to obtain subscriptions for the proposition. At any rate the expected contributions to the working fund are not obtained, but men are introduced who urge that if the mine were put in a company, then stock could be sold and money obtained, so after a time a company is formed and the property is transferred to it for shares, some of the shares are voted to the treasury, and a goodly proportion to the promoters, who now take more interest in the property, naturally because they own a large share in it. Some money is obtained through the sale of shares, most of it going to the promoters who sell their own stock it is theirs, what law can prevent them from selling it? Some money is used on the property, enough to perhaps demonstrate to the promoters that it is a good thing, and then the whole proposition drags, money cannot be raised; the prospector must live, and presently he wants to sell some shares. Impossible, there is no market, the promoters have been unable to even sell the treasury stock. To remind them of their promises is of little use, what they said was what they expected to achieve, but for one reason or another conditions have not been favorable; after a time when the situation improves they will be able to carry out the arrangements; but the prospector wants money, so he finally sells a large block of his shares for a trifling price, and when he wants more money sells again; and presently all his stock is gone, and the mine he discovered is no longer his. Then he goes back to the mines cursing the promoters, damning corporations and swearing that stockholders are a set of sharks and thieves; but it is the promoters who have bought his shares for almost nothing, and now that they own all the property, or rather have it all under their control, with the majority 1 owned by them and a good balance of stock in the treasury, they go to work and develop the property, obtaining money by selling the shares; and most likely let the property fail two or three times, and by foreclosure or bankruptcy proceedings buy it in, and sell the shares of reorganized companies, repeating the operation, till finally the mine is on a working basis ; and they have obtained the property from the discoverer, at forced sale, and by manipulation, and who have obtained money from several sets of stockholders to bring it to development, reap the benefit of their conspiracies, and own a fully developed mine.

The question may be asked why does the prospector have to do as the promoters or agents desire? Why does he not sell his shares directly to the investors? He cannot do so investors will rarely listen to the man who owns the property and buy shares of him ; and then he does not know how to organize, and naturally he seeks the promoter; and if promoters who may not be honest have obtained a hold on his property he must sell through them or not at all, for who would buy a stock if those who have organized the company express doubts and rather talk against the proposition, and criticise the discoverer. Of course, people will not buy, and probably it is well they should "not ; for a set of promoters who scheme to freeze out the discoverer, will later, if the property turns out well, scheme to freeze out the investors, and losses will result to both the discoverer and those who may invest.