Mines in Manhattan

Until last week if J. O. Villeneuve of Manhattan wanted to buy 1,000 shares of Dix Butte Mining Co. he would have to ask an over-the-counter house to search for a seller, or else arrange to obtain the stock on the San Francisco Mining Exchange. But last week when Mr. Villeneuve decided he wanted 1,000 Dix Butte he did none of these things. He simply went to the New York Mining Exchange of which he is a member, bought the 1,000 shares from Benjamin M. Berger, fellow member, for 40-c- a share. And in so doing he completed the new market's first transaction, for another exchange was last week added to Manhattan's already long list.*

In addition to mining shares (oil as well as metal), the new market will list stocks of companies in allied industries. Rigid listing requirements (a staff of technical experts will inspect all properties of companies seeking to be listed), rule against wash sales and other malpractices, promise that the Mining Exchange will not tolerate conditions usually associated with trading in cheap stocks. The best guaranty of this, however, is the reputation of the Exchange's President, Heber Charles Hicks.

President Hicks is a Salt Lake City Mormon of a family prominent in Utah. He has had over 20 years experience as a mine operator; has prospected and visited mining properties from Hudson Bay to lower California, now is president of three mining companies and connected with many another. But what makes him especially suited for his new position is the fact that he served for eight years (1921-29) as Director of Utah Securities Commission, state of many mining promotions. He wrote the Utah Securities Act, a classic. In 1925-26 he was president of the National Association of Securities Commission. Through various committees he is familiar with U. S. stock exchanges and financial practices, knows conditions the new market must face. Since the Curb moved indoors mining shares as a group have not received much attention in the East. President Hicks feels sure that with an open market ready they will now regain favor.

Turbulent, exciting has been the history of speculation in mining. Few men now alive can recall the discovery of the Comstock Lode in 1859, but many remember the phases of speculation which received their impetus then and burned long like fever throughout the country. In San Francisco this speculation was especially great. Around 1875 the San Francisco Mining Exchange was at its height. Police guarded its doors while the public clamored to buy Bell Isle, whirled by the "Tuscarora Ring" from obscurity to $5.25, then dropped to $1.25, or to buy Bodie, which caused the eastern public the greatest losses of any stock on its mining list. Last week the San Francisco Mining Exchange celebrated its 68th birthday the day the New York Mining Exchange opened. But seldom now do flurries cause great changes in its present stocks which include Carrie, Goldhill, Pony Meadows, Uncle Sam, White Caps, Lucky Strike, Golconda.

When mining speculation was flourishing in San Francisco, New York, too, had a mining exchange. In 1879 it averaged some 55,000 shares a day (against the new market's 8,000 on opening day). Some old New Yorkers can still recall the high hopes they had when they bought Bertha & Edith at 8-c-, the higher hopes when six months later it was 39-c-, the chagrin when it was stricken from the list as valueless.

In communities near actual mining operations, mine shares are always great attractions. In Spokane, Vancouver, Denver, Calgary, Colorado Springs, Salt Lake City, bankers and laborers take frequent fliers in penny stocks. Toronto and Montreal are scenes of a tremendous turnover in mining shares. In the unlisted department of the Toronto market are such divergencies as International Nickel, Subbury Mines (1 1/2-c-), Imperial Oil (Standard of New Jersey Subsidiary), Murphy (3-c-), Hudson Bay Mining & Smelting, Big Missouri (62-c-, controlled by Consolidated Mining & Smelting).

What shares will eventually be the leaders on the New York Mining Exchange is not yet known. In addition to Dix Butte, sales the first day were: 1,000 Genii at 50-c-, 2,000 Montana at 31-c-, 400 Moscow at 85-c-, 200 Newbec at 8-c-, 100 Park City at 36 1/2-c-, 50 Silver King at $7.25.

*Principal Manhattan exchanges: Stock, Curb, Produce, Metal, Rubber, Burlap & Jute, Cocoa, Hide, Coffee & Sugar, Silk, Real Estate.

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