The Mining-Stock Exchanges of Colorado.

The year 1895 in Colorado was one of gold-mining development and mining-stock speculation. Gold has been mined in Colorado for more than three decades, and people there have speculated in mining securities for years past, but not to the extent that is now going on. This is the result of the fall in the price of silver, stimulating the search for gold, resulting first in the discovery of the Little Johnny gold mine at Leadville and in the special attention drawn to Cripple Creek.

Crowd Outside the Cripple Creek Stock Exchange

The history of the year's trading in mining stocks is practically the history of the exchanges, and Colorado Springs being the most important speculative center demands first mention. The old stand, therefore, perhaps the best known of all the exchanges located in the famous health resort, is the Colorado Springs Mining Stock Association.

A number of prominent men resolved to further Cripple Creek's progress by legitimate trading in the stocks of the mining companies operating in the new district, as well as of companies in other camps of the State. The result was that the association was incorporated in May, 1894, and opened for business on September 4, 1894, with 31 members, each of whom paid $180 for his seat.

With the undoubted reputation of the members and the able officers of the exchange, in addition to the favorable developments in the mines of Cripple Creek, the institution could not but prosper. The business of the association increased so rapidly and seats were in such active demand at $1000 that the Governing Committee deemed it wise to increase the membership to 50 at $500 each, which would mean 19 new members. The books were opened on October 31, 1895, and nearly 50 applications were immediately received, of which 35 were considered desirable, and consequently the total membership was raised to 66.

Since the books were closed seats have sold as high as $750 and were held at $900.

Not the least reason why the Colorado Springs Mining Stock Association was for a time the only really prosperous mining-stock exchange in the United States was the precaution observed in listing stocks. The business reputation of the members was established, and the association as a body also soon made a reputation for itself by its actions in sifting carefully the merits or at least fair chances of the stocks to be listed.

Its rule is that a company must have produced at least $5000 net within the preceding year, in addition to passing a rigid examination before the Listing Committee and the exchange attorneys, before it can be listed as a mine, thereby securing title and legal issuance of stock. Prospects may also be listed, but they must make sworn statements and pass the same examination as mines.

Mining Stock Exchange, Colorado Springs.

The exchange recently appointed a building committee and has purchased a property on which an exchange is being erected which will be a credit alike to the members and to the city.

Just a year after the incorporation of the Mining Stock Association, and in consequence of the increasing demand for mining stocks, the Colorado Springs Board of Trade Mining Exchange was organized with 100 members and a membership fee of $100. The total number of seats was at once subscribed and there have been no vacancies.

It had the advantage of active and enterprising officers and a large list of stocks to select from, and so prosperous has been its career that seats rose to $500, though few holders are willing to sell even at that price. This exchange is also careful about listing stocks.

In the fall of 1895, so great was the volume of business of the two exchanges that a third was launched in the shape of the Consolidated Exchange. It did a respectable business. Since the close of 1895 the Board of Trade and Consolidated exchanges have united.

It is difficult to overestimate the growth of the popular demand for the low-priced mining stocks dealt in at Colorado Springs. All sorts and conditions of men, and women too, bought and sold mining stocks as an investment and as a speculation.

The Mining Stock Association, or rather its members, received orders from towns and cities all over the country, in addition to a heavy local trade. Its total sales for the year from May 15 were 18,721,122 shares of listed stocks, having a cash value of $3,653,150, and also 36,257,997 shares of unlisted stocks, a total of 54,979,119 shares.

The Board of Trade sold from May 15, when it opened for business, to December 15, or just 7 months, 75,991,072 shares of stock, representing a cash value of $3,402,126. In a single day 1,768,765 shares changed hands, and there were days in which the cash value of the stock sold was over $250,000.

The Consolidated, being but a few months old and not so well known as the association or the Board of Trade, showed more moderate dealings.

Cripple Creek Mining Stock Exchange Ass'n. Structure

Though but a few miles away from Colorado Springs, Cripple Creek also felt the need of an exchange, and the Gold Mining Stock Exchange of Cripple Creek was organized in the fall by some well-known residents of the camp. In the two months of its life in 1895 this exchange reported transactions aggregating several million shares.

The speculative movement spread so that an exchange was also started at Pueblo, the local demand apparently justifying such a course.

Of the existing exchanges of the State the oldest is the Colorado Mining Stock Exchange of Denver. It was organized and commenced business in July, 1889. It prospered for a time and then came the decline in the price of silver and the general business depression, owing to which the business of the exchange fell off to a very small volume, most of the stocks listed being of silver-mining companies.

After a depression lasting nearly three years the developments at Cripple Creek and in the Leadville gold belt revived popular interest in mining stocks. The Denver Exchange profited accordingly. Though the "boom" did not strike Denver until comparatively late in the year, the exchange did a much heavier business than in 1894, its total sales of listed stocks being 63,149,450 shares.

It was also proposed to deal in mining securities at the Denver Real Estate Exchange and elsewhere in the city, but the old exchange did the greater part of the local business.