The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1867-07-02

see nothing in them to alter the conclusion at
which we had previously arrived, that the
crops this year will be the most luxuriant, both
in regard to quality and quantity, that the
country has ever known.
Mining Enterpris-s-The Causes Of Their
Failure.
1t is but few months since that the mining
M, rket was all activity. Bob Tail, Yellow
Jaclu 1t and Centre of Gravity lodes were to
make enormous fortunes for whoever was the
owner o,' q single foot. Castles were built
heavenvara by hopeful daughters, who saw
themselves 4. shing through the Park be-
hind q pair of Arabs, the envy Of all those
whose papas had not invested in Golconda.
Mothers reioiced that !. length they could ride
into society upon piles a goa or siiver' ana
forthwith commenced to A"k opera study
French and practise dress pasaae' Inc bubble
burst Hopeful revoked the Order for tho
painting and baking of line o. ancestors
Pr0udfoot no longer hunted for hNs coatoF
arms, and whole crowds postponed TIER
European tour and visit to tNe Pa ris EXPOSE
ton. Thus wild investments hal the. natural
results, and the Eastern capitalists to- * thelr
first and best lesson in the mining businA S
From all this legitimate mining cnterY< Uses
will soon reap great benefits, while the nunM =
Gus bogus ones that have been foistsd upon
the market by shnrpers who have taken
advantage of the excitement of the hour will
sink out of sight and in few months be
entirely forgotten.
Bad management Is the usual cause Of the
failure of most mining corporations, and every
company should look to this point with the
greatest care. Men of sound practical mining
knowledge, engineers by profession, should fill
the positions of respons bility, and companies
should understand that it is cheaper to pay
good manager ten thousand dollars per year
than an ordinary one two thousand.
In most cases all Of our companies have
been started with too small working capital;
and the natural result has been that the first
assessment upon the stock being made and ex.
pended without any returns to the stock.
bolders these naturally, in their ignorance OF
mining, become disguised, and refuse to con-
tribute further to develop their properly.
There are to-day all through Colorado, Nevada.
MES which have carried forward their works
with but little cash, and which alone lack
little further enterprise on the part Of the
owners to make them splendid success. No
proverb is truer than the old Spanish one-fhat
ait takes mine to work a mines" and no
great mining enterprise should induce an In
vestment that has not solid working
capital for, while the returns are frequently
enormous, the contingencies also frequently
demand enormousoutlays Numerous instances
may be cited where some of the most brilliant
enterprises have Jagged along for years fos
lack OF a proper organ cation at the start
Many Of the companies whose failures have
been the most glazing have commenced their
mining operations backwards With veins Of
ore that were apparently rich, or at least have
yielded few picked specimens with which to
furnish suoh promising assays that company
might be formed, they have raised perhaps two
hundred thousand dollars. OF this amount
ninety per cent has been expended in tho
erection of mills, works of different kinds, and
machinery at an enormous cost to place in
them. With the conclusion of all this, and tho
Photographic pictures of the works above
ground, to tickle the eyes Of the highly de-
lighted stockholders, the pittance remaining ol
the working capital Is invested In the opening
of the vein, which Is found generally 10 de-
mand an outlay much above the cash on hand,
or else to be SO poor and difficult to develop
that it is not worth the working. The build
ings, located generally where they can be Of
no use for any purpose, then complete tho
failure of the enterprise. Again too much
money has been expended in undevelopsd
property, and millions of dollars have been
lost In expensive prospecting, while had tho
expenditures been made in the development
OF the veins of well known mines there could
have been no failure of satisfactory returns.
This is well proven in the history Of the great
mining enterprises Of Mexico, where money Is
always expended by preference in the old
mines which are known to have yielded largely.
and which have, in most cases, abundantly
demonstrated the truth of the theory.
The bad management Of most companies
should not dampen the development of our
wonderful mining resources; for in them lie
much of our national bone and sinew. We
look upon the loss of some $25OOO0,O0O in
mining, within the past two years, as q very
natural result of the lack of education which
we needed in that direction. It will bring its
benefits; great organic, tions will carry on
their works upon o firm and healthful basis, con-
Hdence will then be restored in legitimate en-
terprises, people will no longer invest in Wild
cat schemes, and mining will take its plaza by
the side Of other great interests, as one Of the
safest, as It is, when under good management
one Of the most profitable Of Investments.