Weekly Arizona citizen., 1880-12-18
TWO KINDS OF MINING.
\ New York View Of the Situation stock Speculation VI. Legitimate Mining.
New York Indicator.


 New York Indicator.
 While the future of mining specu- latIons and of stock companies is ex- tremely doubtful, that of legitimate mining is not. The reasons are ob- vIous. The former is largely depend ent on settlements, on unusual pro- ductions, and on the speculative in- clinations of the public. The latter is sustained by hard money taken from the ground in paying quantities by something as substantial as the precious metals themselves. Mining can be carried on without regard tU the condition of stock markets when mineral veins are worked simply for what can be made of them, and not used as decoys for making money out of the general public.
 The enlistment of capital in min ing, in opening up new countries CT in any profitable or promising under taking, great or small, is creditable and meritorious to those who engage therein, provided the money so se- cured is used solely for the best inter- est of the enterprise in hand. IL should be used wisely and carefully and not wasted in the many schemes that suggest themselves to the minds of inexperienced managers or dlrec- tors. Money is Ostensibly raised for the purpose of bringing a mine into a paving condition, or to furnish II with hoisting works, or reduction works, or ali three, in case they are needed. Consequently, the resources Of the company's treasury should not be wasted in any other way nor used eN- travagantly in any other quarter More than this, the mine should be developed steadily, and as much as possible for the payment Of dividends at regular intervals. It is where the reverse is the case, where a mine s contents are concealed, its stock de pressed and discouraged investors led to sell out at low figures, that legiti- mate mining has no place.
 There are many cases where capital is needed in mining enterprises. In one instance it may be absolutely nec- essary to place a deserted and water filled mine in proper shape. In an- other its main advantage is Tn expe- diting matters, enlarging production and in reducing expenses. Such in yestments are advantageous and req sonable where the value of mines have been properly tested But the mining industry suffers severely from invest ments made on properties either worthless or of too limited a charac- ter to repay the outlay. The East IS full of such companies organized on such properties, and more proposl- tions of like nature are now awaiting the decision of moneyed men. The main object in such schemes IS to stock them as high as possible and sell of the stock before the worthless ness of the mines are ascertained. In this way the original seller and the Eastern operators, who have taken hold ot the affair to enrich themselves and rob their neighbOrs, are enabled to rake in quite pile of money while the stock investors have only thelr eA- nerience and Q lot of worthless cer- tifieates to obtain consolation from. Snch operations and the conducting of mines in the interest of stock man inulators are continually tearing down inc good reputation the mining indus fry acquires from steady and uniform products. profits or dividends Tn other quarters. -.-o1,,
 That mining has been extremely profitable Tn many localities cannot De disputed. The building up Of states and Territories in the Western wild ernesses within few short years are evidences of the fact. Gold and silver m1nes have been found that have en- ricbed men and communities. Large and increasing populations have been sustained from their products, anu towns and cities, with all the accom- naniments of clyiliZation, have re- suited as the natural outgrowth- Many localities can be named where the amount of capital received m a decaue ar two. or from the time of the nrsl discoveries. has been insignificant, and that anDlied in so worthless a manner os to he of no benefit. The localities referred to here have grown to thelr present unfailing producing capaclty 6f millions per annum within very short snace of time. In one case Il may be two years, in others ten and II others twenty. The advance guard who made the first discoveries were as usual with prospectors, poor IT nurse. Since then thrifty populations have succeeded them, with resources and nroductions sufficient to induce canitalists to build railroads over al most impassable mountains to reach them. In any of these tiourishine mountain towns are banks, where th' miners aggregate deposits range from hundreds of thousand ot dol lars up to milllons-and all ae' cnmulated from labor in the mlne within two, ten or fifteen years More than this much money is contln naIIv being used in prospecting anI developing, or in what may be called exnerimental work, while other sum are sent away to famil es or friends II inc East or in Europe. Such resuit are evidences of legitimate mining I