The tribune. [volume] (Great Falls, Mont.) 1890-1890, 1890-01-18
GREAT FALLS TRIBUNE.
SATURDAY. JANUARY 10. 1880.
SEMI-WEEKLY
MEXICAN MINING LAWS.

In some respects the Mexican and
American mining laws are alike. In
Mexico representation work" as we call
1t must be continuous. Each year a GER
tain amount Of work must be done to
keep the title secure. The American
method is preferable, since it warrants
mine-owners in establishing extensive
works without any risk that the ~title,once
secured, will be forfeited by negligence
or inability to proceed with mining oper-
atoms for the time being. But in Mexico
where the climate is mild and money
goes a good way, the provision is pru-
dent, which requires that the mine must
be worked to prevent forfeiture.
As regards acquiring mines, the Mexl-
can law is more liberal than our own. In
the sister republic all mines are supposed
to be the property of the nation which
has succeeded to the rights held formerly
by the Spanish crown. All property is
subject to this mining right of eminent
domain. Any person may "denouce,"
that is, lay claim to property which he
declares is mineral. He makes known
his claim to the project of the district,
who gives him possession after allowing
a certain time for contestants to appear.
In practice this rule works we'll. 1t
obviates disputes as to titles and serves to
stimuli tie mining. The prospector who
finds mineral deposits on a ranch is not
compelled to buy the property from the
owner, who might be averse to sell the
land or work the mine. He has a strong
incentive to search for mines and is at
liberty to acquire an abandoned mine if
he supposes that it may still be worked
to advantage. In a country where boun-
Diary lines are uncertain this easy way to
acquire mines is of much service to the
prospectcr, who need not ever be a Mex
lean citizen to gain a perfect title.
In Mexico the mining companies are
generally on the assessment basis, but the
law provides that all money expended on
the mine shall be repaid when the mine
becomes productive. 1t follows that the
stockholder who discontinues paying as
sessments does not forfeit entirely the
money which he has paid. This provis.
ion prevents one of the worst abuses of
the assessment system. 1t is based on
the assumption that all money expended
in good faith Oh a mine serves to develop
it and should at least be refunded by
those who are reaping perhaps large
profits from the enterprise which poor
miners started.
In accordance with old custom, Mex
lean mining companies are composed of
"a shares, which, like lottery tickets, are
sHb-divided into eighths, s%ixteenths and
so on. This custom does not preclude
the forming of companies On the Ameri-
can or English plan, in which shares may
number 1000 or more. The Mexican
plan tends to limit speculation and even
to check the ordinary dealing IN mining
shares. On the other hand, it is not Gus
tomary to stock mines for sums far in ex-
cess OF tnelr actual value.
The division of mines into "a shares
promotes the leasing of such property.
A mine owner who lacks capital will
sometimes agree to give 20 shares to per-
who will work it, retaining four
shares which are unassessable. When
the cost of development has been repaid
and the mine is yielding dividends then
the four shares participate in the profits.
Whether the division is just depends
upon the productiveness of the mine.
the mine-owner will give an
option on his four shares which will en-
able the working company to acquire it
all on perhaps reasonable terms.
The Mexican mining laws are about a
century old. They were compiled by
order of the Spanish court and were in
tended to encourage mining by establish
Ing a system of perfect equity. Any
abuses which have arisen are due to the
execution of the laws rather than to the
laws themselves.
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