The Helena independent. [volume] (Helena, Mont.) 1875-1943, 1890-11-11
HOW TO INVEST IN MINES.
Some Practical Suggestions From q Pra
teal Mining Expert.

~'~As--e-o ~~k~O~.
MIR. w. T. Mendenhall, in his history o.
gold and silver mining in Montana. has thu
to say about mining investments: There
are different ways of investing in mines Of
mining stocks. either of which are as Ger.
tain to prove profitable as an investment
in any other business.
One way is to purchase we'll developed,
paying mine, showing large ore reserves,
which can only be done by men of capital.
Another way is to furnish competent. reli-
able and experienced prospectors grub
stake to explore for and locate mineral
claims, then develop them; and another
was is for few men. say five, ten, fifteen
or twenty. to form syndicate among the m
selves. and purchase fairly we'll developed
mine with good showing of mineral. with
su55i;oundins an. and favorable surface
termined by some thoroughly practical
and competent mining engineer; the syndi-
cate then to form stock company among
themselves, elect their wn III .ers, business
full charge of the development Of the mine,
who should in all cases be thorough, prac-
tical and experienced miner. And yet an
other safe way is for q man with few
hundred or few Thousand dollars in cash
to purchase few Thousand shares, distrib-
uted among four or five different osmpanies,
With fair showings in the mines, say at 10,
ID or 20 cents per share. One of the five
companies is almost certain to develop into
paying mine. The investments, as a
whole, has proven profitable. and the in
ture.. Should two or more Of the mines
thus invested in prove valuable, which is
highly probable under good management,
SO much the better for the investor.
a And :. stu tho an noth, which We re-
mine with fair indications, with some de-
velopment and showing of mineral, with
option or privilege to purchase within say
slx, nine or twelve months at stated price,
This is q very safe and popular method, as
many mines are thus paid for from the ore
to mine, remove and sell the ore mined.
Sometimes royalty on the net receipts
will be required by the owners Of the prop
erty, and in other cases q small cash ad-
vance for the lease or privilege of working
the mine. When mine is leased or bond
ed, the lessee has the privilege (though not
compelled) of purchasing at any time dur
ing the life of the bond, by paying the
price agreed upon, and the terms specified
IN the option; while the lessor is compelled
to accept the price specified in the option,
ersta ne lessee see IT topurohase To illus
months, with privilege Of working, remov-
ing AID selling the ore therefrom. A agree
ing to pay b ID per cent royalty ON all net
returns from ore sold, with privilege Of
purchasing the mine at any TIM within
nine months, say for $4,000 1.-THE royalty Of
course when the purchase 10 made), MI.
pays b $500 or any amount agreed upon for
the option and lease. Mr.. A takes posees
sion Of the mine. begins work mining and
shipPinR and selling. ore. Within six
months MI. A has realized sufficient from
perhaps sufficient to pay the whole Of the
purchase price. He has made the mine
worm IN any market $4,000, 100000. Or
perhaps $4,000: Yet Mi. B lie compelled
to accept the $4,000. Should Nj. A
renders the fsase Which iS s' anRS! sur mr.
matter. as he (Mr. AZ is not compelled to
purchase the property. By this methnd M
has nine months in which to determine
the value, and whether he wants to pnr.
chase the mine from for $4,000. Nj. A
render the lease at any time during the
life Of the lease, should he zee at to do %.
This is very safe and popular plan to in
vest in mines, as all the investor risks is
simply the cost for labor. tools. etc., in
working the mine, and the small forfeit, il
any, which he may pay for the lease and
option. Many men are making fortunes
annually throughout the west by this plan.
The risk is small, with almost certainty
of success.
A few years ago the stock of the great
not find market at Is cents per share. vet |
this mine. has paid nearly $12, COO. GOO ia |
dividends during the past seven wears and |
its stock is worth S47 per share. The Cum
berland stock. at Castle, Mont. could have
been purchased eighteen months ago for II |
cents per share; it is now held at "a. One
year ago the Yellowstone stock. another
Castle mine, could not find market at l5
cents; it is now held at So per share. Hum
dreds OF instances of a similar kind might
be given from personal knowledge, but
those recited are sufficient to show that it
10 not impossible-in fact, highly probable /
that very many of the stocks which can
be bought to-day for 10, Is and u cents
per share will be worth as an investment
within one year 81 to $40 per share.
There are hundreds of mines owned and
still worked in the west which have made
the owners rich. and have still thousands
OF tons of ore in sight, and the books show
large monthly profits for years; and they
are rs safe to invest in as any other piece
OF real estate. and safer to figure ON. for
pronts. than any other business under
heaven. Some will say, .Oh, mine coeta
60 much money What if a mine does
cost $4,000 or 100000 or even 81 600 GOO
II they snow nearly double the amount
asked for them in plain sight? What
makes the difference? They are never AZ
fected by panics or droughts az in farming.
The product OF gold or silver mine 10 a!-
ways IN demand. All that gold and silver
mining needs to guarantees successes Il hon
eety on the surface, pRactical skilled and