Custer weekly chronicle. [volume] (Custer City, S.D.) 1890-1931, 1893-10-28
Are Mining Investments Profitable.

A reader OF the United States Inves-
tor asks the editor of that paper the fol-
lowing question: Have mining invest
ments proved profitable as rule to the
investor as well as to the promoter"
The answer given is as follows: Legiti-
mate mining enterprises have proven as
uniformly profitable as investments in
o her lines. To find vein Of ore and
develop it into paying mine requires
that somebody take considerable risk;
for no one can actually prove the exist
ence Of a large and continuous body Of
ore without the expenditure Of consid
erable sum Of money in development
work. Thousands Of out groupings Of
ore have been found aud money spent
to ascertain whether the finder had
struck il rich or not. About half OF
these have proved to be mistakes Of
Judgment; the other half, perhaps,
proved to be veins Of varying value
some not rich enough to be worked
proftably-others moderately rich, and
still others exceptionally high grade and
very profitable to work. Those who are
inclined to be startled at this explana-
ton should recall the fact that 95 per
cent Of mercantile ventures are failures,
and in other kinds Of business the rec
ord Is not lar from il. An investment
made in fully developed mine, con-
tanning large bodies of profitable ore in
sight may be considered as safe as any
other form of investment, and usually
very profitable, if managed well. A
A person investing in a property not
developed, in other words q prospect,
ought TO know that he is taking some
risk. 1t may prove a good thing and it
may not so prove. If not willing to
take his chances he would better stay
out of it. 1t is not improper fer miner
who thinks he has found q good vein
to ask others TO put some money in
with him and take chances with him of
finding a paying mine, provided they
all 30 understand it. If such venture
prove Improbable, the investor, going
in with his eyes open, has no more
right to berate mining investments than
he has the miner who, perhaps. spent a
year Of valuable time prospecting The
only practice in connection with the
mining business which is not legitimate
is that in which a coterie Of schemers
take up prospect which may or may
not be of values and organize a company
Capitalized at one million dollars" and
sell all the stock they can to persons in
other states, with no intention of devsl-
oping the mine. Having cleaned up q
few thousand dollars from the sale of
stock, the enterprise drops. Some COM
psnies, as bait to buyers to put in
more money, manage to buy a dividend
for few months mot a legiti mate divi-
dend from the proceeds of the mine. for
there are none, but bogus dividend
from the sale of stock.
Investors in mining properties should
satisfy themselves that the management
is in honest hands and insist on eco.
nomical, intelligent work upon the
property. A property that is already
well developed and making big profits
comes high, because the risky point has
been passed. A partly developed prop.
erty as a mere prospect may not cost
much, but the risk and cost vary in the
inverse ratio. But mining has about il
fascination that makes people willing
to take risks in the hope of possible rich
returns.