The Redwood gazette. [volume] (Redwood Falls, Minn.) 1873-1940, 1896-02-06
ENGINEER H0XIE WRITES
He Contributes an Interesting
Letter on the Alleged
Gold Mine.
Mr.. Hoxie Gives an Idea of What
the Company Might DO
Hereafter.

During the year past tnls coillllun-
ity has from time to time had pre-
sented for it's consideration the ques-
ton as to whether gold existed in the
river valley or not, mas
much as reported find seemingly failed
to materalize. The Minnesota Gold
Il Refining Company, after ex-
pending some capital in this direction,
found themselves in similar position,
by reason of results obtained from
their property. Suspension OF opera
tions followed during which time the
services of the writer was secured, to
direct the operation at the mine. Early
in the month of December, 1895, l
visited the property, looking over the
situation carefully, and upon return
ing to Minneapolis, in conference with
the company stated to them, that it
appeared to me to be low grade
proposition OF doubtful value. Al
though somewhat discouraged by rea-
son of results previously obtained.hav-
ing satisfied themselves of nay stand
ing among the profession of mining
engineers, desired me to give the
property trial. The company as
sured me they held options from land
owners on the "lode" line, for con-
siderable area of territory and were
not confined in their operation, to the
particular point upon which their
works we're located.
Upon this statement 1 decided to
give the property trial, but no soon
or did I begin active operations, than
parties owning lands on "lode' line,
refused to deal with the company ex-
cept upon terms, so in excess OF the
prospective value of the lode, that l
advised the company to suspend and
abandon the enterprise. It is to be
regretted that such a policy should
have been adopted by land owners,
and I can only attribute it to want
of information upon the subject of
the mining industry. This company
we're not directing the search for gold
from purely disinterested motives.
They hoped to develop an industry
profitable to themselve and to the
community. They realized that in the
event of finding mine that would
yield a small margin of profit, meant
an investment of $lOO, 900 for explora-
tions and plant, while to carry on the
work, provide for maintenance of
plant meant an expenditure of from
$4,000 to $4,000 monthly. Surely
an industry of such proportions would
hardly be considered detrimental to
the community in which it was
operated.
Investors placing capital in gold
mining enterprises have the right to,
and should expect larger interest up
on their investment, than in any pure
ly commercial undertaking, owing to
the fact that it is highly speculative
venture, and only those who have had
experience in this class of investments
can fully realize the fact. The prop
erty of this company being of doubt
full value and the manifest antipathy
of land owners on "lode' line places
the proposition at once on the list
of extremely doubtful investments.
Could the company have acquired the
right to prospect the lode upon terms
deemed to be in proportion to it's pros
pective value which is the only value
it has the work would have been
prosecuted and the much discussed
question "does gold exist in the Min
nesota river valley in quantity suf-
ficient to justify working" would have
been forever set at rest. Proven gold
fields in the United States, Transvaal,
South Africa, Australia and elsewhere
are continually Offering inducements
to investors of such nature as to