The Seattle post-intelligencer. [volume] (Seattle, Wash. Terr. [Wash.]) 1888-1914, 1896-11-22

1C&tNo8 -, .o8&.S~-
The report % a good expert on q mining
ysrvr<-sy res1ces It's rurchase 20 q cold
Ssno-s-a business proposition Develop
.rs-ss According 20 . plan outlined VII cos:
20 rrssrn ard VII give 50 much ere IN
ssxrr-shas -. Stocked oat ready for stop
srx-rrsrsr viii average 20 much Ia value.
Of thss. so uzzch day car Be produced: 10
ressce e On the ground would require GER
tain machinery al certain cost and wogd
cost 80 much per TOT. 20 ship II to the
snaif@- would cost 80 mach for frssgh. and
treatment. With fhis information. -ae In
weston can calculate Tor himself whether
the szT-a required IL within his means and
WHISTLER the profit X VIII yiesd y SUFFICIENT
10 ,usztfy .Aa risk II &c tries 10 save
money At tie cestset by not employing an
expert ne is IN danger % buytng . worth
lsss-po<sfbiy saifed-cizln,. or es paying
TOO nluch for fairly good one. % ceves-
cpsng e IN tire wro.x way: Of emitting
so.rss important element IN the ejaculation
OF COS. Of producing ore Or bullion. By
which his profit would 20 beyond he var
tshsrT point and become loss. % putting
In IRE wrong kind os reduction plart Thss
q course ~ hasess on ehe assumption tina.
re himself Is no. sufficiently skilled in
mining 20 rely or his own susx-nen. IN all
these particulars II he Is nor and his ven
ture goes wrong. ne viii probably abandon
It IN disgust and say that mining Is a gam
bic anyway and ne VIII have no more 70
do with X. The fault was rot really IN the
mining business. but In his OWE uabusi-
rssslIks way % engaging n IL
Methods Of Making Deals
Tire most common way OF purchasing
mining properly for development - for the
owner 80 place deed n escrow and 20
give the purchaser bond for its delivery
within a certain time. usually from three
20 twelve months. upon the performance of
certain conditions. Usually a small pro-
portion OF the purchase price IL paid az
she time the contract Is made and the
further instruments ara payable at stated
periods, the final payment being made and
the deed delivered n the expiration Of the
term or the bond. Upon failure 70 make
any payment. the bond Is forfeited Many
claims are bonded upon a small cash pay
ment and the performance Of a certain
amount % development work within q
stated period six months 20 year, while
come prospectors are willing 10 waive any
claim for cash down IL they can get the
prospect developed 70 certain point In
return for q half interest. In case OF for
feiture OF q bond. the purchaser Loses al
interest In the claim and in any uIachin-
cry and other improvements he may have
put upon Il, bonds requiring that machsn-
cry shall he erected on the mine ground
II Is often required that. in case any ore 10
shipped during the term Of bond. certain
proportions OF the proceeds shall be paid
on account OF the purchase price. This
Is to prevent q man from quitting valua-
bic claim, pocketinG the profits and throw
ing II up when the time comes to make
payment The long period OF depression
has materially reduced prospectors' estl-
mates Of the value OF their claims and
they have been willing this year TO accept
reasonable terms. Some, however while
extremely moderate as long as nobody il
offering TO buy. put UP their prices out OF
reach when q wonld-be buyer shows him.
self. This is to be expected In class OF
men whose bump OF optimism Is abnor-
maliy developed.
Having bonded a prospect. the investor,
X man OF small means, will probably
associate few others with himself. incor-
porate . company TO which he transfers
the bond and set aside a certain proper
ton OF the stock In the treasury. usually
one-ffth TO one-third OF the whole. This
treasury stock IL placed on the market
in blocks from time 20 time at a certain
price and sold 10 the general public. .
condition being that the proceeds are TO
be expended IN developing and paying for
the property. In many instances the orig
1850 o"HSfS eAs6h8c ~ Rive SOIHe DIQkcf
q certain number Of shares on condition
that he viii incorporate a company and
market the stock, the owners taking a
proportion Of the stock In payment for
Their claims. Prospectors often express
opposition to this plan Of operation for
they have a morbid dread OF being frozen
out by inscriptions spectators, or that
the stock may not prove salab!e and that
the corporation may then remain as an
bH ~.
their claims. They would rather stay out
OF the company and let It's sponsors take
the chances OF whether the stock proves
salabie. The writer encountered several
cases where claims are tied I'D in the hands
or companies which cannot do anything
themselves and prevent anybody else from
doing anything. In other cases owners Of
partial interests IN mining claims had re-
fused TO join in organizing companies
which thus held only two-thirds or three
fourths OK the property. INCORPORATION
however. Is the most convenient means 10
develop property requiring large CAPITA,
oy bringing together the small Investments
or a large number OF persons The ohtec-
tion 10 TX is that II opens the way for sna.~-
ulafors 10 put property on the marke. a.
an exorn'tant capitalization. and AZ o,,a,
the method by which utterly vo-.hisu.
prospects are unioaded on the nublir A.
.ne purchasers OF mining stocks usually
invest only small sums. they do no. c,y.
slider IL worth while TO fnyes-,va., -
property In question and the parents -
me corporation. relying upon this Fat
Eataer n q number OF small ar,n,r..
whien IN the aggregate give them nr,.e a
pToat on their venture The o,,y 80,
guard IL 10 buy stock in none hut nrona-
Ties OF known value. incorporated bv me-,
whose names are guarantee against
\ -
methods. o4S
Methods OF Development.
The cheapest and bes. way 70 aevs,on :.
mine, II the nature Of the sroun5 ss-ss+~
o. u. Is by tunnel. for 1, requires no
suls.'hg machinery and gives natural
drainage, as well as natural ya,.sr..fa,
Tor some distance IN. One can ,,susIi,, ,,a-
pend On pure air in strairh. .u,rs, ~ao
feet long and there is no rea, sa,re- ,-a,,
foui afr, for the fame OF a causlS xtrrs e..
ana DIES in II. thus .nfaiIihfv be--a>-s-, .. .
presence. Ma1y mines are operes NJ a
tunnel cut through the country roct -
strike the ledge n right angles "a a..
course and from this drifts 80 -, -
right and left on the ledge ~
however many Objections 70 this 49, =.
operation. The tunnel through cor,..~,.
rock : al dead work. nothing ha.~. 80.
oat which viii help 10 pay for n yyo~--
ever carefully you calculate the distance
rom inc surface at wh,ch the Issra rvsJY
Ne struck. ycG can never be s,gra 49,, 80
You have to SO. unless n good So, :.
lro- pectIng has been done al the ss.r.
osp,h' Tor a ledge i likely 10 change IS
p'ign IN following the .rrextIiar1-5Ss - :
assure IN The country rock Goal ,.t-,s~ :
engineers say that e Is alwsvs bes. -
sss wiz the ledge, FOR then The .,,,-s,
vi ~ least help 70 pay for Itself s,s ,,.,,
p'9eae> Gre enough 70 pay it, entira ~ns..
moreover such tunnel can ha rn,,ss -