Custer weekly chronicle. [volume] (Custer City, S.D.) 1890-1931, 1897-07-17
A. WORD TO INVESTORS.

OF strikes, and when everything seems
in transitory state, the greatest care
and consideration ia paid to the one
question OF permanence and safety. In
the years past, mining has been re-
garded by those not familiar with the
conditions which govern the industry,
as among the most precarious and un-
certain, of all the enterprises which
offer themf elves as sources Of profit. II
it not so today, and has not really been
SO at any time, but from a misappre-
hension of the different phases of the
business, on the part of those who had
the money, but had not the necessary
mining knowledge to guide them in the
question Of how and where to invest
their funds intelligently and safely. In
this connection it is proper to say, that
there are at least three different propo
sitions to be considered, and three
different plans Of procedure.
lst investments in deveveloped
mine.
3rd, investments in stocks.
1t is obvious that the first proposition
gives the greatest security, as it best
answers the question Of permanence, Of
ore body, and character ore. But such
mines command high pice, and it is
right that the price should be governed
and determined by the degree in which
the element of risk is eliminated.
1t is easy TO show where in an invest
ment in a developed mine is safer and
offers greater inducements than any of
the other enterprises which are brought
to the attention of would be investors.
There are manv reasons why this is so
out, among which We will mention tie
following.
First, we will suppose we have a vein
in which two shafts have been sunk,
each to the depth Of 100 feet, and if the
vein is large one, we will suppose it
has been cross-cut from wall to wall.
Into these shafts Jour expert enters (for
you should always employ an expert in
case you do not understand it YOURSELF.
He makes his examintion, takes his
samples from every part Of those shafts
from top to bottom. Next he tests them
thoroughly by the different processes
to ascertain which is best adopted to
the treatment of that particular char
acter Of ore. cost Of treatment and all
other things carefully considered.
Now he can sit down and figure first
the number of cubic teet in the vein
between those two shafts ascertain what
it weighs and get it into tons. Figure
the cost Of mining, cost of plant. Of such
is contsmplated) or if not figure the cost
of transportation to reduction plant, cost
Of treatment leave out nothing for every
thing can be figured TO fraction. Now
figure on what the block Of ore will
yield when reduced. That is what is
called ore in sight and you make your
calculations on nothing but what is in
sight. Now, if that block Of ore will
yield enough after it is reduced to pay
for the mine, you are ready to draw
your check for the amount asked, per-
fectly regardless of what that amount is.
We say it cuts no figure what you may
be required to pay for such a mine, for
you are buying money in the raw state
which your capital is to convert into
coin. You have dead sure thing. 1t
is surer than farming, for you run no
risk of fire or food or frost, AID the
army worm and festive grasshopper
need not disturb your slumber. 1t is
safer than merchandising, for there is
no danger of goods being damaged in
transit, no delinquent debtors, no de-
precation Of the product. for coined or
uncoined, il is standard money, and you
never need seek market for your pro-
duct. This is the favorite class Of min.
ing investments for syndicates and men
of large means.
But our prospecters are not able lex.
cept in rare instances) to put their
mines In that shape without outside
assistance, and here is the chance for
men Of smaller means to get valuable
mine for small money, or as is often
done, acquire quarter or half interest
in promising prospect in consideration
Of doing certain amount of develop
ment work on the property. In the
latter case, If the mine on development
proves good, and is a smelling PROPOSE
tion, they can commence shipment i'm
mediately, and soon get their money
back. The mine is growing in value
every day, and will soon be sought and
bought by large company. Now, as
to which class of investments offers the
greater inducements it is hard to say,
for the first is sure thing, and the
surety comes high, while the second
presents more of the elements of risk
yet costs comparatively 80 little that
there is no doubt that the prospect on
an average has proved far the most
profitable to the investor. 1t is in the
prospect where the greatest skill and
judgment is brought into requisition,
and this must be founded on experience.
Your graduate of school of mines is all
right, and what he has learned is useful
to him. He is fairly we'll qualified to
examine and report intelligently on q
developed mine, while, without ex-
perience, his report on prospect would
be almost yalueless. 1t 10 often re
marked land there is no doubt some
truth in it) that an ordinary assayer
knows about as much about q prospect
as q prospector knows about assaying,
which, as general rule, amounts to but
very little.
In mining CONTRARY to the general
impressions Of eastern investors who |
put their money In mines,) there are
many departments, and to this it is well |
to give heed. Seven out of ten men
who work all their lives in mines and |
are skilled in their work with hammer
and drill, pick and shovel, are never
the-lsss entirely lost when il comes to |