The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1898-11-09
CAPITAL IN MINING.
How Eastern Investors Look Upon
the Industry.

low eastern investors Look Upon
the Industry.
In commenting upon the methods
necessary to induce eastern capital to
invest in mining enterprises in the west
the Mining World of Butte says:
Desiring to feel the pulse of the east
ern money market for mining invest
Ulents, we recently wrote one of the
most prominent mining promoters of
the east, requesting him to give us
the facts as they appeared to him.
While there is considerable inquiries
for mining properties just now, we
fail to record many sales as being
made to eastern men of means. Thus
we were under the impression that
something was wrong, and took this
means to ascertain, if possible, where
the trouble lies.
The letter in answer to our inquiry
is as follows:
Editor Western Mining World:
Your letter in regard to mining in
Vestments by eastern people is at hand
and L hasten to state that there is
plenty OF money in the eastern finan-
cial centers for legitimate, honest min
ing propositions, but none at all for
"hurrah" deals and wildcat schemes,
and the sooner western mining pro-
motors" recognize this fact the better
It viii be for the mine owner as well
as the broker.
The elements necessary to the sue
cessful handling of q mining enter
prise are a good property that will
stand careful investigation; the price
must be such as TO be tempting and
there must be ample time given for in
spection and examination of the prop
ertS- However easy il might have
once been TO dispose Of prospects for
fabulous sums, that day has gone, and
ii can not be done now. Eastern in
EestOrs are more enlightened every
day on mining matters. and While they
are willing to invest. they are not going
10 invest without they are getting a
good thing for their money, and that,
too, after they have had plenty of time
to investigate the matter thoroughly.
The business of enlisting eastern
capital in mining enterprises is a legiti-
mate business, a perfectly honorable
business, and a most necessary one to
enable the prospector to dispose of
his prospects. But it must be con-
Quoted honestly and honorably, to be
successful, and, truth to say, it is be-
ing so conducted today more than ever
before.
The most serious obstacle to the sue
cessful handling and sale Of mining
properties today is the prospect and
mine owner. They frequently have no
fair conception Of values, and are gen
orally in too much of a hurry, and
won't give either the broker or the
buyer time to investigate. The result
is that many a good looking prospect
lies undeveloped from year to year,
and many a good camp is held back
until il gets a bad name, and it finally
becomes almost impossible to get any
one to even look into its merits.
Prospectors should remember that it
costs a promoter about $500 to 81 600 to
go east, stay month or two and at
tempt TO interest capital. 1t can't be
done in a minute. Eastern men are
not sitting in idleness waiting for the
promoter to come. They are busy
men. and frequently one is put off
from day to day for a month before an
interview is granted. Then the ex-
penseS Of an expert to examine the
property must be guaranteed generally.
and by the time an agreement is reach
ed, even under most favorable condi-
tions, a month or six weeks has gone
by. And every interview does not re-
suit in q sale by any means. Should
you fail to properly impress the pros
pective investor your whole month is
lost. Should your property not be
what is wanted-and il seldom is
then your time is lost and you must
begin all over again on a new tact.
Should preliminaries progress salts
factorily and an expert be sent to look
at the mine, your troubles have only
Just begun. He may report favorably.
but the chances are about four out of
five that he viii report adversely.
This is because he is free from en-
thusiasn, and does not see things as
rosy as the promoter and prospector
do In such cases. the, promoter must
bprin all over again.
To sum It ali up, prospectors ard
promoters must not expect to sell q
worthless prospect at all. They must
carry on strictly legitimate business,
give ample time for Investigations,
make prices commensurate with