The herald., 1898-08-17
FOREIGN MINE BUYERS
GOOD ADVICE FROM THE BRITISH
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OFFICE OF THE HERALD.

$50. OFFICE OF THE HERALD,
LOS ANGELES. Aug. IS. 1898.
From San Francisco Wellesley Moore, this
British vice consul and charge d'afrairs,
gives the following advice to foreign mine
buyers:
1.-THE history Of the majority of British
mining investments In California has been
one OF misfortune, attributable largely TO
unbusfnesslke methods in acquiring or
working the properties, and to other
causes, the principal ones Of which may be
enumerated as follows:
Investing In mines that are fully devel-
oped and on dividend-paying ba sis. While
such properties are, of course. very desir-
able when they can be procured at rea-
sonable figure and are not worked out, they
require a large amount Of capital, as the
owners are naturally loath TO part with
them. except at very high figure, and there
Is a considerable risk that the mine has
seen its best days. Partially developed
mines which can be acquired under the
bonding system at a small outlay afford
much safer field to operate In as only sur
f1cent capital Is required 10 open UP. the
property, and If II fails TO justify expecta-
lions, work can be abandoned at any time
at small loss.
an neglecting to have properties thor
oughiy examined by competent and indie
pendent experts before closing the bargain.
One instance OF this came to my notice
where q glib talker went to England ana
LA IN min n n
Of capitalists who took no steps 10 have 1t
examined on their own behalf. Needless 20
say that the property turned out to be ut
terly worthless. and that after sinking
considerable money in the concern they
threw II up in disgust In this connection
/ would say that the first and most import
ant step that can be taken is to have mine
thoroughly examined by independent ex-
perts, and that experience has shown the
wisdom Of depending for advice in mining
matters in California upon men VINO have
a practical knowledge of the geological
formation of the mineral deposits In the
different districts of the state. 1t has been
found safer to trust to their opinions, as
conditions here are different from those
encountered in other parts of the world,
and have frequently misled men Of repu-
tation sent here as experts, who would
probably be safe and competent authorities
in the countries in which they had acquired
experience.
'In sending out men to manage mining
properties who have had no practical ex-
perience in the business, cases have occur
red where expensive mills have been erect
ed before a mine has been sufficiently de-
veloped to ascertain whether there was sur
flcent ore in sight to warrant such course,
and mills that have been so erected and
scarcely put to any use have been sold for
less than one-quarter of their cost
probably the greatest cause of the dis
aster OF British mining investments Is over
capitalization of such concerns by London
promoters. Only recently attention has
teen called to an attempt to float group
of California mines in London for E2y0 ,O00,
which was bonded here by the promoters
for less than 100000. The property had
some merit as a low grade ore proposition,
and would have probably proved a profit
able investment If capitalized In accordance
with its present appearances, and under an
honest and capable management. Such
schemes as this work incalculable injury
to the mining interests of California. Al
most all the successful and profitable mines
of this state have been worked either by
individuals or by close corporations in the
same careful spirit Of commonsense and
economy that prevails in large manufac-
turing concern"