Custer weekly chronicle. [volume] (Custer City, S.D.) 1890-1931, 1900-06-09
Are Mining Investments Proftablsp

ors: Haye mining investments proved
profitable an rule to the investor as
well as the promoter? The answer is
as follows:
Legitimate mining enterprises have
proven as uniformly profitable as invest
msnts in other lines. TO find a vein OF
ore and deyelop it into paying mine
requires that somebody take consider
able risk; for no one can actually prove
the existence of large and continu GUS
body of ore without the expenditure of
a considerable amount Of money in de.
yelopment work. Thousands of out
groupings of ore haye been found and
money spent to ascertain whether the
finder had struck 1t rich or not. About
half Of these have proved to be mis-
takes of judgment; the other half,
perhaps, proved to be veins Of varying
Wholesome not rich enough to be
worked profitably, others moderately
rich. and still others exceptionally high
grade and very profitable to work. Those
who are inclined to be startled at this
explanation should recall the fact that
95 per cent of merchantile ventures are
failures, and in other kinds of business
the record is not far from it. An invest
ment made in fully developed mine,
containing large bodies Of profitable ore
in sight, may be considered as safe
as any other form Of Investment, and
usually very profitable, if managed well.
A person investing in a property not
developed, in other words prospect,
ought to know that he is taking some
risk. 1t may prove good thing and it
may not so prove. If not willing to
take his chances he would better stay
out Of it. 1t is not improper for miner,
who thinks he has found good vein, to
ask others to put some money in with
him and take chances with him of find.
ing paying mine, provided they all so
understand it. If such a venture prove
Improbable, the investor, going in with
his eyes open, has no more right to be-
rate mining investments than has the
miner who, perhaps, spent a year OF
valuable time prospecting. The only
practice in connection with the mining
business which is not legitimate ia that
in which coterie Of schemers take up
prospect which may or may not be of
value, and organize company "capi-
talized at one million dollars" and sell
all the stock they can to persons in other
states with no intention Of developing
the mine. Having cleaned up a few
thousand dollars from the sale of stock.
the enterprise drops. Some companies,
as a bait to buyers to put in more money,
manage to pay d dividend for few
months-not legitimate dividend from
the proceeds Of the mine, for there ara
none but bogus dividend from the sale
of stock.
Investors in mining properties should
satisfy themselves that the man
agement is in honest hands and insist
on economical, intelligent work upon
the property. A property that is al
ready we'll developed and making big
profits comes high. because the risky
point has been passed. A partly dsvel-
oped property as q mere prospect may
not cost much, but the risk and cost
vary in the inverse ratio. But mining
has about 1t fascination that MAKE es
people willing to take risks in the hope
of possible rich returns"
The freedom from competition in gold
and silver mining gives an impetus and
advantage to this class of industry that
is not enjoyed in most any line ofmanu-
facture, trade or transportation. An
other feature is this, favorable to the
mining interests, is that the product ia
always marketable, as that gold and
silver bars can always be disposed of.
Many capitalists and investors haye
overlooked mining as source OF wealth
and field for investment simply because
they are unacquainted with mining
matters and mining business. In mod.
ern mining chances are reduced to the
minimum, and an element of chance
does not enter into the degree that the
newspaper and daily conversation would
warrant. Operation in mining can in
an anticipated way be placed and the
results estimated with nearly the pre-
cision Of building. In the past decade
oraot t;p,nroyau,anfu h va haan cooJa -,
the methods of mining and treating the
ore. A great change has been made by
the cheap and rapid transportation by
railways, by the reduction of expendi.
lures for labor and supplies and by I'M.
proved mining and milling. Men have
become practical miners from expert
ence, mill men and smslts RS have be-
come thoroughly acquainted with the
ore and minerals, and can therefore
handle them to greater advantage than
in former years. The success of mining
primarily rests on the mine itself. If a
good property is secured and the man.
agement be honest, competent and skill-
full, success is certain. The day of un-
successful experiments and losing Of in
vestmenfs in mining has gone by.
With skilled labor. a knowledge of the
ore deposits encountered. proper di-
rection and economy there need be no
loss. Investors are beginning to realize
that mining as an industry is strictly
legitimate, and under the proper man
agement gives large returns. With the
present system of mining in the Black