Gilpin observer., 1900-06-28
Grubstaking.


The validity of that form of pros
pecting contract known as grubstak-
ing has been repeatedly upheld by the
courts. The word itself has no double
meaning about it, and like most mining
terms, indicates exactly what is in
tended-viZ.: partnership between
those who furnish money and supplies
to him who is thus enabled to look for
and find mining prospects, each to
share in the profits or successes as
agreed. 1t isn't exactly partner
ship" it is sort of venture ar adven-
ture, where one furnishes the grub
and stakes the other who supplies the
sabe. Though the agreement is not
required to be written one, each par
ty to it justly expects the other to do
all that he agrees, and, usually, the re-
sponsibility ceases there. When the
prOspector locates Il mine comes the
question of tenancy in common, and
all its attendant rights and responsible
tiles. If during the time agreed upon
the prospector finds anything and To-
Gates it in his own name, his associate,
the one who grub-staked him, can
claim and enforce compliance with the
terms of the agreement. not on the bas-
is of a partnership. but according to
the terms of the contract. If during
the life of the contract the outfitter
fails to keep his part of bargain such
failure at once absolves the prospector
from further observance of its pro-
visions. And. at the same time, during
the life of the contract, either of the
two parties to it can buy or sell min
ing claims with his own money and at
his own risk without the other having
I,i TO, do, in nv We
All this applies to the grubstake, pure
and simple. That is about as far as
grubstake contract usually goes. If a
man is hired to get Il mine. and is paid
wages from the start, with Il promise
of raise in his pay or an interest in
what he may acquire. that is not
grubstake, and the relations between
the two are those of employer or EN-
ploye. Any agreement extending be-
yond discovery and location takes the
grubstake contract into different do
main, and makes it more of mining
partnership. So far as property rights
are concerned, in the ordinary grub
stake contract both parties are merely
tenants in common in whatever prop
erty may be acquired while the agree
ment was in force, and neither party
has the right to bind the interest of the
other
There isn't much style about grub
stalking, nor are there any frills on 1t;
it is homely proposition with plenty
Pof hard work and certain amount of
old-fashioned honesty and integrity
about it, n mutual risk in which each
party gives the other square deal,
and neither is supposed to be trying to
get the best of it. Some of the best
mining property in the United States
is the result of grubstaking n prospec-
tor, and in these days of scientific min
ing and metallurgy the prospector Is as
important n factor as ever, and grub
stalking may well be as favorably con-
sidered as ever it was. Grubstaking
is good investment to-day; 1t was al
ways n favorite form of procedure with
mine operators always on the lookout
for new properties, prospects suscept-
BILE of being made into mines-for
mines are made just as any other man.
ufacture-and deserves consideration.
Not every prospector is fit to be grub
staked; not every man prospector
would care to take grubstake from;
yet there are many prOspectors who,
backed by coin, could make the ven-
ture one of mutual prOfit.-Mining and
Scient fic Press.