The National tribune., 1900-04-12
CHANCES in ALASKA.
Mining Considered as a Cold -Blooded Busi-
ness Proposition.
Warren Cheney, in AiHstee's.

warren CheAfD, IN LathSeCS.
IT, then, there is gold in Alaska that will
take years in the finding. and the popula-
ton at present and to be indicates per
manent white occupation of the country
it is extremely pertinent TO inquire whether
or not it is worth while to try under the
existing conditions TO get this god. This
is not so easy.a question to decide as would
appear. Most writer's on the subject have
been inclined to tnke n peSsimistic view.
The waste of health, energy and money
resultant from the unrcaSonlng haste of
gold seekers, the rigorous conditions of
climate. the natural inaccessibility of
Alaska limiting the search TO the people
fitted TO undertake it, have all combined to
make prophets gloomy and advisers sour.
1t must be admitted. too, that the proper
| ton of success to failure has been pitiably
small. 1t is probably n large estimate to
| allow that one in 10 of the gross number of
the adventurous has taken as much out Of
| the mines rs he put in. This would seem
| to show conclusvcly that mining in the
Yukon does not pay. But u careful CON
| Sideration of the conditions OF the case will
reveal that this is not necessarily true.
| The general argument against runs some
what thus: The output Of gold from a
given camp amounts TO a given figure for
given time. A stated number of people
| has been in the camp during this period.
| 1t has cost each ono of these people Il certain
sum for transportation, outfit and main
tenaGce during the time allowed. Divide
the total return by the number of people
| and thus get the return per man. Com
pare this with the cost per Individual, and
the result will determine the question of
gain or loss.
The individual cost in these instances
was rightly reckoncd at from $500 TO 81 900.
II will be seen readily that the output Of the
camp must have been fabulous even to have
eJIli"l the aggregate of expense. The
failacv of this method OF reckoning lies in
! thiS-that it is not fair TO measure against
the output of :, camp the total expense of all
the people in j.. or 20 assume that because
the outfit of an Individual cost 81 900 ut the
| h"giHuing of the rush it will continue to
| remain At this figure. Again, as I! matter
of fact, the output of the camp increases
steadily as compared with fixed amount
| of labor because of the increased efficiency
! of that labor through better understanding
of conditions and through the introduction
| of better methods.
In any business enterprise We expect Il
| large number of failures as a matter Of
| course. The figures of the commercial
agencies show that but one of 10 enter
priseS is carried TO success. AS n cold
| blooded business proposition, therefore,
| Alaska mining is as good a business ven
turc rs merchandising or farming. What
Is more, lnS pfOpDTliDll Oh SUCCESS 10 l'llltTc
in Alaska is really greater than one to 10.
| 1t is estimated that at Dawson only one in
six of the inhabitants is engaged in mining.
| The five are carpentcring, keeping saloon,
working for others, or waiting for some
thing to turn up. The failure or success
of the five should not be included in the
miners account. 1t is evident that with
| the smaller number to add items to the
expense account the ratio Of expense 10
return would be materially le5sencd in the
miners favor.
Another fact against the statement that
the Alaska mines do not pay is the short
ness of the pcniod on which estimates are
based. No man III ordinary business cx-
poets to make q profit of 100 per cent. the
first year on the capital invested. Usually
a much longer time elapSHs before profit
is reached. The conditions of mining in
Alaska are such that no man can expect
material return from his claim until he has
been III the country two years. As Il rule,
it takes Il year To learn TO prospect and find
paying claim. This accomplished, at
least a season must be spent i'll developing
and getting the pay dirt into the dumps
At the beginning OF the second season the
real cleanup begins, and the miner finds
his ultimate return. 1t is obvious, there
FORE that the returns from n single year
especially as the mines have been operated
less than three years altogether. are too
incomplete to constitute Il correct basis of
estimate. -.-....3...