Daily camera. [volume] (Boulder, Colo.) 1891-1928, 1900-05-24
CHANCES IN ALASKA.
Mining Considered as a Mere Bust
ness Proposition.
Waste Of Health, Energy ana Money
Resultant from UnrsasOn-
ting Haste of Green
Gold seekers.


will take years in the finding, and the
population at present and to be indi-
Gates permanent white occupation of
the country, it is extremely pertinent
to inquire whether or not it is worth
while to try under the existing condi-
tions to get this gold," writes Warren
Cheney, in Ainslees. This is not so
easy question to decide as would ap-
pear. Most writer's on the subject
have been inclined to take pessimistic
view. The waste of health, energy and
money resultant from the unreasoning
haste of gold seekers, the rigorous con-
ditions of climate, the natural mac
feasibility 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 proportion Of
success to failure has been pitiably
small. 1t is probably large estimate
to allow that one in ten of the gross
number of the adventures has taken
as much out Of the mines as he put in.
This would seem to show conclusively
that mining in the Yukon does not pay.
But a careful consideration of the con-
ditions of the case will reveal that this
is not necessarily true. The general
argument against runs somewhat thus:
The output of gold from given camp
amounts to given figure for a given
time. A stated number of people has
been in the camp during this period.
1t has cost each one of these people
a certain sum for transportation, out
fit and maintenance during the time
allowed. Divide the total return by the
number of people and thus get the re-
turn per man. Compare this with the
cost per individual, and the result will
determine the question of gain or loss
1.-The individual cost in these in
stances was rightly reckoned at from
5000 to 1000. 1t will be seen readily
that the output of the camp must have
been fabulous even to have equaled the
aggregate of expense. The fallacy of
this method of reckoning lies in this
that it is not fair to measure against
the output of a camp the total expense
because the outfit of an individual cost
$1,000 at the beginning of the rush it
will continue to remain at this figure.
Again, as a matter of fact, the output
of the camp increases steadily as COM
pared with a fixed amount of labor be-
cause of the increased efficiency of that
labor through better understanding of
J. Ln ,,,y~
ton OF better methods.
I'm any business enterprise we expect
a large number of failures as mat
ter of course. The figures of the com
mercial agencies show that but one of
ten enterprises is carried to success.
AS cold-blooded business proposition.
therefore, Alaska mining is as good a
business venture as merchandising or
farming. What is more, the proportion
of success to failure in Alaska is really
greater than one to ten. 1t is estimated
that at Dawson only one in six of the
inhabitants is engaged in mining. The
five are carpentering, keeping saloon,
working for others, or waiting for
something to turn up. The failure or
success of the five shouldnot be included
in the miner account. 1t is evident tina.
with the smaller number to add items
to the expense account the ratio of ex-
pense to return would be materially
lessened in the miners favor.
Another fact against the statement
that the Alaska mines do not pay is
the shortness of the period on. which
estimates are based. No man in ordi
nary business expects to make profit
of 100 per cent. the first year on the
capital invested. Usually much long
er time elapses before profit is reached.
The conditions of mining in Alaska are
such that no man can expect a ma
terial return from his claim until he
has been in the country two years. AS
rule. it takes a year to learn to pros
pect and to find paying claim. This
accomplished, at least season must
De spent in developing and getting the
pay dirt into the dumps. At the be-
ginning of the second season the real
cleanup begins, and the miner finds
his ultimate return. 1t is obvious,
therefore,, that the returns from single
year-especially as the mines ave
been operated less than three vn-> al
together-are too incomplete to .snsti-
tute q correct basis of estimat
ILL