The Marble times and Crystal silver lance., 1901-03-01
THE LEASING SYSTEM.


share has not always been commensur-
ate with the effort and expense. The
system of leasing deserves commend
alton; where from inability or other
reasons the owner of the ground Is
unable or unwilling to work it, the
lessee offers usually good opportunity
to demonstrate its value. Many leases
are expiring in Colorado and else
where, and business justice to lessees,
as we'll as a wise system OF mutual CO.
oper alton, which results eventually in
mutual profit, would suggest that a
fair division of profit be accorded the
lessee. Often he takes all the risk OF
loss: does most or all OF the work,
and, where successful, the owner OF the
claim or the mining company as often
gets the biggest share: but in case OF
failure the loss falls mostly upon him.
Few fortunes are made by lessees,
though in the majority of cases moder-
ate money has been realized by intel
ligent effort and diligent prosecution
of work. The most of such money has
been made by the claim owners or min
ing companies, many of the latter hav-
ing reverted to the system of leasing
their properties after having tried
themselves to make success.
A high rate ofroy alties works against
vrit nj f.
able lease, if nearly all his profits have
to go to the property owner in royal
ties there is little inducement for con-
tinuance. He may be able to stand OFT
railroads and hold things even with
the smelters, but with high royalty
there is seldom sufficient or favorable
opportunity for systematic and ex-
tended working that would result in
common profit to all. Another thing
that would help the lessee would be ID
longer period for which leases were
granted. There is rarely objection on
the part of those who leases their
properties, so long as they are unpro-
ductive. to have the lessees diligently
develop them, objection to continuance
sometimes arising when they have de-
to do in connection with such general
suggestion of extension of the time for
which leases are ordinarily made would
be to date those leases from the time
of the first shipment of ore. 1t is bad
to attempt to make too hard bargain
with anybody: it is not business to
trade upon anyone's necessities in
causing him to do that which by force
of circumstances he may have been led
to do.
The relation of this whole system OF
leasing to the development of the min
ly manifest to Justify notice. Usually
property that is being worked under
lease is economically managed. Ot
course it is not advised nor would
any intelligent mine owner consider ii
good business-to turn his property
over to leasers. but in many Il case
where opened properties have beer
abandoned by the owner, or by the
company, because of the lack of money
for himself and the claim owner where
previously everything lay idle, and il
making that money-as also as in al
cases where mining is going on-he
makes times lively for the surround
ing vicinity to the extent of product
ion. for every miner employed gives
employment to ten others who are no
miners, but who share in the created
wealth. And the lessees are usual,
not content with even that, but wher
they have made little money the!
generally use it in opening up othe1
abandoned properties, or in develop
ing new territory, and in this case the,
constitute just the kind of capital need
ed in the mining business-intelligen
mining with the gambling element lief
out of il: mining by men who know
what they are doing and have nerve
enough to put their money into mining
operations that take nothing from an,
one but benefit in common, with al
the local advantages that such condi
ton confers.
II is not uncommon to look to East
ern capital and ''foreign investors
for money necessary for development
Both sources of mining capital ar
commendable and welcome, but i
sometimes occurs that in looking too
far ahead for the necessary element
of developing, an important factor il
the problem may be overlooked, tina
is the lessee. This is not plea no
an argument for the lessee who is usu
ally able to take care OF himself, ant
is merely intended to indicate in wha
direction mutual aid and profit ma,