Gilpin observer., 1903-02-19
SOME CAUSES OF MINING FAILURES


and contains many truths and good
many valuable suggestions, and il some
of the investors in mines would take cog
nizance OF them, they would not be 30
ready to send novices to look after their
mines:
6ir.-It has been estimated that e5
per cent Of the commercial and industrial
enterprises which are started every year
ultimately prove Improbable. Such bus
mess failures are primarily due to incor-
rect estimation OF the trade conditions
which obtain IN every field OF CONNER
cial operation. These conditions are in
Vulnerable. intricate and constantly
, changing, but nearly all Of them are the
result Of merciless competition.
There is relatively less competition in
the business Of mining the precious met
ais. Yet even with competition largely
eliminated, do not believe that mining
enterprises have scored any less percent
age Of failures than the purely CONNER
Meal, with their increased attendant haz.
ards Of endless competition constantly
accelerated and intensified by cheaper
processes of manufacture and various
trade combinations.
In weighing these opposing conditions
it would appear as il the investor in
mining enterprises should have a better
run for his money" than statistics
would seem to indicate.
What are the causes OF unsuccessful
mining?
There are many causes, some Of which
might be eliminated il the Investor could
be shown them. Nearly everyone has at
some time bought thinning stock" or
"taken flyer" yet how many of those
whose investments have proven disaster
GUS have reinvested or "tried againY"
Their speculative fever subsidies after
the bleeding. AS result mining engine
ers are far less busy than they might be
and the development OF the mineral re-
sources Of various parts OF our country
is thereby much retarded. discussion
OF these conditions, their causes, and
their ultimate elimination would be
timely, and it might show many un-
successful investors the proper way to
try again.
After good many years Of activity in
1ee mining and metcallurgical field feel
that can mention few causes OF fail
nre OF mining enterprises and suggest a
few remedies. II by writing this intro
ductory letter and inviting the consider
alton Of this subject can induce some
SQf my fellow workers to grasp their pens
and express their ideas, l believe that
the investing public might profit from
the discussion.
Don't invest money on the strength OF
a printed prospectus or the advice of an
interested friend" without preliminary
investigation by reliable engineer.
Don't stake a flyer" in mining, but in
vest your money with the same care and
discretion you would use in buying bank
stocks, real estate or silk factory.
Don't trust altogether to luck. Use a
little sound business sense.
guarantees dividends. Dame nature has
something to say about that.
Don't invest in mining company that
is selling treasury stock and paying div
idends at the same time. II the mine is
earning dividends the company owning it
seldom has legitimate interest in sell.
ing more stock.
Unless you have had sufficient exper-
ieyte as mining. engineer and metall-
6rgist, and the amount OF your contem-
plated investment is uncomfortable, em.
ploy reliable experienced engineer to
report on the property. Don't do this
yourself unless you are born eternally
lucky. Every man to his trade.
Nnce you have invested in a mining
enterprise insist on frequent and com.
plete reports covering operations at the
mine. Employ competent superintent.
end.
Don't take your son OF your nephew.or
your clerk out OF your store or business
house and send him to Arizona or Colo.
RADIO to run things" for. you at the mine.
Sell out first.
Once you are assured OF their qualifl.
cations put every reasonable confidence
in your manager and superint ntendent
Give them fair show TO make divi-
dend payer Of your mining investment
II you are director In mining COM
pany do not force the manager or super.
intendent to find job for all OF your un.
successful friends and relatives. Let him
hire his own men. Don't convert your
mining property into an asylum for
'ne er.do- wells"
Don't spend all OF your capital on top