The Sumpter miner. [volume] (Sumpter, Or.) 1899-1905, 1905-01-18
PROFITS UNDER
LEASING SYSTEM

to' suo yout yuSs CiOS0u UCIuR} TO
notice the important increment Of
net profit derived by the tributers
under the ever growing leasing
system. The new factor is one which
has not hitherto attracted attention
from the average student OF dividend
figures, but IL Is now 80 prominent that
1t demands far more. than q mere
superficial estimate In the compila.
tiOn Of net results. In times past It
has been deemed sufficient to deter.
mine the total gross output, aud
deduct therefrom the total expense
in equipment. labor, etc., a. II &C.
crues to- the direct owner OF the prop
critics, the result presenting the
amount available for dividends after
fived charges aud renewals have been
met. The net profits from q mining
enterprise are then computed strictly
from the point Of view Of the direct
owner, or the stockholder, where
the owner Is a corporation.
The introduction Of the leaseT re-
quires that not only shall bis tribute
be counted, but bis own individual
profit as we'll. In camp where the
leasing system Is predominant, as IN
Goldfleld or Cripple Creek, 1t be.
comes specially. important to take
this factor into consideration In the
computation OF the average percent
age OF profit. 1t adds much to the
statistician's labor, indeed, but It
furnishes all the more rsa on why
the statistican should know bis busi
ness. When the profit is divided
between the owner aud the leaser, II
is right that the same accuracy be
given to each increment Of net gain.
Aud this brings us to the really
interesting phase ut the matter
na,nely, not so much the money prof
1t derived from the industry as the
general social good incident to Its
operations. The average leaser 10
his own laborer. Where few men
are requirsu, be Is himself a plain
miner. and where greater number
IL employed be may be shift boss, a
superintendent or even q manager.
The formal wages which he allows to
himself would, under direct company
management. be charged up to labor
or salary expense aud be deducted
from the gross returns. II under
direct company management there
we're no gross output, these items
would bs regarded az losses, for the
time at least, aud perhaps uliti.
mately, for the owner does not. a.
a rule, hattsr himself at being able
to pay unproductive wages to large
force of men. The leaser. on the
other hand, Is sometimes satisfied II
he makes no more than wages aud he
IL not always dissatisfied with his
bargain IL he occasionally misses his
wages. for he is an ia dependent
operator with q chance OF big fortune
hell out to him. Moreover, 1t u the
experience Of great many camps
and individual enterprises that the
leaser will make more than wages
where the direct company manage
msut will run behind.
IL follows, th. refore, that under
the leasing system the labor item 10
not 80 much OF bug bear to the
small tributsr % 1t is to the owner
under direct management, even
under similar degrees OF success or
failure. The leaser, being q nearer
approach to the laborer, possesses
q desrsr appreciation OF the person
aiity of labor. In reckoning the
price OF mineral production, the
wages of miners may bs counted 40 an |