The San Francisco call., 1905-02-25

OAiOcT consideration IN COLORADO. Ac-
cording to the Mining World, the Col
orado State Geologist has suggested
10 the Governor of Colorado that
blanks shall be issued by the State
Geologist to mining companies, call
ing for comprehensive statements in
regard to property. development and
finances. The statement is not to be
compulsory. The World argues that
all legitimate mining companies would
be glad to take advantage Of the op-
portunity to be afforded through the
blank system to place themselves on
record, while persons who have been
invited to become investors will be
able to learn whether the company
that desires their capital has assumed
the proper attitude. Every investor
viii know what the States questions
are, and If any are unanswered it will
be possible for the investor to get
information why the needed answers
are withheld.
Wyoming has a law that makes it
the duty OF the State Geologist to re-
port upon the physical condition of
any mining property upon request on
the payment of a fee of $50 Fifty
four such examinations were made in
1904. Publicity" saiys the World,
is the best protection against swim
dies. When this publicity is made a
matter Of record the interested par
ties have reliable data upon which to
base their action
Another scheme for the protection
of the investor in mines has been pro-
posed in Colorado, which is summed
UP as follows:
L is proposed TO have the State examine
mining corporations as banks examined.
The promoters OF the plan urge that the State
bureau Of mines is responsible only for the
physical condition of the property and that it
has nothing 10 do with the financial status
OF he rfnr ar1fa Tr aIS
that there is no authority TO whom prospec-
tive investor may go TO ascertain the value of
any stock or the condition OF the financial af-
fairs of any mining company. The inspector or
examiner. according to the ideas of the men
back Of this new legislation, shall be ac-
cessible to visiting investors so far as advice
is concerned, and shall further have power to
satlsfy himself as TO the status OF any mining
he shall also be empowered,f satisfied that
any company is insolvent to prevent its re-
ceiving any money in exchange for stock.
VALUES IN DREDGING.
The charm of the modern method of
gold dredging for gold is the element
of certainty with which II may be de-
termined, before dredging is actually
begun, what rate of gold yield may be
confidently looked for in any given
tract. Frank W. Griffin has written
an article on gold dredging in which
he holds that the value of a property
can be ascertained to a practical GER
tainty before any money is spent for
work other than prospecting, whether
the property is paying.
Mr.. Griffin says that one hole to ten
acres is considered to DE close pros
pecting. Nevertheless, if ten holes are
sunk on a 100-acre tract, and the total
value Of the discoveries IN ten holes
be divided by ten, this result is taken
as an average value of the property.
In actual operations this is misleading
TO some extent for the reason that in
practice the dredge will produce but
60 to 20 per cent of the drill values as
shown by drill prospecting on this
basis. This does not imply that the
dredge will save but 20 per cent of the
gold, but 1t means that the average
value obtained from computing pros
pecting values is erroneous by about
80 per cent.
The United States Geological Sur
vey published report by c. W. Pur-
ington concerning the difficulties at
tending mining by reason of lack of
good roads in Alaska. The gold that
has been produced in the interior of
Alaska has been brought out under
great difficulties. Travel is not easy
during even the summer months.
During other seasons transportation is
very difficult. Purington says that the
conditions regarding roads in Alaska
are lnfSnarp contrast with the facts re-
lating to the Canadian Yukon. The
Canadian Government has constructed
good wagon roads in the Yukon and
has helped the prospector and settler
iii various ways. 1t is estimated by
Alfred H. Brooks, also of the United
States Geological Survey, that an ap-
preparation of s1,000,000 would build
900 miles of road in Alaska and would
thereby greatly aid In the develop
ment Of the territory.
Recent changes in China include the
passing of the control of mines and
railroads from the bureau of mines
and railroads. to the board of COM
merce. By this department some rules
and regulations have been promul-
gated. The general purpose of these
is that Chinese capital must predomi-
nate in all development enterprises.
At least so per cent of the capital,
where foreign assistance is sought,
must be Chinese money. Foreign COM
panies are not permitted to hold more
than 20 per cent of their own capital,
the remainder being reserved for the
Chinese. Mortgages cannot exceed 80
per cent Of the original cost Of the
erection Of a mining plant. The mort
gage can be made to cover only the
machinery and buildings and no lien
can be given on the land. The ex-
treme area for which a mining license
1ov he Ice &c