Morning appeal. [volume] (Carson City, Nev.) 1877-1906, 1905-10-10
THE LAW OF cRUssTAkE.
Rights of the Prospetor Under the
Decision of the Courts.

Rights of the Prospetor Under the
Decision Of the Courts.
j. B. Marshall contributes the fol-
lowing to the Beatty Bullfrog Miner:
In accordance with yom request
give you herewith an outline of the
relation between Prospector and
"grubstaker' from legal standpoint.
Much litigation has grown out Of
contracts of this character, owing to
the loose manner in which they are
generally undertaken, and the strong
inducements to shirk their obligations
after a valuable discovery has been
made-see Murley VS.. Ennis-12 M.
R. $50; tombstone VS.. Robinson, ID.
800.
The legal status of the prospecto-
and the party furnishing him with his
outfit, commonly called "grubstake"
is simply that of partnership on the
same footing as partnership in any
ether kind of business, nothing more,
nothing less, The "grubstaker" con-
tributes the capital, to balance which
the prospector contributes his labor
time and supposed experience as 4
/ searcher for valuable minerals See
/ Lawrence VS. Robinson, II NJ r. 3S9;
! Abbott VS.. Smith Col. App. 265.
AS to what share either party shall
have in the discovery, and the time
for which the partnership shall last
depends entirely upon the contract or
understanding between the parties
/ There appears to be a prevailing idea
that where party "grubstakes'' an.
! other the unfortunate prospector is
obliged to locate him in any discovery
which he may afterwards make; IN
other words that he is bound unto his
1 'grubstaker" for the balance of his
natural life. One does not need to
be learned in the law to readily see
the preposterous folly of such propo-
sition. Suppose in the year 1900 a
party furnishes a prospector with a
'grubstake'' amounting to $500 or
$1,000 as the case might be and that
in 1905, long after his grubstake has
been exhausted, the prospector should
make a valuable discovery, would the
'grubstaker' be entitled to a share
in this discovery? Most certainly he
| would not.
I The partnership would last so long
as the ''grubstaker'' contributes his
| part, and no longer When a pros
/ pector makes a valuable discovery
: there are always plenty of people
: ready to claim share in it, whethe:
;; there is any foundation in their Claim
!. or not. Such has been the history 81
: mine litigation at all Of the most i'm
More than half of the suits which
have been brought against mine own
ers at Butte, Cripple Creek, Leadville
ETC., have been absolutely withou'
merit or foundation Of any kind: the.
are simply an attempt at blackmai
t. through the medium of the courts
i The shyster lawyer, always largel.
d in evidence will commence suit o
j. this character, hoping that the min
owner will buy him off rather tha'
!, be harrassed by litigation; if he get
anything he and mis- client divide
if he looses he is out nothing exec, !,
: little of his valuable time. tn
: policy of most mine owners and cap
talists nowadays is to fight all suit
Ie of this character and beat them /;
n whatever cost.
A simple and easy way to olivia.
a great many of the troubles ind
!. atced is for the prospector to hav
distinct contract with his outfitter
N IN most OF the mining states a col
tract of this kind not being With
the statute Of frauds, is valid an
binding, although not reduced to wri
il ing, showing the amount contribute
the intention of the parties and whe
the partnership is to terminate, is ]
that is necessary