Omaha daily bee. (Omaha [Neb.]) 187?-1922, 1905-10-21
Big Increase in Gold.

These figures show an increase Of about
S22, 100000 in gold over the bureaus esti-
mate for the calendar year 1903. The United
States shows gain of about $70000OO and
South Africa Of $1SOOO,O0O. The director says
that both of these countries are still upon a
rising scale Of production. Australia, on
the other hand. is an important producer
which shows a tendency to reduce its con-
tribuuons although the falling off is not
large and may be temporary. Considering
developments in well known fields it seems
a reasonable forecast to expect the worlds
output in 1905 to exceed that of 1904 by $25,-
O00, ,00O with another gain probable in 1906
In view of current discussion upon the in
fiuence of the increasing gold supplies upon
commodity prices and wages the bureau has
been at some pains to collect data to show
the influence Of higher costs upon the gold
mining industry itself. The director says:
Asspp;ng that new supplies of gold should
ceir1e utoIt the markets SO much faster than
they can be absorbed in the natural expan-
sion of business that a new relation Is
forced between gold and commodities, Of
course the costs OF gold production would
rise The mine owner would have to give
more of his product in exchange for the
! labor and supplies required to operate his
/ property. The effect of rising costs upon
! the production of gold would depend upon
the marginal profits Of the industry, which
vary with almost every mine. In every
mining district there are mines producing at
! good profits. mines producing at small
profits, mines barely payi1g expenses and
! mines operating at a loss, but with the hope
/ that they will do better. Every Increase in
/ cost would submerge the latter more deeply
| and add to the list of the unprohtable and
| close some of them.
Cost of Mining Decreases.
The conclusion reached is that although
some items OF mining costs have increased,
| the tendency on the whole is still down
ward improvements In mechanical ap-
! pliances and metallurgical methods have so
far more than Offset the influences making
for higher costs"
| The report says:
The most important gold field in the world
! is that of the Transvaal. and for that the
data for working costs and profits is quite
incomplete. Their working prohts, after
paying the 10 per cent tax on profits to the
government, are reported at $26 402, ,163. The
amount actually divided in dividends was
SIS, ia 7S4.70. Only thirty-tve companies paid
dividends, those & Produeitns t 70 per cent o Oh
ton of rock handled was practically the
same as in 1898. -
West Australia produced in 1903 $42 6s5. .226
In sold, OF which Sc per cent was by twenty
four reporting companies and these COM
panes paid in dividends 1888 81, or IS per
cent of their products, In 1904 the total
Weld Of all Australasia was $s6,SOOS25, and
the dividends by listed companies amounted
would be considerably Increased If the net
could be added The tendency or costs is
reported as still downward.
The gold field of India is one Of small
area with few large producers. Its yield
ducing about 100000 of this, paid divi-
dends amounting to about 100000.
Mining In United states.
In the United States the conditions vary
widely with districts and mines and it is
difficult to give any figures for costs and
profts of general significance.
The Homestake mine in the Black Hills
has produced $50, 100000 and paid $4,000 OOl
in dividends. The Treadwell mine, a great
producer of extremely low grade ores has
realized about 40 per cent OF its product
in profits. The Cripple Creek district has
been estimated by the Engineering and
Mining Journal and the Colorado Springs
I Mining Stock association. TO have produced
sl3o. zoo to January l, 1906. These figures
include the estimate of the state bureau
OF mines since they have become availa,
bic in 1897. The Mining Investor gives
the amount paid in publicly announced
dividends by incorporated companies. a,
approximately $35OOo.OOO, and says thi,
/, would be materially increa sed by the
profits of individual operators and leasers
, In ali fields an important percentage OF
the output has come from properties tha
have not yielded a profit, and large ex
penditures have been made in prospecting
which have never yielded any returns \
striking demonstration Of this willingness
10 spend money in hunting for the precious
metals is shown by the history OF tn,
, Comstock lode
OF twenty-eight companies operating ol
this lode, from 1859 TO 1902. five were sue
eessful. paying dividends aggrega TIM
Sl17,7T2lOO, with assessments aggregatinI
xiO,a5.l5O The stockholders OF the othe
twenty-three paid $50 s2s5.s7s in assessment
and received Sl5,5Ol.7sO in dividends. 4
great many companies and a great man,
individual prospectors made expenditure
In that vicinity Of which no record wa
E made The total output in gold and sill
yer OF the Comstock mine TO January
D 1902, is estimated TO have been S3n, rs, 2ss
? and the total dividends sls2, 2,27gs SEQ
such disregard Of losses is doubtless du
y 70 the fact that so many people mex
I perienced In mining are willing 70 ctr