The Idaho recorder. [volume] (Salmon City, Idaho) 1886-1927, 1905-12-07
Business Principles
Applied to Mining.

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Ii practical EXP erience, technical
knowledge and honesty could be COM
bined in the business Of mining, the
production OF bullion from ores would
at once become the most attractive
occupation Of the whole industrial
field. The wealth of mines Is the
most direct gift 10 man OF all OF ma
lures many bounties. There should
be less risk in the investment re-
quired for the development OF good
prospect into mine, than In the
establishment of almost any other
business enterprise. Mining is I'M
like any other venture In the fact
that the element OF competition does
not enter into the estimate OF results.
There Is no sruitless and expensive
seeking OF markets for the product Of
gold mine. But mining Is rightly
considered by investors generally as
most hazardous business. This para
dox Is established by the prevalence
OF fraud and ignorance In the promo
tion and management OF mining en-
teIprises.
Mines are made aud not found.
The opportunities to make good
mines are discovered, but mines are
made from opportunities just as other
enterprises are made. The good
prospect In the wilderness Is a more
self-evident opportunity for invest
ment than an empty store-euilding
or an untitled farm. The probable
per cent of return Is many times
greater from good mine than from
a mercantile or real estate invest
ment. The merchant buys his stock
and 1t becomes subject to loss from
fire, strong competition and constant
depreciation. The farmer has the
risks Of season and weather, pests
and competition. Theoretically the
mine investor has no risks. Given a
good prospect, every dollar legiti-
mately expended should return an
asset Of two dollars In ore on the
dump, In the bin or In the Slopes.
This wealth does not waste and 1t
has an unlimited market, without
transportation charges or commercial
discounts, In every hamlet OF thc
civilized world. But the history oil
mine investments affords auothel
paradox.
The common practice Of mine In
yestment has established an erroneou.
business principle that seems to appl,
to no other enterprise. In the min
ing business the practice seems to bs
established OF paying as much fol
imaginary ore bodies as for the posi-
tive assets that can be measured b,
the tape and assayer's scales. IL Il
only 10 the mining business that sen
timent has a cash price. AS a result
Of this perversion Of business princi
pies the wildcat sells while the legit
innate mine in the same camp goe
begging for development. III mini
/ investors insisted upon values In or
for all money paid, the business
would soon become fixed upon SAT-
basis. The only legitimate risk IL
the mining business is the actual ex
penditure for the necessary labor u
determine the merits OF the prospect
Only after a mine has passed wei
beyond the prospect stage does 1t as
] sumo cash value.
1t is not the province OF the pros
pector to make mines, but to dis
cover the opportunity fer the specu
lator to make them The prospecto
depreciates his natural opportunitie
by a perversion OF business principle
that apply directly to his class OF In
vestment. The lottery idea prevail
too often with the prospector. He
prone to gamble on the possibilitie
of his discovery, rather than to RI
duce his occupation to common
place principle. III all prospectol
would work i'm accord with the In
yestors, and contend only for a
equitable share of the results OF til
mines after they were developed
instead of demanding.pay for imagir
r airy ore-bodies, the whole range {
mining business would assume IKE
principles, and all legitimate pro-
poets would find ready capital K
Development
When business rules are accepte
by all men who discover and develo
mines, all prospects will be develops
at once to the limit OF their demand
Only a good showing of mineral
: worthy Of the name OF prospec
! Given a good prospect there Is theo
{ etically no risk in mine developmen
Z Work on an ore-body puts an asset
s reserve for every dollar expended
8 development.