Tonopah bonanza. [volume] (Butler City [i.e. Butler], Nev.) 1901-1909, 1907-12-14
IMPORTANCE OF
LEASING system

In districts producing high grade
ore the leasing system has become an
important factor in the development
of mines, without which the extensive.
exploration of large areas would be
impossible. In Leadville, Cripple
Creek, Tonopah, Goldfeld and mum
erous other districts lessees have for
years contributed a very material
part Of the output.
When Tonopah was first discovered
the scattering outcrops of rich ore
formed a great incentive to practical
miners unable to secure satisfactory
locations, and many of them were
glad to develop blocks Of ground UNI
der royalty, taking a chance, in many.
instances, of finding paying ore
which at that time, in Tonopah' a
new camp, 60 miles from the nearest
railroad, with many drawbacks,
meant ore worth upwards of 800
per ton.
Some rude head-frames of the
simplest construction were to be seen
scattered in a line along the outcrop
of the principal veins, and the sue
cessful lessees within the first few
months shipped away hundreds OF
thousands of dollars worth of ore.
Later the same scenes were enact
ed at Goldfeld, as they have been at
Cripple Creek, Bullfrog, Manhattan,
and at every rich camp discovered
in late years, says American Mining
Review. So profitable has leasing
been in these districts that leasing
companies, organized and incorpor-
afed, often with a large amount of
eash capital available for the prose-
cution OF development of improved
ground, have become as common as
the companies organized to operate
mines owned by them.
In a great number of cases lessees
undertake the development of ground
largely on hope of what may be found
and not on known conditions-there
being many exceptions to this, of
course. Fortunately a great many
leases have proved highly profitable
TO those engaged in the business, and
these successes have stimulated 9th
ers to take similar risks.
1t is the operation of this class Of
mining companies that the mining
stock market becomes an important
factor. A lease. known to contain
valuable ore deposits. or being in
proximity to others that have, is
LISTED on the stock market and
the demand for the stock, or the lack
of it, sets the price. Often the ma
ket value of shares %luctuate rapidly,
and the holders of these shares make
or lose money in proportion to their
investments.
In Comstock days the greater par,
of the money required for mine
equipment, development and opera
ton was obtained by assessments
which were paid with more or less
cheerfulness, but the investing pub.
lie had evidently become tired o.
these Irish dividends. and it is no
ticeable that most of these Nevad,
stocks issued in these later days are
of the worcestershire sort, the none!
being secured by the sale of larg'
volumes of treasury shares, and gen
orally these are SO numerous as =
put the stock within the reach o
ALL the stock market operation
generally fixing the price of stool
in a growing concern.
The lease which today attract
little attention. having no pay rock
and no immediate prospect of any
must sell its treasury stock for wha
it can get, but three months from
now this same stock may be eagerl
sought at a trice which seems at thi
time an impossibility. There hav
been during the past four or fv
years numerous instances of thi
kind. Mohawk being a notable eH
ample.
The lessees must Systematically eN
plore the block of around agree
upon, there usually being definit
requirements and limitations whic
are strictly enforced, otherwise Their
would result, in Sthe richer mine
serious litigation.