The Caldwell tribune. [volume] (Caldwell, Idaho Territory [Idaho]) 1883-1928, 1907-01-19
Legitimate Mining as an Investment.

Legitimate Mining as an Investment.
Legitimate mining has had to con-
tend with greater obstacles in main
tanning public confidence than any
other avenue of commercial life, In
spite of the fact that the returns TO
stockholders and investors have far
surpassed all others in the business
world, and the real failures have
been many per cent less. Fake"
and wild Cat" propositions In
which the unwary investor has been
caught, has tended to fill the public
mind with suspicion. 1t is entirely
unjust, as it has often worked
hardship upon worthy mining enter
prises and kept many man from
we'll deserved fortune.
The New York Tribune. one OF the
most conservative newspapers in the
country, had this to say in a recent
editorial on subject Of mining In
vestments: Despite it's load of
fraudulent claims and wild Cat"
schemes, the mining Industry has
paid more money in dividends, COM
pared with other industries started
in the last thirty years, than any
business known. Compare the pro-
fits in mining with the profits on the
one hundred and fifty-six thousand
odd miles of railroad, with aggre-
gate liabilities of nearly ten billion
dollars, then you will see which pays
the most. The objection fails to rea-
lie that the very sinews of COM
merce comes from the mines, and
that they are the root of half of the
successful industries of the country.
In 1901, 1902, 1903 and 1904,
there was steady, healthy increase
of prosperity. OF the many millions
produced from the mines, the amount
was divided so all avenues of in
dustry profited; more than ten per
cent went to railroad corporations,
thirty-seven per cent to mine owners,
fully fifty per cent to the smelling
works, while the residue. thirty
eight per cent was circulated among
the laboring element"
Eliminating the purely fake" and
"wild cat" propositions, and consid-
ering only the investments In legiti-
mate mining, more money was lost
during the years 1903 and 1904,
through depreciation in value of rail-
road and industrial stocks (notably
U. s. Steel, than has been lost in
legitimate mining in fifty years.
The idea once so prevalent that
success in mining was largely mat
ter of luck, was disproved by the
United States Industrial Census of
1890. The analysis of the returns
is interesting and instructive, Brief
ly summarized, they are as follows;
S.2S5,61S persons were engaged
in Agriculture. The total value oil
. the farm products shows the amount
produced per capita was $2s7.
521,S06 persons were engaged in
Forest industries (saw mills, log
ging, etc., The net value of the
product per capita was $425.
4.476,ss4 persons were engaged
in the Manufacturing Industries
The net value of the product pei
capita was s764.
74,439 persons were engaged In
the Mining. Milling and Smelling oil
Gold, Silver, Copper, Lead and Zinc
This does not include coal and iron
The net value of the output per cap
ita was $3.50.
Reliable statistics show that the
average earnings of banks, manufac
turing and merchandising institu
tons is from ten to fifteen per cen
on their increased capital. The av
erage earnings of mines is from fift.
to two hundred per cent on their en-
tire capitalization. The reports o
two hundred and twelve active min
ing and smelling companies showed
that up to July 6, 1901, they hat
paid dividends of 1857. 01O,4S0
which represents return of thu
amount actually invested thirt.
times over, and as these reports GOV
er period OF fifteen years. twice th'
amount of capital actually investe,
has been returned annually
The man who invests in mine a
business proposition stands les
chance of loss than if he were buy
ing high grade real estate, and hi
chance of large and satisfactor
profit is many times greater.