Los Angeles herald., 1907-07-22
PLAIN TALK BY A
MINING ENGINEER
POINTED DISCUSSION ON INVESTMENT VS.. sPECULA-
TON" IN RELATION TO ALL MINING PROPOSITIONS
BY d. L. vANDERvooRT, e. NJ.

EQltOr Herald: WHue tue ulSCi Aiiiln-
tion of the spectacular has been and still
is in favor of the wondrous opportuni-
ties presented in our sister state, the
more conservative man, the investor, has
pinned his faith to California and is care
fully scrutinizing the immense possibili-
ties which lie beneath the rugged noun
tain ranges and the vast expanse of the
desert of the southwest.
1t has long been an established fact
that after the rush and whlrl of specu-
laton in a newly discovered district;
after the passing of the prospective stage
which is acknowledged as the most
hazardous of the development period;
after the proving of a great property and
the establishment of costly machinery;
after continuous dividends are assured,
then comes the man of shrewdness and
stability seeking investments for the fu-
ture. Uusually the small buyer of
stocks Is satisfied with the rise in the
value of his holding and sells at the
time when he could realize a handsome
return in dividends. The buyer usually
an old campaigner in finance, is content
to pay the advance and hold his stock
as an investment and a dividend pro-
ducer.
Millions Won and Lost
AS has been the history of such old
camps as the Black Hills, Cripple Creek,
Tonopah, Dawson and many other bo-
nanza localities which are good old has
beens'' so far as speculative induce
ment is concerned, so has California
reached the condition where the conf
dence of the man of money is in evil
dence on all sides in the development of
mines and the establishment of mechan-
ical equipment. Those old camps where
millions of money were made and lost
in speculation are today plodding along
as rhythmic as clockwork, paying
handsome returns to the "stayers" who
had faith in the properties and the man
agement.
The great eXpanse of rugged desert
country lying within the boundaries of
San Bernardino and Inyo counties still
presents many alluring inducements for
speculative capital; so many In fact that
it is difficult to choose where "all are
good and the chances are equal" but
to the man who seeks to provide for his
or his children's future; to the man who,
as he advances in years, hopes to enjoy
the fruits of his investments, advice is
extended to seek among those mines
where sufficient development Is accom-
plished to justify his action and become
a part owner in the enterprise by TAX
ing what shares he can afford.
Many things are to be considered in
the selection of a property in which
one Is invited to invest before comply
ing One should consider the location,
the accessibility, the capacity, the man
agement and the reports of the examin-
ing engineer. A careful scrutiny of these
conditions by all prospective investors
would eventually drive the wild cater"
from the field, stimulate the desire for
| legitimate investment and would un-
doubtedly thin the ranks of the dis
grunted buyers who leaped before they
! looked.
Wealth of California Counties
| In San Bernardino as in Inyo counties
many opportunities constantly occur
where the capitalist and the wage Garner
can secure excellent investments in good,
solid companies who can honestly and
conscientously guarantee substantial re-
turns.
"Why then" it may be said, "does the
management need to sell any more
stock?" Listen! They don't want to, but
they must and the reason is plain. You
are offered partnership in a company
at a reduced rate with the assurance that
your interest will increase in value and
pay you a good return upon completion
of the outlined improvement. In this
case machinery is necessary for the
economic reduction of ore and machin-
cry costs money, and lots of it, too. Even
after the mill. hoist, engines, cyanide
plant, pumps, etc, are ordered, 1t Is nee
fulness, and a wise superintendent never
pauses in his efforts to block out and
provide more ore, having in mind that
when the mill starts it must continue
night and day indefinitely and he is re-
sponsible to the stockholders for the
production of a continuous supply of ore
from which each partner "a stockholder
is a partner) expects his monthly quar-
terly or annual profit or dividend.
One Mine Inspected
AS an example illustrating the above
let us take the Siam mine, which in the
writer's opinion should rightfully be in
the field as a sound investment
This mine is located 28 miles east of
Los Angeles and within three miles of
Siam station on the Santa Fe railroad.
The Siam mine Is admirably located
in the low foothills of the Ship noun
tains and is easily accessible over an
excellent road with all almost impercep-
tible grade. The Ship mountains lie op-
posite the Old Woman's mountains, and
both are a part of the Clipper range,
long renowned as among the richest min
eral bearing sections of the southwest
The sight which greets the visitor upon
arrival at the Siam property is most
pleasing. In plain view are the neces-