White Pine news weekly mining review. [volume] (East Ely, Nev.) 1910-1920, 1911-05-07

ENGLISH SYSTEM OF PERMA-
NENT COMPANIES MANAGED
BY ENGINEERING FIRMS FINDS
FAVOR WITH INVESTORS.

United States, mines were expected
to pay for their own development.
The capital invested was almost en-
tirely that which came originally
from the ground, but the amount
needed was small. 1t was still pos
sible to find veins that showed rich
ore at the surface. and with only the
modest equipment, or none, mines
could be opened and developed. I'm
fortunately this Is rarely true at
present. The big surface bonanzas
are gone, and to succeed now 1t Is
necessary to prospect deep ground
systematically, or to work on such a
large scale as to make a profit from
low-grade ore. Either course de-
mands large capital investment, and
where to obtain the money is the
acute problem In many a district. II
is not within the province OF a tech
nical publication to promote indi-
vidual enterprises. no matter how
worthy and the Mining and Scien-
tifie Press, as well as those concern
ed in its management. remains aloof
from all promotion. At the same
time. il may be helpful to state brief
ly exactly what may be expected
when a worthy property Is suitably
presented to those who have money
to invest in mines.
London Is now the greatest min
ing market. Great Britain receives
a yearly return of $750,000, 600
from investments In foreign lands,
and of this sum-, metal mining. ex-
elusive of iron, contributes $780,
600 900. Approximately one-half of
this is the return on investments in
gold mines: for the great gold mines
of the world belong to the English.
In Great Britain, as elsewhere, men
who have made money in mines are
usually willing to try again, and the
English system of permanent COM
panies managed by engineering firms.
favors refnyestment of the company
surplus in a new mining enterprise.
Many of these firms have established
enviable regulations and are able to
command large amounts of capital
for any enterprise that can be shown
10 be profitable. Whether or not the
ore exists and can be mined at a
profit. determines whether or not the
investment will be made, rather than
the proposed scale of the enterprise.
II is evident that only %propertis that
will stand examination can be
handled under these conditions, but
any such property can secure on fair
terms the money that ii needs. Just
what those terms are may be illus
trated by a few examples.
II must be remembered that Eng
lish investors are not inclined to pay
out a lot of cash unless some certain
profits are in sight. If a property
has large prospective as we'll as Ger
tain profits, the owner can get the
full cash value of the certain profits,
and the acquiring company will. in
addition, find the cash necessary for
the eqnipping of the property. Such
properties are seldom obtainable.
and the more common case is that OF
a property which has sufficient prob
able profits to warrant its full equip
ment but not enough to warrant a
cash payment to the owners. In such
cases the inancier is usually willing
TO put his cash for equipment against
the owners mine. The interest re.
tanned by the owner would depend
on certain profits as well as the pros.
pective profits. For example, take
the case of a mine that has available
10000 tons of S13 ore on which z
saving of s11 can be made. the work.
ing being estimated at Sc pei
ton. and where the ore. both at ENDS
of drifts and in its bottom. is of good
grade. Such property would warrant
the erection of a plant with an in.
itial capacity of 50 tons per day. Pre-.
Stunning hat this would cost $4,000
to $50 600, then the owner would be
given an interest of perhaps a. pei
cent.
Or, taking the case of a mine thaI
has 10000 tons of $3.50 ore or
which a saving of SIS can be made al
a working cost of 81. again with
good prospective profits, an equip
ment for handling 100 tons would be
warranted. Such a plant would
probably cost s100, 600. and the own.
er would not receive more han g
one-third interest, possibly one
fourth. in a company with the re
quired working capital. In case OF
a property with several exposures ol
outcrop, over a considerable length
these exposures in width and length
~warranting the expectation Of prof.
liable exploitation, the vendor would
be given a quarter interest in a com
pany with sufficient working capital
to prove the value of the property
In all cases. the owners would have
to submit as full reports as possible
and If these are not made by some
one of known ability, then the own.
ers would have TO deposit some cash
as a guarantee that the property
was not misrepresented. The titles
should be perfectly clear, preferabl,
United States patent.
Another method of dealing with
properties of merit is to lend suffi.
cient money to the owners to place
the mine In a productive stage. Ii
this event. there must be suficieni
certain profit in sight to repay tn,
lender the amount of his loan plus
uNlntu go =