The silver state. [volume] (Winnemucca, Nev.) 1909-1925, 1915-12-07
SOME SOUND ADVICE TO
BOTH LESSOR AND LESSEE

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Speaking editorially the Salt Lake
Mining Review says: There is a well
defined movement on foot in many min
ing districts more generally to adopt
the leasing system for development of
mines and prospects. This is a matter
that has been neglected in the past,
and worse than neglected; for under
the old method of leasing the mine
owners got all Of the profits and the
~leasers got little but experience
The Ieaser, like the prospector, is a
pioneer; and the pioneer in any line of
human endeavor is worthy of admira-
ton. In every camp are found men
Woodworking, honest, experienced min
ers-who are not only willing to take
a chance on developing ore in likely
places, but are anxious to make the at
tempt If onee persuaded that they will
not get the short end of the deal after
ore is found. They may not have the
engineers technical knowledge-in
which connection it may be said the
engineer seldom makes a successful
leaser-they may not ven know how
the ore got there, for they seldom
bother their heads about ore deposit
ton. But past experience has taught
them that certain occurrences of rock
formations in the district have led to
ore in the past; and they go out after
the ore, and generally get it.
The system in the past has been for
the company to demand a certain roy
atty, no matter how long it took the
lessee to extract the ore, nor what the
xr.,a Io1 hooa 20 him md tho re
suit was that he often put in his time
with practically no return. We recall
a case, a few years ago-and no names
will be mentioned, for it strikes too
neal home-where two young men had
a lease that was to terminate in six
n.onths time, the royalty to be paid on
a sliding basis. They went to work on
a small streak of ore, just enough to
encourage them to keep at it, and
worked faithfully for more than FIVE
months. Then the ore opened up to
or ten inches, and they were en-
abled TO get out a small shipment the
last month, at the end of which time
the showing was so good that the off.
Gals of the company refused to extend
the lease. Worse than that, they de
manded and collected 40 per cent roy
atty, exactly as per contract, of
course. And the young men, after pay
ing for provisions, supplies and tools,
bad $12O TO divide as the result of six
steady work.
The system in the past has been for
dopted, however, call for no royalty
until the value of the output exceeds
day wages for those employed. Often.
too, an option goes with the lease, and
all royalties are to be applied on the
purchase price. This gives the leaser
the inducement to develop, and the
owner the benefit of development with
fair prospects of sale.
The method is for the operator or
company to furnish the lessee with
air, power, mining supplies of all kinds
and to attend to hosting and transpor-
He is given every encourage
possible while doing dead work,
and knows that, although he at least
Is not running behind.
When pay ore is reached and ship
ments commence, the company receives
tie check from mill or smelter and di
the amount with the lessee eff
ty-ffty." In this way the owner is
his faith in the property, and
the leaser performs the manual labor
so essential to mine development, and
with fair prospects of finding
something big. This system has proven,
and is still proven, a success wherever
tried.
Some owners have a deep-seated pre-
against leasing. But the more
experienced, specially those who have
to open small properties with in
sufficient capital and by means of
dividends, " are coming TO be
firm believers in this manner of devel-
For how many small proper
ties, with their corps of manager,
superintendent, shift bosses, black
office force, etc, can boast of
to stockholders twenty-fve-or
even ten or five per cent of the value
OF the ore produced9 And again, en-
couragement to the leaser often means
the opening of ore bodies that might
otherwise lie undiscovered for genera
to come.