The Wallace miner. [volume] (Wallace, Idaho) 1907-current, 1915-11-25
THE LEASING SYSTEM
GROWS IN POPULARITY
GOOD MINERS READY AND ANx-
lous TO TAKE CHANCE ON
AN EVEN BREAK.
(salt Lake Mining eeview)

1HSAe 10 d wen ueIiIleu movement OF
foot in many mining districts to more
generally adopt the leasing system for
development Of mines and prospects
This is matter that has been neglect
ed in the past, and worse than neglect
ed; for under the old method of leas
ing the mine owners got all the or0-
fits and the leasers got little but ex :
perience.
The leaser, like the prospector. Is
a pioneer; and the pioneer in any line
of human endeavor is worthy 81 al
miration. In every camp are found
men--hard- working, honest, expert
enced miners-who are not only will
ing to take a chance on developing
ore in likely places, but are anxious
to make the attempt if once persuad :
ed that they win not get the short ED
of the deal after ore is found. They
may not have the engineers technical
knowledge-in which connection it can
be safely said that the engineer sell
dom makes a successful leaser: they
may not even know how the ore got
there, for they seldom bother their
heads about ore deposits. But past
experience has taught them that GER
tain occurrences of rock formations in
the district have led to ore in the past;
and they go out after the ore, and gen.
orally get it.
Objection to Old System.
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
expense to him had been. And the ye-
suit was that he often put in his time
with practically no return. We recall
case, a few years ago-and no names
will be mentioned, for 1t strikes toe
near home-where two young men had
a lease that was to terminate in six
months time, the royalty to be paid
on sliding scale. They went to work
on 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 tc
5 or 10 inches, and they were enabled
to get out a small shipment the last
month, at the end of which time the
showing was so good that the officials
of the company refused to extend the
lease. Worse than that, they demand
ed and collected 40 per cent royalty
strictly as per contract, Of course. And
the young men, after paying for pro-
visions, supplies and tools, had $3.50
to divide as the result of six months
steady work.
The system now being generally
adopted, however, calls for no royalty
until the value of the output exceeds
day wages for those employed. Often
too, an option goes with the lease, anC
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
Cripple Creek Plan.
In the Cripple Creek section of Col
orado the split check" system has
been generally adopted, and some of
he big mines of that wonderful dis
trict can trace their present success to
the operations of leasers under this
system. The method is for the opera
tor or company to furnish the lessee
with air, power, mining supplies of all
kinds, and to attend to hosting and
transportation. He is given every en-
enlargement possible while doing deao
work, and knows that, though he may
not be making anything, he at least is
not running behind.
When pay ore is reached and ship.
ments commence, the company re.
ceives the checks from mill or smelter
and divides the amount with the les
see fifty fifty" In this way the own
er is showing his faith in the n operty
and the leaser performs the manual
labor so essential to mine development
and always with fair prospects of
finding something big. This system
has proven and is proving a success
wherever tried.
Better Than "lrish Dividends"
Some owners have a deep-seated
prejudice against leasing But the
more experienced, especially those who
have tried to open small properties
with insufficient capital and by means
of Irish dividends" are coming to be
firm believers in this manner of devel-
opment. For how many small proper
ties, with their corps of manager, sup
erintendent, shift bosses, blacksmlths,
Office force, etc, can boast of paying to
stockholders 20 or 25--or even 10 or
per cent of the value of ore produced?
And again, encouragement to the leas-
er might otherwise lie undiscovered
for generations to come.
MINING NEAR ROSE LAKE.