Gilpin observer., 1915-10-14
ENDORSE CHANGES IN a
LEASING SYSTEM

The Observer prints below a let
ter commencing our position In ad-
vocating more equitable leasing
system than has prevailed for years,
as set forth in an article published d
a few weeks ago. This is the sec
ond communication we have received
from mining men whose views along
this line coincide with ours, the 9TH
er having been written by cne of the
officers connected with big tunnel
project entering Gilpin county, who
| claims that it was through the aid
Offered the lessees by the owners of
one of the biggest paying mines on
the line of the tunnel, that made it
possible to open up this big vein,
which has been a source of great
revenue to both the lessees and the
mine owners.
What the Observer objects to most
in the unreasonable terms exacted
Of leases. is the payment of royal
ties regardless of whether the re-
ceipts from the ore produced are suf-
ifcient to pay the cost of mining.
Under this unfair arrangement, the
lessees in many instances are re-
quired to suffer this loss and at the
same time are giving the mine own
er tie benefit of the development
work being done in the mine. Many
mine owners are reasonable enough
in their dealings with lessees to
waive all royalties where the les
sees are running behind and it in
variably results in the men continu-
ing to work and probably placing the
mine on profit-producing basis. when
royalties should commence
aspen. Colo. Oct. 6, 1915.
Editor OF Observer:
Dear Sir: In your paper of re-
cent date it is with pleasure that
those Ct us who still realize that
mining is the fundamental industry
OF Colorado. and must continue to
be, read the improved terms of leas-
es in your section. and which con-
tain suggestion fer all other locali-
ties where production must necessar-
lily come through lessees.
The old terms are unfair toward
both owner and leaser, and manifest
ly unjust toward properties, whose
perpetuity is of concern. TIE prop
erty ought to stand the cost of
extraction If it can be made through
production. and the disregard OF roy
alties. until there shall be returns in
excess OF cost, allows some direc-
ticn by the owner as to the man.
ner in which work shall be done
There will be less reluctance as to
dead work by the lessee and there
will be work of a better class.
"The new relation is in fact part
nership in the right sense though
limited by the term. and operation
will be characterized by greater
fairness. The extension of develop
ment becomes of mutual interest be-
cause Of mutual advantage. There
win be less talk as to worked out
properties, which though wnwarrant-
ed has been INDUCED to the great
harm of localities. Colorado has no
worked out mines.
Depth and extension have how
often failed of ore? Here in Pit
kin county under liberal leasing pol
icy there would be many men at
work for there is ore in old work
Sngs and there is every promise as
to extension with resulting new ore
bodies. The labor of the lessee is
the investment of important capital
and deserves right recognition.
Time has passed when we can
look to development through outside
money. That time may return be-
cause of the result Of the home ef-
fort. The prosperous places Of Colo
rado are where the people take hold
and push home opportunities.
Colorado is neither an agricultur.
al state nor a manufacturing state.
The farm areas are too far apart for
homogenecusness, and they are not
interdependent. Distributing terri
tory Is lacking fer manufacture on
extensive scale despite the abound
ing coal and the available water. Our
prosperity is up to ourselves, must b<
Through our own effort, and the ba
sis of 1t is in the mines.
Very truly.
w rNv, AfNyu<