Gilpin observer., 1915-04-08
THURSDAY APRIL 9th, 1915
RISK IN MINING COMPARED
TO OTHER CALLINGS

The business of mining has always
had to carry the burden of unde-
served criticism of uninformed and
unthinking people who are prone to
class investments in mining and min
ing shares with gambling on horse
racing, gambling at cards, etc. The
legitimate business of mining and
the successful mining enterprise is
compelled to stand sponsor for ev-
cry failure and every wildcat pro-
motion in which the public becomes
involved, says the Utah Mining News.
1t is just as impossible that every
mining enterprise should succeed as
it is that every commercial under
taking can succeed; but we never
hear of an unsuccessful commercial
enterprise having to bear the burden
OF some one else's failure in the
same or similar line. Why is it?
If banking corporation should fail
no one thinks of banking as rot
ten" or ''skinflint" game and no one
thinks of drawing such conclusion,
or of advising against the invest
ment in banking stocks or bonds
That being the case, why should
mining not receive an equal amount
OF just consideration?
Talk about risks in mining, What
lines of business and commercial en-
terprise have We in which there are
no risks? Can you think of any?
You organize company and go in
to the grocery business; you make a
success of it; another man does the
same thing-and fails. You organ
ize a mining company to develop a
group of claims that are known to
carry mineral; you open up a big
mine. Another man does likewise
and probably under even more favor
able conditions than you had-and
his ground does not pan OUT
In the case of the groceryman he
might have purchased a large por-
don of his stock of goods when
wholesale prices were high. Suddenly
glut comes in the market and whole
sale prices drop; tie firm or COM
pany that is lucky enough to be on
the buying side when prices are down
is able to undersell his competitor
and maybe put him out of business.
The miller may contract to supply
a company with great quantities of
flour at stated price; then an I'M
expected drouth comes and the price
OF wheat scars beyond the point
he loses money on his flour contract.
a number of such unlucky turns and
the milling company goes bankrupt
and its stock ceases to have a val
ue.
No one thinks of condemning the
grocery business or the milling busi-
hess because of these failures and
the consequent wiping cut of the val
ues of the shares they own in such
concerns.
A mining company may be organ
lied, stock may be sold and a great
mine developed with the proce eds of
such stock sales. Stock prices may
advance and dividends may be paid.
Everybody Is happy and the manage
ment of tie company is highly prais-
ed. Then, conditio ms over which
the management has no control may
arise and a vast enterprise becomes
wrecked; the mire becomes flooded,
the price of copper. or silver, or lead.
may be reduced to a point where
there no longer is a profit in oper-
alton and the mine Is closed down.
Share values drop in comparison to
the condition prevailing and, without
the slightest reason in the world,
the management Is berated and min
dng as a business Is given a black
eye. The mining company that was
forced to the wall may have paid
more in dividends than its capital
ization amounted to; 1T may be able
to resume and continue to earn big
money when favorable change
comes, but that feature Is net given
cons'deration-tecau II Is mining
Mining is one CT the very choicest
and most profitable callings in the
world and 1t Is he oming more poru-
lar and better understood every day.
The fruit raisers, TIE merchandising
enthusiasts; the dry farmers and
scores of men In other callings WHO
gave up mining as a business, are
gradually returnif to the fold. SO
mining Is going to boom and again
make fortunes fer multitudes of peo-
ple-beginning now.
Tie Obgeryer.-s2. 90 nor vear