The Wallace miner. [volume] (Wallace, Idaho) 1907-current, 1917-09-27

Were the directors to convert their
plan Of management into the leasing
system the direct result would be the
mine. There would then be so much
traffic in supplies into the town to
support the population, and SO much
ore would be hauled out that the road
would be open all the year. This
would be of great financial benefit to
the mine in even this one particular,
because it's production would be con-
tinuous. The company would be freed
from the problem of delivering all its
ore during the peak load of summer
when railroads and smelters are rush
ed.
Summary of Advantages.
1t is not my purpose to offer an ex-
haustive' discussion of this subject.
am merely pointing out some of the
high lights" which occur to me as
advantageous in considering the leas-
ing system as a direct method of mine
management for mines with a long
and prosperous life ahead of them
and not merely for such mines as OBJ
viously have one loot in the grave.
Summarizing, some of the advantages
are: /. Intensified effort in each mans
portion of the work, which is bound
to result in economy of time and
money; 2, expanded activity of the
mine through increase in number of
workers, regularity of production. in
creased production and exploration,
and establishment of towns at mines,
instead Of small camps; 3, increased
income to the company from company
stores selling necessary merchandise;
income from sale of compressed air,
transportation, and such other SER
vices as the company can furnish bet
ter than the individual leasers.
All these advantages are obvious
and others will occur to anyone con-
sidering a specific problem in relation
to some particular mine. But they
will not come of themselves, and pari
passu with the change Of operations
from a days pay basis to that of a
leasing system. The success or fail
ure of any plan rests with the man
Iagement, provided that the plan is
sound. In the issue of Worlds Work
for July, 1917, this point is empha-
sized by A. ]. Hemphill, chairman of
the board of the Guaranty Trust com.
pany, the largest trust company In
| the world. He says: TN considering
employment of funds in any concern
1.-The greatest emphasis should be place
ed on the ability of the management
would say that the most important
consideration in any investment is
management, management, manage
ment, and again management. 1t is
not enough to know that it is honest
it's ability in that particular business
should be established. Ninety-five pei
cent of the worth of an undertaking
should say, is in the management
Does that hit home to any of us, OF
do we calmly apply 1t to the Other
manager or superintendent;
Proper management Of the leasing
system is it's sine qua non. If it is tc
be operated in a haphazard, inhffer-
ent and careless manner then it will
fail as surely as any other method. lr
order to apply the leasing system ir
1.-THE effective manner which will make
1t as highly efficient as 1t should bt
THE company must maintain accurate
records. It goes without saying tina
1.-The technical data of mine mapping
land assay records will be CAREFUL!
compiled and preserved. But the puls'
of the business will lie, as 1t always
does, in detailed accurate accounting
The company must arrange it's agree
lments with its leasers SO that 1t will
know the actual working costs of tn
Ileasers and the financial condition o
each lease account. This information
, is the basis of the whole relation be
> tween the company and leaser, an
without the detailed data the rate o
royalty can not be adjusted fairly TO
, both parties.
Proper Adjustment Of Royalty 10 I'm
8 portant.
The rate Of royalty is the adjust
9 able factor which makes the relation
4 ship of the two parties endurable. TIL
t costs of labor, of supplies, of trans
8 Iportation are all pretty definitely fix
: ed, so far as the leaser Is concerned
e |but the royalty rate is the connectin
8 tie in which link may be let out G
: taken up to make the conditions fai
t to both parties. We know district
: where the royalty rate has becom
= fixed through custom, 10 per cent pei
a haps, Is per cent elsewhere, and ie
!, or,rr ,n5,yiduaI coNs In indiyidu,