The Farmington times. (Farmington, St. Francois County, Mo.) 1905-1926, 1919-03-07

At the present time condition in the
mining fields are considerably de-
owing largely to the low price
III minerais. This community which
has been very largely interested in the
Miami, Okla, fields, is suffering quite
severely from such conditions, as there
has perhaps been considerable more
than half million dollars taken from
Pennington and st. Francois Couny
and invested in the past two or three
years. g,
Quite recently the Lucky Jack and
the Pennington Mining Co., which
we're largely owned by local Teople,
have been sold, for the reason that
they could not be operated at a profit
to the stockholders, owing to the high
royalty they were up against, 20 per
cent. The question of royalty was
generally in measure overlooked by
investors, who failed to fully consider
what 20 per cent off the gross earn
ings really meant.
The Lucky Jack, one of the richest
properties in that field, did run for
some time, and sold over 100000
worth of ore when prices were around
$50 per ton, but even then they failed
to make money, owing to the large
expense of production, which enabled
them to little more than break even,
after the excessive royalty had been
paid. The royalty must be paid, be-
fore any profit can be figured on. IL
is the "pound of flesh"
While those who had invested large
sums in that field are among the most
successful and sagacious business men
il Pennington and St. Francois coun-
ty, they had failed, evidently, to rec
cgnize the enormity of that blood
sucking incubus of 20 per cent royal
ty. together with the large bonuses
they were compelled to pay. n cash
and stock. The only men in this COM
munity who thus far have made money
in that field are those who have par
ticipated in the cash bonuses, stock
bonuses and in the royalties.
Most Of these who have made actual
investments in mining propositions
| in that field were led to believe that
not only 10 per cent month, hut Of
ten as high as so per cent o month,
could be reasonably expected from
such investment. Just what repre-
sentations were made to the various
investors prehaps no one knows, 9TH
er than the investor and promoter
but if is perfectly safe assumption
that glittering tales of wealth were
spun to many, who were unable to
| withstand the tempter.
| That many Of the properties in the
| Miami field, in which many local pc.
opie were largely interested, were and
are very rich, there is not 4 question
of doubt. But when ut comes tf
caying an excessive 20 per cent royal,
! ty, as we'll as high cash bonuses ans
lurce stock bonuses, "there Is no sucf
Gniinalr that will stand for X, un
less mineral should continue at tn
high water mark it reached for awhile
| When any property has such leases or
| ii as this, constantly consuming IL
very life blood, the stockholder wh'
invested money without any promotion
stock, cash bonus or royalty iiacessar
lily stands small chance Of even get
lting back any part Of his investment
tItmust all be consumed in time py tn
| .kitty.ns m
| The many local investors IN tina
| field are arnsag our leading and mos
4 reputable eitiaens, Many Of ther
lh0xrowea quite heavily to invest Y