The Eureka sentinel. [volume] (Eureka, Nev.) 1902-current, 1922-02-04

applied to IL that Is demanded in the
ordinary transactions OF the daily
business of the city. 1t is especially
true in metal mining hat men OF the
best business training throw to the
winds all the accepted principles
which have brought them success in
their own affairs, when they under
take a mining venture.
Some years ago a group of New
York men, who have made millions
of dollars in their particular business
in New York, and who to-day are rat
ed individually as millionaires sew
eral times over, bought a mine in
Arizona. One of their number was
made managing director. In four
years of operations nearly $1,000
600 was spent on the property,-and
only a hundred tons of ore were pro-
duced. One of the particular features
of the underground development was
q tunnel driven to open up ore, and
this tunnel. having a total length of
about 5000 feet, made a complete
circle and came back to the point of
entrance. Furthermore, 1t vas driv-
en- near the top of the mountain, so
that even If 1t had disclosed a valu-
able ore-body, it would have been
necessary to sink a shaft in order to
extract any considerable tonnage of
ore. 1t was current talk in the near
est town that the course of this cir
cular tunnel vas the result of week
to week directions telegraphed from
New York, and these instructions
came from a consulting c~lairvoyant,
instead of a consulting engineer. At
any rate, a fortune was spent on the
mine, coming from the pockets OF
hard-headed and successful business
men, and at no time did it receive an
iota of the care and attention which
would have been given the business
had it been transacted In New York.
Faults were ascribed to the mine
which really existed wholly in the
management.
During 1920, reports the Depart
ment of Commerce and Labor, mining
added six billions, seven hundred and
seven millions (s6,707,0 GOO, 000) to
the wealth of the nation, and more
than one million workmen we're en-
gagged in these mining industries.
Surely a business of such importance
deserves the very best business judg-
ment and technical direction. In this
connection two examples show how
changes in the technical manage
ment resulted in making marked sue
cesses out of operations which were
pointed straight to failure.
A few years ago a miner of Utah,
a practical miner"-a haze of ro-
nance seems to hang about this title
went to Chicago to place a mining
proposition before capital. Not many
Chicagoans are SO placed that they
are acquainted with first-class min
ing engineers, because Chicago cap
ital is not largely invested in mining.
In this instance the men approached
sent out as their representative to
pass on the mine a superannuated
mining engineer. He was an ac-
quaintance of n of the group, but
laborious werk of thorough mine
sampling, and yet he thought he
could determine the value of a mine
by casual inspection. At any rate,
he returned to Chicago with a fav-
orable report. The mine was bought
for a sum of money running into the
hundreds of thousands.
Then, because he was the "only
man among us who knows anything
about mining" the directors retained
the man who sold them the mine as
their general manager. (Parenthet-
ically, 1t should be said that mining
engineers recognize this procedure as
one of the most fruitful causes of
mine failures. 1t is done on the the
DRY that the man who has been in
charge of the mine knows about 1t.
But this is a fallacy that has cost
many lei hundreds of thousands to
unlearn.) Mine operations began,
and deficits appeared every month on
the balance sheet. This continued
for two years, with one explanation
after another coming from the mine
manager to excuse the conditions.
Then at last one of the directors,
wholly unframed in mining, but high
ly trained in the common sense of
business, went to the mine to investi-
gate. He was on the ground only a
few days till he fully comprehended
the drift of matters. He recognized
the inefficiency of the general man.
ager, discharged him, and then on
his W responsibility as president of
the company he hired a manager of
his own choosing and told him to
work out the problem.
The new manager, ignorant of his
predecessors record, took hold. His
first months operations showed a
profit of $4,000; the next month
bettered this result. and so 1t con-
tinued month by month till net prof
its were around $4,000 a month.
This improvement was effected with
no increase of force at the mine. 1t
was done simply by skilfui r~eorgani-
cation of the men and equipment at
hand.
The successful manager had asked
more salary than had been paid his
predecessor, the practical MINER"
and the directors had demurred. AT
ter the results of the first month of
operation were shown, this question
of salary increase was never again
mentioned. Some months later the
manager asked the treasurer how it
happened that the salary was paid
without comment. and the treasurer