Western news and the Libby times. [volume] (Libby, Mont.) 1920-1933, 1930-12-11

highway, the railroad, or the subway,
public patronage must pay for it, and
return the capital tt, those who ad-
vanced it. The promotefe>of the rail-
road or subway must figure in advance
whether the patronage will justify the
moving of the waste rock, while the
mining promoter must figure whether
the ore-rock has the value in it to
justify the moving If tunnel con-
tractor can move rock for Soc cubic
yard, why cannot mining operator?
Again the answer is disqualification
and equipment" Some mines handle
ore for 81 ton, others for 81. s., IS,
$40, Sl2 and $40 ton. Why the differ
ence2 qualifications and equip
ment is again the answer.
In starting a new mine, it Is but a
prospect. The first thing to do is to
explore it and see what tonnage is to
be moved. Sometimes a few shovels-
full Of rock will tell the prospector to
quit. In other places the explorations
may follow ore to great depths and
justify massive equipment for hand
ling large tonnages.
The technical geologist can, to some
extent reduce the risk by analyzing
the formations, but remember that
geology is merely line Of reasoning
by students of earth formations. Coco"
comes from the Greek word that
means earth. Logic is shortened to
logy," hence geologic report means
earth-logic or earth-reasoning)
The Risk Is in Exploring.
There is some risk in exploring
not in mining it after it is explored
but in exploring Even SO, exploring
can stop any time that continuing it
IS not justified. 1t is seldom how
ever, when exploration goes to ex-
.ensive lengths, that the tonnage
opened calls for suspension of the
work Many promoters use the argu-
nent that "the ore will improve in
falue with depth" This is often the
case. The risk" is in the judgment Of
the man making the prophecy, and
not in mining
A widespread idea prevails that
some ores are too low grade to be
handled at a profit This is general
ly matter of qualification and
equipment. A mine equipped with its
exploration machinery, capable Of
handling two drills with three or four
ore cars, and producing Is or 20 tons
a day with six or eight men, must
nave hch ore, to carry the whole over
head expense Of the mine on twenty
tons Of ore, and still pay dividends
to 1000 stockholders. There comes a
time when looking for rich spots"
that will pay with the exploration
equipment, nnst stop, and equipment
be installed for mass production
Rock that has been regarded as too
low grade" must be handled at low
costs and made into ore. Again, quail
ifications and equipment"
Stockholders May Interfere.
But this requires more capital and
stockholders frequently are possessed
with an idea that they have been led
into poor investment They throw
every resistance they know how to
throw, in the way of the promoters
securing competent finances.
All through the whole campaign Of
exploration and development, the pro-
motors and officers of the company,
get no more cooperation from the
stockholders than a prohibition agent
gets from bootlegger In other in
dustrial investments, the stakeholder
is urged to invest to help finance the
industry. He puts III his money, tells
his friends, urges them to go into the
investment, and expects no return till
the industry is built and the custom
ers are secured He is told that his
stock will pay as business builds and
he sticks with it. If it is well planned
business he succeeds.
In mining the promoters Do not urge
public investments to financs the in
dustry, but to speculate upon the for
tune hunting possibilities of striking
rich ore, or a chance to resell their
stock at an advance. Mining, there
fore, has appealed to the speculative and
gambling instincts, instead of to the
investment judgment. Thus, when a
promoter tries to finance mine he
finds his first buyers back in the mar
ket as profit takers" before his fl
nancing is completed With the prop
erty still unfinanced, these profit TAX
ers break the market and destroy con-
fidence, even when the promoters are
making an honest effort with good
property.
Wrecking by Stockholders.
/ wonder if stockholders realize what
an important factor they are in wreck
ing their own investments when they
rush hack to take profits" before
their mine is financed They rush to
the banks, brokers, and their friends
with complaints and grumblings, which
in no way helps the promoters to get
further financing.
Do investors in mining stock put
their money in for the purpose Of fl
nancing an industry, with real de-
sire OF producing metal for an income,
or. do they merely buy stock as they
would gold brick" that looks good
and is offered cheap-merely in hopes
to find Some one who will pay more
for 1t without any real desire of pro-
ducing ore, beyond mere show OF