Wednesday July 9,1902
IO
THE SUMPTER M1N.ER
WESTERN MINER,
EASTERN INVESTOR
Interesting Article on Attitude
of Each to Each.
Tim prejudice which u number jf years
ago existed agaiiiHl mining, or, perhaps,
morn ipiurly, (i.iiiiHt mining '"uivo-l-inents,
iit )cruliiiillv MfiiriiiKity. There
was goml online for tin- existence of such
a prejudice, for ninny men Invested
tlii'lr Mii'iuiH In mining stocks withojit
careful Investigation uihI wcru easily
HTHliaded 011 account of this prominent
fuhuloun rcliiriiH In a fhorf time. Sto
ries were toltl of forliiui'H iiiailu in a day.
Sharp iiriiiiiottTM with everywhere Mill
ing; slock 1111. 1 In many wines on fulfil
rrxrlH,
Inventors with themselves very largely
to hlnini! In thin inalliT, for Ihi'y pill
Ihi'lr' money Into mining stocks with a
fort of fcelln, of "Ihth goon," ami tlm
lesiill ofliin wan that tin Investment
wan gone with t'm proinoliT. It woiilil
f.'ciu strange that hi many men who
with rari'fnl I aking other Invent-
mi'iitM hIioiiIiI put Ihi'lr money Into
mining slocks without careful ill vci-tiKH-
tlllll.
It is (run that iiiaiiy turn have Inst
'large fortiini'M an wi'll iih smaller sums
through mining inxestinonts. It in iiIhh
triui that many investors ran recall
heavy losses iiihiIh through tlm purchase
of mil estate in wi'hIitii town lots ami
In southern plautatioiiH. It Ih iloiihtful
whi'thiT tin' losses in mining stocks urn
greater than tlm proportionatu losses
through Investments in oilier Indus
tries. One roiiHlihTation whirh I'oiitrlliuti'il
to Dm feeling of prejudice was tlm fact
that an Investment In mining ftix'kH
seemed to partakti of tlm nature of gam
bling, for wry often tlm Inventor revel v-
fit large ri'luriiH iroui iiiiiiohi miming
TIhth in thiH iliffiTi-nri', Iiowovit, ho
I lll'lH If lion ,11111-11-1111', ,,.f.i,i, , ."--1
tween such Ku!iih ami the gains ,leh J
result from gambling in tlm latter cafe,
what A wins, IIIohch; in mining, what
the miner gains Is so much taken from
nature and added to the wealth of the
world. It may he trim that an invest
ment of $100 in u prosicvt, which ht
hapn nhowed no evidence of tlieimnicnne
amount of wealth hidden U'liealh the
fiirliice, will lead to a Hud of mom than
11,000,000. Thcpiln which tlm miner
maken, however, in not on account of
the loHfen ntiffered hy nonieone cine. Tlm
v:iii it in clean and contrlhuten no much
totheworlil'n wealth and alno to the
happinenn of the miner and othern of
mankind.
I have mild that thin fccliii)! of preju
dice in wearing nwav. Men hai liecn
inenlit:atin: methinlnof minim;. They
have Im'i'U ntudyini; tlm wayn In which
men Iiiim rineu fiom MisitiniM in tlm
' tunnel, drift or fluid to mimi1oiih of
wealth and honor, and perhapn ton neat
in the I'uited Slaten fcnate. Siichcafen
am not infrispient, and, if one will ex
amine the lift of men who may count
their wealth hy luillioim today, lie will
find many of them who have icceiw-d
their lament returun from the hidden
mineral refourcen of iiatum.
Science Iiiih done much to improve the
coiiditioun of mining and the extraction
of inctaln from tlm orcn, no that now the
rink which attache to iuvcftmcutn ot
thin cliiff of fccuriticH, whether in the
form of niini'H or mining ntivkn, in not
nearly hi tireat an it wananhort tiumauo.
In fact, the rink in no greater than it in
in many other lenitlmalc euterprifcn of
the country.
A well known hanker has f aid that the
money invested In iniulut; ci'iialn the
aumunt of money hivcMcd in li.iiikin,
! but the former pays much larger divi
dends Them is undoubtedly ii ore money
loft in speculating in corn, wheat ami
real cftute than in mining. It in cstinmt-
i-l that the annual dividends on the
11011 1 i mil capitalization of nulling com
ii.iiiIom niiioiiiiti to more thiint thirtiton
1 1
percent. It l no wniideMliiTiforo, tllut
during thi" year there has bfofi such.iiit.
Iii(iiiry for good inve-tmoiUfjIn mines
ami mining stocks. . j !
Tlm interest of tlm w'ostern ijilnor and
the eiiNtern Invoftor jshouldj bo onu;
nihnely, mutual benollt. Till- pm-oo-to'r
I'llafH tlm nyTiii" lliiirthtullts in
vestment of cani.t,ali(atid for the work of
the inlniT. Tim prospector Ih a poor
man and so Is the miner. 'Finite lucn
may haven group of gmtd claims woVth
now only a few hundred dollarn, or per
Iiiiiih 11 few thoiifand dollars. Tlm
claims might ni-ver lie worth any mom
If tile development- depended oir the
llahorol the miner, which Ih IiIh only
I capital. It costs money to sink u shaft
J to the depth of HMKI feet. The oxpoiifoof
Hitch work Ih from flit ,to f0 per loot.
SlalioiiH niiiHt lie out at different leveln;
cro-scuts must he run to the ledge, and
driftH have to lie run to hlock out the
om in the vclliH. SoinetinieH thousands
of dollarn am needed for puiupH to han
dle the. water. Tlm pumps of the On
tario niini'H co-t mom than l,(HH(,tKH).
Nearly fVHI.tHM) ami yearn of patient
work with required to make a Daly
Went, which Iiiim paid since October,
IH'IH. tlm uoihI hiiiii of 1 ,IUMI,(HH in dlvl-
tleuilM, ami in now di-trihutim: forty
ceutH a fharo per month, or Tl'.tt.H) to
the fortunate stockholders.
Not manv years ago one, who Iiiim bo-
coiiiii rich In mining whs developing a
croup of clalniH in Tiiitli; district. A
friend of IiIh said: "Hill, I inn sorry to
Hen you putting; your money into tlm hole
in tlm ground in that place, an you never
will llml anything."
Hill kept 011 working, hnwuver, and de
veloped the Centennial Kureka, which
Iiiih paid $'.,,7"i0,000 in ilivideinlH.
TIiIh Ih tlm history of tin) Ontario
mini!, which Ihih paid nearly H,KH,tKK)
in dlvidemlH, and aim of the Silver Kiln:,
.... .. t
lU-h haH paid in tlm laHt eil,t or nil..!
vearn mom than tTi.OOO.OOO in divideudn
itud In now dintrihuthii,' fllKKKK) every
month to tlm Mockholdern. During tlm
hint year the Silver KitiK paid l,:UH),000
to itn nlockholdern and till turn out the
hhiiiu nmotiut thin year. In fact, wu
may nay that all tlm ureal miiien of the
country with til iiiim timii only pronpectn,
which could lm ImiiiIiI for 11 few hun
dred dollarn. Tlm miiiern nought capi
tal for development. Tlm nwnem and
tlm Invi'Htom in the treiifiiry ntockn
of thenu companien have become
wealthy.
Two or three liunirtant factn inunt til
wayn Iki counldered. Tlm proniK-ctn
nlmiild Ik) well liH-ated nuil the tiiuiuit
meut of tlm mining company nlmuld Iki
capable and honcnt. However capable
the iiiaiianenient may lie, if it in dinlmu
tnt, luvctorn ftaud a I'liauce to lone.
'I he niiimiKcnicnl of a mining company
may ho houent, hut at the name time it
may ho incapable of devolopiut.' a mining
pronrty and ho extravagant in the ex
lieiifcn of development. If, however,
the uiaiiagement in capable and Imuent,
a well located property wilt very likely
become a good producing mine, and if
the management In capable, it implien
that a good fctccttoii of procrty would
ho made..
True, the lient of mining men may
MiuietimcM ho inintukeu. One man can
not neo further into thu ground than
another. It may take much longer to
develop thu proorty than wan antici
pated. Ofteiitimen men give up and
abandon the proorty, feeling that they
am on the wrong track ami that il In no
UfH to go any further. The hift cent of
money may have been np.'nt and the hint
nlmt put in with a feeling thai thu work
inunt hu given up and all that had been
nut in lnl. hut it him not unfreuuently
happened that thin lant shot opened thu
door to the great treanury vault. 'Many
thoUfamlHof dollamvwom .spent in the
develoiiinent of one of the niinuH of
Tintlc district anil it wan ulniut to he
iili.iiidoned. when a fortunate flint olieu-
vi the' way to Tut 9m body, from which
nearly .OOO.tXKH in tliviileiulH liuve tieen
taken.
There amneviTrtl fonnnof inventmentH.
Tlie capitalint who han iiiucli idle money
can liny a mine already well developed,
lie han to -m' for thin, however. He
prefer" to invent hin money in thin, way
rather than to buy for a few hundred
dollarn a group of pronpectn, which may
he developed into a good paying mine at
Iohh than a ipiarter of the eont of the
iiivcftincnt hu in making in thu miiien.
Only large capitnli-tn or ntrong nyndl
eaten can handle hiic.Ii Inveitmentn.
Another form of luventmunt In that of
dividend-paying ntookn. If a ntock lian
recently come to dividendn and If the
dividuudn am being earned hy the mine,
the ntock In a good liiveHtmeut for tbo-e
who have money that they wUh to put
out for tlie pnrpo-u of necurlng, a regular
hit 10. The Inventor should remem
ber, however, that thu average life of a
mine in not mom than seven to ten
yearn. Some conipanten extend ineir
iife ami greatly IniTeano their iimlltn by
buying adjacent proportion. Thu Silver
King, thu Daly-Went and other ennpau
ten of thin ntatu have done thin.
Another elann of inventinent In found
in the cheap treasury stock of 11 new
company. Thin In the method lined by
many wentern mlnem for securing capi
tal for development. A company Is or
ganized mill tlie proierty in deeded to
the company for 11 certain amount of
stock. Thu balance of the stix'k, from
oue-llftli to two-thirds, is put into thu
treasury to I hi sold, often tit a very low
llgiire, for thu purjionu of neeuriiig fundi)
for duveloiimuut. Persons who havii
small moans are frequently uhlu to make
such Investments prove very protltahlo
! to themselves.
Only u few years ago the treasury
stock of the Swansea company was sell
ing at ten cents a siiam. ah iuvchuiiuiii
of fit) secured 100 shares. In nix years
the inventor would have received in div
idends a little mom than f:00. He could
huvii nold out onu year ago for f-MMJ.
Thus his Investmoiitof 10 would in six
yours time have iimnuntei! to mor
than 7lH.
This is not an unusual case, hut 11 fair
sample. After the stock had Iiegun pay
ing dividends, it reached ! a share.
Some iKiuglit the Mock at this llgure. A
period of dullness came and somu of tlie
stockholders wore obljged to sell out.
their stock and realize only fifty cents a
sham. Of course, they lost on thu in
ventinent. The one who held on, how
ever, wan able to realize a handsome
RCBRODIE rA
-
KENTUCKY LIQUOR HOUSE
AND SUMPTER BOTTLING WORKS.
- - - JOHN GAGEN, PROPRIETOR. - - -Old
Whiskies, Fine Wines, Imported and Domestic Cigars.
Manufacturers of all kinds of Carbonated Drinks and Ciders. Sumpter, Om.
profit, even though he paid fl nidiare.
it is sometimes I'tU'Htloned whether
the treanury ntock of a company which
han but recently lieen organized on a
group of claims is worth twenty-live
cents a share. Suppose! the capitaliza
tion to lie 1,(XX),000 shares, thin price
makes tlie estimated vitluo of the prop
erty t'-'oO.OOO. Of courne, the prospects
could not ho sold at thin Ik'ure, hut it
inunt lie undemtood that the '.'50,000
represents thu price of the property after
two-thirds of thu proceeds from the sale
of thu treanury stock have boon expend
ed in developing the mine, which might
then lie worth fl ,000,000.
The Inventor is too often anxious to
secure returns almost immediately.
Sometimes one iersou may invest in a
mining stock at the early price and hold
onto It for a year or mom; another will
coinu in at thu elosu of this time and buy
the stock at the samu llgure. A short
tlmu after, an ore body is found and the
mine comes to dividends. Other inves
tors think that their stock should pro
duce large returns soon. When such an
investment is madu, the buyer should
wait patiently for thu development, nf
the property Into a mine, and If the in
ventinent has lieen carefully madu he i
ulniontsuru to receive largu returns.
It is true that often "wild-eats" are
turned loo-u iiiKiii thu country. Thu
western miner, however, is not more to
blame than the eastern promoter for
setting these animals loose. Companies
am formed hy such promoters pn pros
pects which may or may not have a gmnl
showing. Thu pur value of thu stock is
put high and then the price is put low.
The investor, himself, is not altogether
blameless, though hu may be unaware of
his part. Onu of the first iUestious he
asks is: "What is thu par value of a
mining stock?" It this Is $10 a sham
ami hu Is gutting the stock for from
twenty-live cents to $1 a sham, ho thinks
hu is getting from $11 to $0.75 for noth
ing. Promoters, both eastern and western,
make note of this and act accordingly.
Thu ipiestioiiH which should be asked
ere: "Is the proierty. well located?"
"Wluit Is the number of shures?" "In
the management capable anil honest?"
If thu investor would always take
nains to tint! out where hu is putting bin
money, there would be less danger from
"wild-cuts."
In conclusion, I may say that them is
no form of Investment which is so con
venient for thu man who has little
meuns. No other Investment offers the
opHrtu'filiies (lint a good investment in
a well chosen mining stock offers. With
a realization of thu common interests
lietween the eastern investor and the
western miner, there would bo lens com
plaint, more profita and greater prosier
ity and happiness. W. II. Tlhhals, Ph.
I)., of Salt bike, In United States Jour
nal for Investors.
Watches, Clocks
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Sumptcr, Oregon.
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