"ftL
THh bUMPTER MINbR
Wednesday, May 25, 1904
LARGE PROFIT S
IN SMELTING
Great Guggenheim Fortunes
Pounded on an Invest
ment of $5,000.
As dividend payers mines uud
smelters are rivals for the first place
araoug the great industries of the
country. In uo other form ot pro
duction is capital assured ot such
large and certain profits as it is when
mining and smelting are combined
under oue management.
Pi oof of the earning capacity of
mines aud smelters is afforded by the
huge fortunes that have been created
out of their profits. Amoug the
wealthiest men in Amorica today are
tbo large stockholders in the Amer
ican Smelting & Refining company.
Less than twontj-llvo years ago these
mou were comparatively poor and the
wealth which they now possess did
not exist. Tho story of their rapid
rise to affluence aud power is a part
of the industrial aud financial his
tory of this country.
Fivo thousand dollars was tho foun
dation of the fortune amounting to
scores of millions now placed to the
crodit of the members of the Ciiiggeu
heim family. In the early days of
Leadvllle tho A.V. aud Minnie mines
were Hold to (.iiiggeuheim aud lira
ham for 8", 000. These mines have
paid iaigo dividends, and the early
profits were enough to furnish the
capital to enable the owners to start
in tho smelting business. They built
a smelter at Pueblo, Colorado, and
later, from time to time, as war
ranted by iucreased supplies of ore,
thoy added largely to its capacity
until It wan mauy times its original
si 7.0. The profits of the business
wo 10 the sources of the capital by
which it grew. They built other
smelters at suitable places in this
country, liritisb America aud .Mex
ico, aud they also bought many of
the most productive mines in the
three countries. In consolidating
with the Smelter trust, the American
Smelting A- Refining company, they
resorved moat of t heir mining inter
ests, but through their smelter hold
iugs became a continuing factor iu
oue of the greatest of modern indus
trial combinations.
The other great brauch of the
smelting industry, before the forma
tion of tho preseut merger also had
its origin in Leadvllle. it was built
up by James Ii. Grant and his asso
ciates. Mr. (Jraut, afterwards gov
ernor of Colorado, went to Leadvllle
as an assayer. He had uo fortune.
The money to pay for his technical
education had been supplied by an
uuole. His earning? as an assayer
and ore buyer formed the capital with
which he started. His asociates
wero Edward Eddy and William H.
James, ore buyers for the smelter
then at CJolden, aud other smelting
works. They were also at that time
comparatively poor men. The ore
buying business in which these men
engaged as partners developed uat
urally into a business for treating
aud marketiug the product they were
haudliuu. They built a smelter at
Leadvllle aud later others, ouo iu
Denver and one in Ourango, Colo
rado, aud one in Omaha. As pre
viously stated, the interests of
Governor Grant aud his associates
anrt those of the (.lUggenheims con
stitute the greater part of the huge
smeltini! industry of this continent,
and the Guggeuheims are the owners
also of many of the most valuable of
American and Mexican mines. The
original cash investment out of
which this great aggregation of wealth
has grown was the So, 000 which was
paid for the A. V. aud Minnie mines.
Another proof of the great profits
of smelting is the tact that the
smelter trust is paying dividends up
on a capitalization enormously in ex
cess of the cost of its properties. A
large part of ita capitalization is
watet. The other part is based upon
the absurdly high prices it paid for
mauy of the plants which it pur
chased. In one instance exactly ten
times the price for which one smelt
ing plant had previously been offered
to the Guggeuheims was paid for it
by the trust. Iu another iustanco
milliuus were paid for a plant that
was obsolete aud has siuce been dis
mantled. If the profits of tho trust
were figured on the basis of the actual
cost of its property, the showing
would be a revelation.
Owing to the facilities for trans
portation and the greatly improved
metallurgical methods, the indepen
dent smelters now entering the field
have advantages aud opprot unities for
profit which the men who founded tho
smelting trust did not have. The
field is more extensive, the bodies of
oie which have been developed aud
can be profitably treated are enorm
ously greater, aud investments have
the security aiforded by known aud
settled conditions. Western Miner
and Financier.
TO PUCE EASTERNERS ON
BAKER G0UN1Y FARMS
C. S. Van Duyn aud C.L. Slickney,
well known rimhermen, have formed
a copartnership to represent, the
Mutual Realty company, of .Seattle,
iu the matter of handling real estate
iu the Sumpter valley and other
linker county localities.
The Seattle firm is said to have
a large eastern clientage and it is the
purpose of the local representatives
to secure options on farms, with a view
to placing prospective settlers on
them.
Left Tor Portland.
F. M. Root, who has had charge
of the Golconda power house, left
this afternoon for Portland, probably
to return when the repair work aud
improvements are completed at the
mine. His wife left for Nevada to
visit her parents during the time.
THE FAIR ROUrt
Via Chicago or New Orleans to St.
Louis, is the oue that gives you tho
most for your money and the faot
that the Illinois Central offers un
surpassed service via these points to
tho World's fair, and in this con
nection to all points beyond, makes
it to your advanatage, in case you
coutemlpate a trip to any point east,
to write us before making final ar
rangements. We can offer tho choice of at least
a dozen different routes.
B. II. TRUMHULL,
Commercial Agent,
142 Third street, Portland, Oro.
J. C. Lindeey, T. F. A P. A.,
14 'J Third st., Portland, Ore.
P. R.Thompsou, F. A P. A.,
Room I, Colman Rldg.,
Seattle, Wash.
UNCERTAINTY IN
THELIFE0F AMINE
f nd of a Successful Mine
is a Melancholy
Event.
Old mines sometimes "play out "
and sometimes only "make believe".
Rut whether the seeming exhaustion
is real or only apparent, the spectacle
always carries with it a certain touch
of pathos that the ttaigc muse might
well brood over. The melancholy
days of a nig mining enterprise,
when they come after a long season
of fru iff uluess, are worthy of poetic
threnodies.
"The life of a mine," as a subject
for language, however, has not re
ceived so much attention from the
poets as it has from tfie pi act leal
minds of mining engineers and
financiers. It is one of which sooner
or later presents itself to every mine!
manager. Mines which live their
lives well and exhaust their full
capacity in the interests of humanity
are to be romein bored with feelings
of respect. Those which die young
or before their due, leaving the full
measure ot their possibilities un
real ie.d are to be remen: tiered with
feo lings of regret. When they are
murdered by incompetency, the senti
ment is mixed with a desire to con
demn tho murderer without show of
mercy.
The case of tho Raid Ruffe Mining
company, of Helena, Montana, is an
interesting example of a successful
entreprise. "Successful" is the word
because it is impossible for anyone
to Hay whether it could or could not
have been more successful than the
event proved, and success is a relative
term. Capitalized at c 2 f. 0,000 in
1800, this company has within a peri
od of lourteen years paid dividends
of $1,11117, 1 18, or more than five
times the par value of the investment.
Tho Rocoid does not possess the in
formation to show what the original
price of tho stock was. Resides, the
company still iiwiih its property ami
mill, is free of doht aud has a small
cash reserve. In I !)()!( it failed to
earn a net profit aud there is a sus
picion that the mine is pinching out,
thought the rctiiing manager depie
cate such a belief.
Fivo hundred and forty per cent
upon the par value ot the capital
stock represents the net earnings of
this property iu tourtcn years.
After returning the oiiginat princi
pal, th annual profit upon the in
vestment has exceeded M0 per cent,
aud the company still owns the
property, which may revive and con
tinue to earn for its owners. What
more can be asked of such a mine?
Perhaps it should lie permitted to lay
down its bunion and rest iu peace,
that its owncrw may show their rever
ence for the prime ordinance of na
ture, that all things muht pass away.
The company cannot lie censured fur
making a final disbursement out of
its surplus as au acknowledgment tint
it does not see any further future tor
it. This is a matter of judgment, for
which a successful company need give
uo accounting to the public. Thoi
only question is whether the life of a I
company should end with the life of
its mine.
Perhaps, however, tho Raid Rutte L
may again surprise the sjectatois
laud rise up to make a new nemd. It
! would not be the first time such a
thing had happened. The engineers
( have boon conducting fuemals ovet
Shattun's lucdrendonce foi teveial
yonrri. Dully aWIiuiik limim.
Snow Creek Placers.
Lafe Farmer came in this afteruon
from the California Gulch pincers
owned by the Snow Creek company,
where he has charge of the woik. A
tlume is being constructed, and prop-
iarations ppoodily completed.
FREE! FREE!! FREE!!!
.').()() (Vrtilicatc of the best
Oil Stock absolutely irivcn awav.
Write at once for plan how to
secure Five Dollar.-' worth of
fully paid and Hon-n.vessablo
Oil Slock without cash.
INVESTORS' LISTS COMPANY
Room 721 Park Row Ride;.
NKW YORK
THE
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84 at ii Stilt st.
CHICAGO, - ILLINOIS
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THf SUMPTER GOLD BELT
MINING COMPANY
CAPITALIZATION $100,000
F. ( KKOMti.
M. F. MI7..Y,
I'. . lUTKNI'M,
(). ii.ciianci:,
C. 11. FKNNKi:,
President
President
and Treas
Attorney
Knginenr
Vice
See.
OPERATES NIKS III THE
GREENHORN (NO SUMPTER
DISTRICTS
Sumpter, Oregon
ATTENTION!
Do you desiie to sell stock in your
(iold, Copper, Mining or other In
dustrial companies If so, you can
not Hud a better advertising medium
"the OIXIE MANUFACTURER
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Subscription price f'J.OO per year.
Advertising rate reasonable. Send
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1
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