of wildcat tricks were successfully practiced upon the "tenderfeet" and
the "down-east suckers." In one case, stock was readily unloaded upon
the representation that a person could stand in the door of the cabin on
the property and "look right into the shaft-house of the Independence
mine." This statement was not untrue, although grossly misleading; for
while it was actually quite possible by the use of a telescope to span
the intervening three or four miles, visually, the prospect lacked the
propinquity to the famous mine that was the bait implied by the
statement in the prospectus. This is but one of many ingenious tricks
that were played. Did the outcome of this one fraud cure the victims of
irrational mining investment?
Railroads, too, have, in the past, added their troubles to the mining
men. Recent laws have, however, to a great extent, mitigated the
annoyances and unjust practices that the common carrying companies have
been in the habit of committing. It is now obligatory upon a railroad
company to treat all shippers without favor or discrimination, so that
the difficulties formerly experienced by one mining company in getting
enough ore cars to transport its shipments while its rival company could
have cars in abundance, is now almost a thing of the past. It takes time
to right all wrongs of this sort. It is a slow matter to get laws
framed, passed through the necessary legislation, and made effective.
But the outlook is favorable, along this line.
The leasing system has exercised an influence upon the mining activity
of many districts. By this system is meant the custom of renting or
letting the whole, or fractional parts, of a mining property to miners
who enter upon and work the premises, extract the ores, and pay to the
owners a specified percentage of the receipts from the marketing of the
ore. This practice has frequently been the only successful way of
operating some mines. It has, at times, been the manner of operating
practically every mine in certain districts.
In districts carrying pockets of very rich ore, "high grading" has been
discouraged in this way, for the "leasers" (incorrect, though common,
word for lessees) do their own mining and there is much less object in
stealing.
In other instances of mines which have been operated by the owning
companies until they were past a profitable stage, it has been proved
possible to prolong the life of operations very materially by leasing
the property to miners, who always work with more diligence and economy
for themselves than they ever do when working under "day's pay." This
feature of leasing has been quite a factor in the lives of some of the
mines of the Cripple Creek District. Until the recent drainage of the
district through the Roosevelt Tunnel, there were numerous small--and
even some large--properties that had worked all the ore bodies
previously known to exist above the water level of the district, and had
been obliged to shut down because of the heavy pumping expenses. Company
operation did not longer pay. But the plain "leaser" and his partner
could go into such old workings and they could prospect and find ore
bodies that had escaped the observation of the superintendents. The
expenses incurred in leasing are low. It is true that lessees will not
probably take as good care of mine workings and equipment as will
"company men," and often a property may be seriously crippled through
the lack of sufficient timbering after having been in the hands of a set
of lessees for some time. But, on the whole, there has probably been
more benefit than loss through the letting of leases.
When, a few years ago, the plans of the National Forestry Service were
put into effect, there was great complaint recorded concerning the
rulings that were made against various miners. Some very well
authenticated cases of wrongs were cited. However, it is now believed by
all fair-minded men that there has been no intention, on the part of the
officials of the Forest Service, to interfere with any legitimate mining
enterprise. There was a well-founded object, viz., to put a stop to
dishonest practices in obtaining title to timber lands by the
misrepresentation of mineral finds.
The General Land Office passed a rule authorizing Foresters and
Assistant Foresters to make inspections of all mining claims within
their reserves and to report to the Secretary of the Interior. The idea
embodied in this rule was that these men, being agents of the Government
and upon the ground, are able to investigate the facts concerning every
mining claim and its claimant and so to run across any evidences of
fraud that might be attempted in the securing of title. Trouble
immediately arose because the Foresters were not all experienced miners
and prospectors and so were not thoroughly qualified to pass judgment
upon the merits of mineral lands. This weakness has been admitted by the
officers of the Service but the excuse has been offered that there was
an immediate need for a great many Foresters and it was not possible to
secure men trained in both forestry and mining at such short notice.
"Just as soon as conditions became better understood, and money was
available to allow the Service to hire men whose judgment in mining
matters could not be gainsaid, such men were employed," says Paul G.
Reddington, recently Forester for the Rocky Mountain Regions. It is
true that much fraud has been prevented in the practice of taking up
Government lands and it is also quite true that the Forest Service is
endeavoring to uplift the mining industry in the western portions of the
United States.
Mining is bound to become a still stronger factor in civilization as
metallurgical processes multiply and there are discovered means of more
economically extracting the valuable contents of ores. Minerals which
are not now ores--according to the accepted, scientific definition,
because the values cannot be recovered at a profit--will, at some future
period, become ores. It is not safe to make any close predictions along
this line, for such marked reductions in treatment costs have been going
on during the last few years that mining men are entertaining great
expectations. Inventions for improvement in metallurgical lines are
being placed upon the market so frequently that it is difficult for even
the professional metallurgist to keep posted. This being true, it is
clear that the layman cannot expect to keep abreast of the
metallurgical advance. At the same time, it is well for everybody to be
slightly conversant with the wonderful advances being made in the
reduction and dressing of ores. Conspicuous in this field are the
improvements that have been effected in cyanidation, electrolytic
amalgamation and extraction, and flotation. These processes are
applicable to the lower grades of ore. Among the very recent successes
in the treatment of very low-grade gold ores are the operations
conducted in the new mills of the Portland Gold Mining Company,
Stratton's Independence, and the Ajax Gold Mining Company, all in the
Cripple Creek District. All of these mills are now treating old mine
dumps, the contents of which were considered as absolutely waste matter
at the time it was excavated. This stuff is now ore and its treatment is
making fine profits. There is still a demand for cheaper methods of
reducing ores of zinc. There are vast quantities of stuff that contains
very good percentages of zinc, but the material cannot be mined and
treated at a profit under existing conditions. With the invention of
something radically new in the metallurgy of this metal, there will be
opened an entirely different aspect in the zinc-mining regions. The
Leadville District possesses great reserves of this material that is
being held until it may become "ore."
[Illustration: FLORENCE MINE AND MILL, GOLDFIELD, NEVADA.]
XXII
THE MEN OF THE FUTURE IN MINING.
The mining of the future will probably be largely in the hands of young
men. To arrive at any conclusions concerning the probabilities of
success, therefore, we are obliged to recognize the dual conditions. In
other words, there is to be an interdependence between men and mining.
Up to this point in our discussion, we have dwelt upon the probabilities
as viewed from the standpoints of natural resources and of human
capability. In a certain degree, we have already covered the ground of
this present chapter; and yet there are some points that must be given
special consideration.
What is the true status of metal mining? Alarmists would have us believe
that civilization is rapidly exhausting the world's reserves of
available metals. Conservative investigation, however, repudiates such
notions. The best that can be claimed for the reliability of such
disconcerting statements is that they may apply in _some_ districts, to
_some_ grades of _some_ kinds of desirable mineral matter.
It may be true that the early miners have removed the "cream" from
Nature's deposits in some districts, in the sense that they have skimmed
off, as it were, the rich surface portions. But this does not signify
the exhaustion of deeper ore bodies, nor does it mean that the pioneers
were the only capable prospectors.
Why should we have any reason to deny the ability of present or future
generations to find just as good mineral deposits as did our
predecessors? Persons in some of the older of the western mining
states--as for instance, Colorado or California--are apt to carry a
misconception along this line. They can see a number of idle "camps"
that are mere relics of former thriving mining communities and they are
liable to jump to the conclusion that the day of mining at such places
is past, forever. However, as we look at the subject in a more rational
light, we shall see that there is no more authority for such an
assumption than there is for one to the effect that a farm in the
wintertime is a worthless proposition simply because, temporarily, it is
not producing its customary summer yield. Just as Nature brings about
changing conditions for the farmer, so will economic forces establish
varying degrees of attractiveness to the miner.
It is unfair to judge one of the pioneer mining districts by its
activity at the present time, if the productiveness happens to be small.
Let us look for the reasons of the apparent decline. The chances are
that the inactivity will be shown to be due, not to an exhaustion of ore
bodies, but to some needed changes in mining or metallurgical methods.
Very likely, under a readjustment of our notions about that particular
district there will appear to be as great latent possibilities as ever
cheered the earlier operators. The prospects may appear to be even
better than this, and the future may appear to extend greater
opportunities than were ever manifested in the past. Investigation may
disclose great bodies of ore that could not be seriously considered in
the earlier working of the region. In fact, speaking technically, the
stuff in question was not ore at the time of previous operations, for it
could not then be made to yield a profit. And yet, by introducing some
changes in equipment or methods of working or treatment, there may be
possibilities of making a great deal of money from an abandoned
property; and the chances are good that this same profit may be won at a
much more rapid rate than was ever before possible and that therefore
the economic conditions are enhanced. For we must not lose sight of the
fact that the greatest profits in mining usually accrue from the most
rapid exhaustion of the ore bodies.
A mine, or even a whole district, may have been deserted because of
failure on the part of original miners to recognize the value of certain
minerals. The recent revival of activity that has been noted in
Leadville mining circles is but an instance in point. In this district,
miners have given a delayed recognition to some important minerals of
zinc, and the indications are that Leadville has entered upon another
of its eras of mining activity.
But, it is not necessary to restrict our thoughts to the old mining
regions, for if we can observe how easy it has been to overlook valuable
deposits in a country that has been subjected to severe mining work, for
years and years, what must we conclude concerning the possibilities of
the many and vast undeveloped areas in remote portions of the globe? It
would seem that there is indeed very small cause for alarm about the
exhaustion of the earth's metals.
No, it can be shown that mining, which is one of the very fundamental
industries of the world and the one upon which every other form of
commercialism rests, will be carried on with a continual increase in
magnitude just as long as man exists. As the richer and more easily
mined ore reserves of Nature are exhausted, improved and cheaper methods
of mining, transportation, and treatment will be introduced and at a
pace that will equalize this exhaustion. We, of the present generation,
see the eminently successful handling of copper ores of grades so low
that they were not given passing consideration ten years ago. The
outlook would appear to be that the improvements in methods and costs
will not only keep abreast of needs in such matters, but the
probabilities are that they will take a very marked lead, with the
result of a continually increasing scope to the mining industry. Let us
then entertain optimistic views about the _future of mining_.
Now, as to the future of the young man who engages in mining there is
just as much to be said as there is concerning the career of a young man
in any other line of business. This word "business" is used advisedly,
for the day is past when any person has a right to say that mining is
anything but strictly legitimate business.
We look to the young men of the present and future to correct all of the
shortcomings that have hindered the establishment of mining upon its
deserved plane of stability in the minds of the general public. Young
blood will take a lead in the dissemination of the correct thoughts
about mining.
The successful man in mining will be, as heretofore, the one with the
right qualifications in his make-up. Is a college education an essential
prerequisite to success in mining? No, the writer is not one to declare
that young men cannot succeed in the business without college training.
However, there can be no avoidance of the proposition that the chances
of the college-trained man are better than are those of the man who has
not had the benefits of such a career.
A man may be said to engage in mining in three different ways. Thus, he
may operate mining property; or he may perform any of the manifold lines
of mining engineering; or he may be an investor in mining property or
mining stocks.
To prove a success when enrolled in either of the first two classes,
there is no denying the advantages of technical, mining education. The
successful investor likewise will do well to make a consistent study of
mining economics, and the more attention he gives to the many phases of
approved modern mining, the greater will be his ultimate achievement,
financially. Just as education along usual school branches is of
immeasurable benefit to any man of business, so is it to the mining man.
And in just as great ratio is the possession of innate business ability.
Education and natural ability are the two elements that will count in
the future of any young man in mining.
Space might be devoted to the discussion of the possibilities of young
men in the field of research work along scientific lines that would add
materially to the economy and scope of mining. Such a career offers
inducements looking to the achievement of honor as well as fortune. The
field for such service is ready.
XXIII
MISCELLANEOUS CONSIDERATIONS.
There are regions producing ores that are too refractory for the simple
treatments that might be given by company plants located at the mines.
There are districts that have many small gold and silver mines with ores
that do not yield to simple milling processes and which must therefore
be shipped to custom smelteries. Even were the ores amenable to milling
of some sort, it is often the case that the mines are not of sufficient
magnitude to warrant the maintenance of their own treatment plants.
Under proper trade and commercial conditions, there is no impropriety in
shipping ore to a custom plant or in selling it outright to a company
owning such a plant. But, contemporaneously with much of the mining in
the West, there has been such a monopoly on ore treatment that great
injustice has been wrought to the shippers of small lots of ore. Not
only has this accusation been true of smelting concerns but also of
milling companies. Once in a while representatives of such corporations
will arise and attempt to refute these statements, but the evidence is
overwhelmingly against them, and their arguments of being benefactors of
the miner fall flat.
By consolidation of companies and the elimination of competition,
arrogant methods and unreasonable charges have been put into force; and
the managers of mines have been obliged to accept whatever rates the
monopolists saw fit to charge for treatment and whatever arbitrary
prices they cared to pay for the metallic contents of the shipped ores.
Very gross extortion has been practised and even yet there are many
mining camps which are so absolutely under the control of these concerns
that properties which should pay well, under just and favorable
conditions, are forced to remain idle. These conditions could not be
expected to prevail forever, and the time is now at hand when the
extortionate smelting and milling trusts are meeting with pronounced
opposition and a greatly diminished business. The state of Utah has
demonstrated the ability of ore producers to bring the oppressors to
time and the mine owners of that state are in a much more favored
position right now than are the miners of Colorado, for instance, who
really have been the greater sufferers. The Utah mining men have
benefited by the sad experiences of the miners of the sister state. In
Colorado, the American Smelting and Refining Co. has been a domineering
factor in the mining industry for years, and the decrease of mining in
Colorado has been contemporaneous with the oppression of this great
corporation. The real cheating that has been practised by the ore-buying
and ore-treating companies is well understood by all mining men who have
been within their clutches.
It seems to be a fact that every tyrant eventually proves his own
undoing. In the case of the oppressive smelter trust, the greed resulted
in an immense income for the time being; but as mines were obliged to
close down because of the unjust charges imposed for handling the ores,
the quantities of ore handled continued to diminish. During the past few
years when mining has been so unusually dull in many of the western
mining camps, it has been very difficult for the smelting company to
secure enough ore to keep running, and the present outlook is not
encouraging. Statistics will show that the production of the metals is
not really so low as the decrease in tonnages would seem to indicate,
and the discrepancy is accounted for in the fact that very many mining
companies have installed their own plants for either actually recovering
their metals or for reducing their bulk of ores by concentration before
shipping to the custom treatment plants. Thus the smelting company may
still be turning out a large amount of metallic lead, for example, but
it is smelted from concentrates instead of from crude ore and the
tonnage, the principal basis for estimating smelting charges, is very
much less than was formerly handled in obtaining the same amount of the
same sort of product. The investigations started by the oppressed ones
in their efforts to evade the oppressor have led to wonderful results,
and it is no longer necessary for the miner to depend upon the smelter.
Some similar sharp practice against the mining fraternity was attempted
and for a short time successfully carried on by what was termed, in
Colorado, the milling trust. This concern handled the ores from Cripple
Creek, principally. The larger mining companies soon began the erection
of their individual plants and the practice has been extending until it
is now common for Cripple Creek mines to own and operate their own
reduction works, much on the order of the practice in the Transvaal
country.
As a final word in this discussion, the author wishes to reiterate his
belief in the legitimacy of investment in mines and mining stocks. When
mining is placed upon sound business principles and every detail of the
work is carried on with strict attention to sound economy, there can be
few failures. This means that business judgment and expert advice must
be used from the very start--in other words, that no false starts must
be permitted. Then, after getting under way in a worthy enterprise, the
successful mine operator will exercise just as close scrutiny of every
operation, method, and employee as do the men who conduct other
successful lines of business.
This little work has been prepared primarily for the perusal of men and
women who are not personally acquainted with details of mining, but who
entertain notions of becoming financially interested. It is hoped that
the simple descriptions of some of the elementary details will prove of
use to a great many persons.
CAPITALIZATION AND DIVIDENDS OF NORTH AMERICAN METAL MINES.