Part 10

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.

=============================================================================== Company | State or | Metals | Capitali- | Par/ |Dividends to | Country | Produced | zation |Share|Jan. 1, 1912 -----------------------+----------+------------+-----------+------+------------ Alaska-Mexican |Alaska |gold | $1,000,000| $5 | $2,634,381 Alaska-Treadwell |Alaska |gold | 5,000,000| 25 | 11,385,000 Amalgamated |Montana |copper |155,000,000|100 | 63,579,315 Anaconda |Montana |copper | 30,000,000| 25 | 47,700,000 Arizona |Arizona |copper | 3,669,300| 1.20| 14,373,550 Baltic |Michigan |copper | 2,500,000| 25 | 6,050,000 Boston & Montana Cons. |Montana |copper | 3,750,000| 25 | 62,425,000 Bullion-Beck & Champion|Utah |silver, gold| 1,000,000| 10 | 2,738,400 Bunker Hill & Sullivan |Idaho |silver, lead| 3,000,000| 10 | 12,211,350 Butte Coalition |Montana |copper | 15,000,000| 15 | 2,450,000 Calumet & Arizona |Arizona |copper | 2,500,000| 10 | 11,500,000 Calumet & Hecla |Michigan |copper | 2,500,000| 25 |112,750,000 Camp Bird |Colorado |gold | 5,387,000| 5 | 6,541,960 Centennial-Eureka |Utah |gold, silver| 5,000,000| 25 | 2,700,000 Champion |Michigan |copper | 2,500,000| 25 | 5,700,000 Colorado |Utah |silver, lead| 200,000| 0.20| 2,270,000 Copper Range Con. |Michigan |copper | 40,000,000|100 | 10,751,180 Crown Reserve |Ontario |silver | 2,000,000| 1 | 2,387,898 Daly |Utah |gold, lead, | 3,000,000| 20 | 2,925,000 | | silver | | | Daly-West |Utah |gold, lead, | 3,600,000| 20 | 6,201,000 | | silver | | | DeLamar |Idaho |gold, silver| 400,000| 5 | 2,737,520 Doe Run |Missouri |lead | 10,000,000|100 | 2,448,478 Elkton Con. |Colorado |gold | 3,000,000| 1 | 2,666,959 El Oro |Mexico |gold, silver| 5,750,000| 5 | 12,426,590 Esperanza |Mexico |silver, gold| 2,250,000| 5 | 10,752,750 Federal |Idaho |silver, lead| 30,000,000|100 | 8,300,000 Gemini-Keystone |Utah |gold, silver| 500,000|100 | 2,000,000 Goldfield Con. |Nevada |gold, silver| 50,000,000| 10 | 11,027,812 Granby Con. |B. C. |copper,gold,| 15,000,000|100 | 3,778,630 | | silver | | | Greene Con. |Mexico |copper | 10,000,000| 10 | 6,137,800 Guggenheim Exploration |Mexico |all metals | 22,000,000|100 | 10,151,995 Hecla |Idaho |silver, lead| 250,000| 0.25| 2,090,000 Hercules |Idaho |silver, lead| 1,000,000| 1 | 3,132,000 Homestake |S. Dakota |gold | 21,840,000|100 | 19,955,550 Hond. Rosario |C. A. |gold | 1,500,000| 10 | 2,955,000 Horn Silver |Utah |silver | 10,000,000| 25 | 5,642,000 Iron Silver |Colorado |all metals | 10,000,000| 20 | 4,250,000 Kerr Lake |Ontario |silver | 3,000,000| 5 | 2,430,000 La Rose Con |Ontario |silver | 7,500,000| $5 | 2,890,912 Mammoth |Utah |gold,silver,| 10,000,000| 25 | 2,220,000 | | copper | | | Mohawk |Michigan |copper | 2,500,000| 25 | 2,150,000 Mountain |California|copper | 6,250,000| 25 | 4,216,250 Naica |Mexico |silver, lead| 30,000|300 | 3,190,000 Nevada Con |Nevada |copper | 10,000,000| 5 | 2,400,000 Nipissing |Ontario |silver | 6,000,000| 5 | 5,490,000 North Butte |Montana |copper,gold,| 9,000,000| 15 | 9,040,000 | | silver | | | North Star |California|gold | 2,500,000| 10 | 2,786,988 Ontario |Utah |silver, lead| 5,000,000|100 | 14,962,500 Osceola |Michigan |copper | 2,500,000| 25 | 8,958,650 Panuco |Mexico |gold, silver| 2,000,000| | 7,465,000 Parrot |Montana |copper | 2,300,000| 10 | 6,991,138 Penoles |Mexico |silver, gold| 2,000,000| 50 | 4,741,687 Phelps, Dodge & Co |U. S. |copper | 50,000,000|100 | 8,766,747 Plumas, Eureka |California|gold | 1,406,250| 10 | 2,831,294 Portland |Colorado |gold | 3,000,000| 1 | 8,677,080 La Rose Con |Ontario |silver | $7,500,000| $5 | $2,890,912 Mammoth |Utah |gold,silver,| 10,000,000| 25 | 2,220,000 | | copper | | | Mohawk |Michigan |copper | 2,500,000| 25 | 2,150,000 Mountain |California|copper | 6,250,000| 25 | 4,216,250 Naica |Mexico |silver, lead| 30,000|300 | 3,190,000 Nevada Con |Nevada |copper | 10,000,000| 5 | 2,400,000 Nipissing |Ontario |silver | 6,000,000| 5 | 5,490,000 North Butte |Montana |copper,gold,| 9,000,000| 15 | 9,040,000 | | silver | | | North Star |California|gold | 2,500,000| 10 | 2,786,988 Ontario |Utah |silver, lead| 5,000,000|100 | 14,962,500 Osceola |Michigan |copper | 2,500,000| 25 | 8,958,650 Panuco |Mexico |gold, silver| 2,000,000| | 7,465,000 Parrot |Montana |copper | 2,300,000| 10 | 6,991,138 Penoles |Mexico |silver, gold| 2,000,000| 50 | 4,741,687 Phelps, Dodge & Co |U. S. |copper | 50,000,000|100 | 8,766,747 Plumas, Eureka |California|gold | 1,406,250| 10 | 2,831,294 Portland |Colorado |gold | 3,000,000| 1 | 8,677,080 Quincy |Michigan |copper | 3,750,000| 25 | 19,330,000 Richmond |Nevada |gold, silver| 1,350,000| 1 | 4,453,797 | | lead | | | San Rafael |Mexico |gold, silver| 60,000| 25 | 3,218,338 Sta. Gertrudis |Mexico |gold, silver| 3,000,000| | 3,960,000 Sta. Maria del Paz |Mexico |gold, silver| 120,000| 12.50| 5,568,000 St. Joseph |Missouri |lead | 20,000,000| 10 | 7,208,357 Silver King Coalition |Utah |silver | 6,250,000| 5 | 12,522,385 Smuggler |Colorado |silver,lead,| 1,000,000| 1 | 2,235,000 | | zinc | | | Standard Con |California|gold, silver| 2,000,000| 1 | 5,194,130 Stratton's Ind |Colorado |gold | 5,500,000| 5 | 5,028,568 Strong |Colorado |gold | 1,000,000| 1 | 2,275,000 Tamarack |Michigan |copper | 1,500,000| 25 | 9,420,000 Tennessee |Tennessee |copper | 5,000,000| 25 | 2,056,250 Tomboy |Colorado |gold, silver| 1,500,000| 5 | 2,561,000 Tonopah |Nevada |gold, silver| 1,000,000| 1 | 6,450,000 United |Montana |copper | 50,000,000|100 | 7,625,000 United Verde |Arizona |copper | 3,000,000| 10 | 26,722,000 Utah Copper |Utah |copper | 15,268,000| 10 | 5,629,785 Utah Con |Utah |copper | 1,500,000| 5 | 6,900,000 Vindicator Con |Colorado |gold | 1,500,000| 1 | 2,227,500 Wolverine |Michigan |copper | 1,500,000| 25 | 6,300,000 -----------------------+----------+------------+-----------+------+------------

INDEX

Accidents, 104

Adit, advantages of, 97, 100, 101, 104

Adit, defined, 95

Ajax mine, 200

Alaska, 8, 44, 67, 123

Amortization, 151

Anaconda mine, 44, 119

Arizona, 77

Australia, 26, 125

Bancroft, Geo., 160

Bankets, 116

Bassick mine, 112

Batea, 64

Bingham Cañon Dist., 73

Black Hills, 33, 74

Blanket vein, 111

Brazil placers, 8, 67

Buried placers, 61

Butte District, 44, 183

Cages, 102

California mining, 26, 31, 42, 61, 67

Camp Bird mine, 33, 121

Canadian mining claims, 54, 55

Capitalization, 140, 216

Charleton, A. G., 16

Chimneys, 112

Churn drilling, 65

Climatic influences, 83

Coal mining, 20, 23

Coal washing, 17

Colorado Fuel & Iron Co., 183

Colorado lode claims, 52

Comstock lode, 43, 91, 99

Concentration, 13, 156

Consulting engineer, 165

Copper mining, 24, 43, 73

Copper, price of, 175

Cornwall, 25, 122

Cost of patenting claims, 58

Cradle, 64

Cripple Creek District, 91, 109, 112, 125, 193, 196, 200, 214

Crosscuts, 96

Custom treatment, 210

Dead work, 79

Dikes, 108

Directors' functions, 163

Dividends of N. Amer. mines, 216

Dry placers, 71

Egypt, 22

Ely District, 74

Esperanza mine, 125

Examination of mines, 130, 191

Exploitation, 79, 166

Extralateral rights, 53

Failures in mining, 190

Gash veins, 111

Gangue, 118

Giants, 68

Gold, price of, 170

Gold production, 30 to 38

Golden Fleece, explained, 24

Grab samples, 167

Greece, mining in, 25, 122

High-grading, 126, 195

Homestake mine, 33, 123

Hoover, H. C., 162

Hydraulicking, 68, 70

Inclines, 95, 100

Incorporation, 140

Iron ore prices, 176

Joplin District, 13, 91

Kansas coal mining, 5

Kemp, Jas. F., 18

Kentucky lead mining, 8, 85

Keweenaw Peninsula, 116

Kimberly diamond mines, 43, 112, 127

Labor considerations, 84, 85

Lead, prices of, 178

Leadville, 44, 114, 150, 201, 205

Leasing, 195

Leonard, P. A., 186

Life of a mine, 92, 150

Lode defined, 51, 109, 110

Long tom, 65

Low-grade mining, 122, 200

Machinery, 89, 154

Management, 162

Mass, defined, 113

Metallurgy, 14

Mexico, 34, 43, 125

Mexican mining claims, 55

Milling, 14

Mine accounts, 179

Mine, definition of, 4, 8, 20

Mine promotion, 134, 139, 146, 186

Mine reports, 168

Miner's licenses and certificates, 55

Miner's pan, 64

Mine sampling, 130, 167

Mine timbers, 88

Mining, defined, 20, 80

Mining engineer's functions, 164, 191

Mining plants, 105, 154, 155, 157, 160

Minnesota iron ranges, 6, 42, 72, 127

Monitors, 68

Mount Morgan mine, 6, 73

Nevada Cons. Copper Co., 6, 74

New Zealand, 61

Nickel mining, 34, 43

Nickel, price of, 174

Ore defined, 18, 19

Ore deposition, 117

Ore dressing, 14, 16

Ore in sight, 131

Ore reserves, 131

Oroya-Brownhill mine, 125

Open pit mining, 72

Ophir, location, 24

_Pertinencia_, 56

Placer dredging, 66, 153

Placer defined, 60

Placering, 14

Platinum mining, 33

Platinum, price of, 172

Political considerations, 87

Porphyry mines, 76

Portland mine, 182, 200

Prospecting, 39

Prospects, 148

Prospect drilling, 65

Prospectuses, 186, 188

Quicksilver mining, 43

Quicksilver, price of, 178

Reddington mine, 43

Reddington, P. G., 198

Reefs, 116

Richard, R. H., 15

Rickard, T. A., 127

Riffles, 68

Robinson mine, 128

Rocker, 64

Roosevelt tunnel, 196

San Juan Region, 33, 99, 153

Secondary enrichment, 119

Secrecy in operations, 183

Shafts, 94, 98, 100

Silver, price of, 172

Silver production, 36

Skips, 102

Slope, defined, 95

Sluices, 68, 69

Sorting, 14

South Africa, 24, 33, 35, 128, 149

Spain, 122

Spurr, J. E., 120

Steam shovelling, 7, 72

Stock, defined, 112

Stratton's Independence mine, 194, 200

Stripping, 75

Sudbury district, 43

Supplies, mine, 87, 88

Surveyor-General offices, 58

Sutro tunnel, 99

Tin, price of, 173

Title to property, 81

Tonopah district, 13, 150

Topographical considerations, 82, 99

Transportation considerations, 82, 194

Transvaal, 13, 91

Treadwell mine, 44, 123

Treasury stock, 144

Treatment monopolies, 210, 214

Tungsten, price of, 174

Tunnel, defined, 94

Unionism, 85

United Verde mine, 182

U. S. Bureau of Mines, 28

U. S. coal claims, 47, 48

U. S. Forestry service, 197

U. S. lode claims, 46, 51

U. S. mineral output, 32 to 37

U. S. mineral surveyors, 56, 58

U. S. placer claims, 49

U. S. Postal Dept., 138, 189

Utah Copper Co., 6, 73

Van Hise, C. R., 115

Vein, defined, 107

Wallace, J. P., 150

Wallaroo mine, 43

Wasp No. 2 mine, 74

Wildcatting, 137, 193

Williams, Percy, 191

Zinc, price of, 177

End of Project Gutenberg's The Business of Mining, by Arthur J. Hoskin