ITL ii B 1 '<' nniiinnH i; IJIllllIlllIlHIIlli HJCJ4KY B Cl.lFFORI> SLillili viPP^ j-j vy >o WHY THE SMALL INVESTOR MAKES MISTAKES' IN MINING INVESTMENT The Fabulous Fortunes Made in Mining Are Won by a Different System Than That Fol- lowed by the Average Promoter. THE COMMERCIAL MINER SPEAKS IN SELF-DEFENSE— THE ONLY TRUE WAY IS THE COMMERCIAL WAY. A $10,000 Book on the Subject Expressed FREE to Every Man Who Wants the Truth. The West IS Weary of Being Misunderstood. It is to be regretted that America's greatest profit earning industry is obliged to open to the world's view the skeleton in its closet, and ex- ' plain why so many well intentioned men fail to ! reap their proper share of the golden wealth ! nature has placed in her rocky vaults for their mining by men, rich and poor alike. First, last and all the time, we advise men of moderate means to invest in mines and prospects, because if the money is properly applied the returns will be far greater than in any other avenue of human endeavor. In fact mining is the only remaining avenue open for the man of limited means, BUT THE MONEY INTENDED FOR MINES MUST BE SO APPLIED. The West wants the East to join hands in winning more wealth. A desire to join hands in eliminating all unneces- sary risk, and -to do that we must open our bosom and show the cancer that has been eating out the confidence, of those who have, and still believe in America's greatest industry. That cancer can be cured; the people themselves can do it. We simply want to eliminate three pari- sites that have been sucking the life blood of the industry, which is confidence in the ability of min- ing to return great profits at the minimum of risk. The three stand openly accused: The honest though inexperienced man; the dishonest tnd inexperienced man; the dishonest and ex- perienced man. 7 ,^ Rocks in the Road to Fortune or The Unsound Side of Mining BY HENRY B. CLIFFORD Practical Miner of ^2 years experience MEMBER OF The New York Consolidated Stock Exchange The Los Angeles Stock Exchange The Salt Lake Stock Exchange The Los Angeles Chamber of Mines The Gilpin County Chamber of Commerce PPtlCE, SI. 50 PUBLISHED BY GOTHAM PRESS NEW YORK 1908 COPYRIGHTBD ALL RIGHTS RBSERVED DEDICATION nnO my companion, and partner, wKo roughed it with me in Arizona, Colorado, New Mexico, Montana and old Mexico, who braved the hardships of a memo- rable trip down to the waters edge in the Grand Canon of the Colorado, before the Railroad had made the route one or modern comfort, who, without the slightest regret would leave the comforts of the East for the rough mountain fare of the new districts of the West, a true American woman, my wife Maude, is this volume dedicated. BIOGRAPHY OF THE AUTHOR. "EXPERIENCE IS A BITTER TEACHER" It may be assumed that, to be successful in the practical side of mining, the operator must be of personal experience in many districts. There are few men better equipped to deal justly with the question of commercial mining than the author of "Rocks in the Road to Fortune." That the reader may know that his experience has not been, and his knowledge is not, limited, we have compiled the salient points of his mining and public career covering nearly every district of importance in the United States and Mexico. The Gotham Press, having for many years published his works, is competent to write such a biography. Henry B. Clifford was born in Louisville, Ky., April 28, 1859. He is the nephew of the late Nathan Clifford, formerly Judge of the United States Su- preme Court, and, in 1848, Minister to Mexico. He has inherited the democratic tendencies of his famous uncle. For many years Mr. Clifford has been a public advocate of mining, and addressed over 250,000 peo- ple upon the subject. In 1874, as a boy of 15, he II BIOGRAPHY OF THE A UTHOR was employed in the post office department in the city of Washington. He left that position and went to Colorado, on a United States survey, which marked the boundaries of the San Juan country. Being attracted to mining he entered upon a prac- tical life in the industry. For many years, Mr. Clifford was the business associate in mining of the late Colonel Robert G. IngersoU from whom he no doubt is indebted for much of his platform ability. His practical mining experience dates from 1875, when he was employed on the Pride of the West Mine, in Cunningham Gulch; the Highland Mary Mine; the Emma Dean Mine, at Eureka; the Crown Point; the Susquehanna, and other mines in San Juan County, Colorado. In 1878, he pioneered what is now known as Rico, Dolores County, Color- ado. In 1879, he was engaged In making a study of the Silver Cliff region of Colorado, and while there was employed as Superintendent of the Domingo mine, and gained experience as a mining expert in the celebrated suit between the Bull and the Do- mingo that was fought in the courts of Rosita. He made an investigation of the Bassick mine, at Ros- ita, afterwards going to Leadville, to study the blanket formation that had at that time commenced to be productive. In 1880, he made an examination of the mining regions in New Mexico and in the Chicicahua Moun- tains, Pima County, Arizona, operating on the Texas mine. He was also at Silver Citv on the ''EXPERIENCE IS A BITTER TEACHER'' III Seventy-six mine, and was employed in the Bremen mill at that place. In 1881 he was engaged on the Tough Nut and Grand Central properties at Tomb- stone, Arizona, and made his first trip into the State of Sonora in the spring of 1882, where he was em- ployed by Gov. Piscaro in mill construction near the town of Ures. In 1883 and 1884 he was employed by the now United States Senator, Stephen B. Elkins, and others, to make a report on the Guana- juato mines, of Mexico, and remained in that Repub- lic for three years, making, however, trips to the United States in the interim. He constructed the first American stamp mill ever erected in the State of Guanajuato. His report of that district has since been verified by the success that has followed the American mining invasion. In 1887, he became associated with copper operators, and was also identified in the French copper syndicate movement in America. He held large interests in the San Pedro copper mines, of New Mexico, and while there formed the acquaintance of Hon. William A. Clark, the "Copper King." In 1892, while Colonel Inger- soll was engaged in the Davis will case at Butte, Mr. Clifford made a study of the celebrated copper and silver zone at Butte, Montana. In 1893, Mr. Clifford prepared, at the request of President Cleveland, the statistics of "The Cost of Producing Gold and Silver," an article which has added much to his reputation as an authority on mines and mining. For years, he has been a public advocate of the mining industry, making his first IV BIOGRAPHY OF THE A UTHOR address on copper mines at the Grand Opera House, Harrisburg, Pennsylvania, in 1882. In 1891 he championed the interests of the State of Washing- ton throughout the East, appearing in all the large cities, and as a recognition of his services to Puget Sound, he was voted the freedom of the city of Spokane. He wrote several able articles on min- ing, and the production of gold, for the Boston Transcript. He made a thorough study of Yavapai County, Arizona, was successful in money matters in that vicinity; and, later, became a member of the New York Consolidated Stock Exchange; the Denver Stock Exchange; the Los Angeles Stock Exchange and the Salt Lake Stock Exchange. In 1902, Mr. Clifford made an examination of the Cananea Copper Belt in Sonora, Mexico. In 1906, he examined the Como or South Comstock section of Nevada. In the same year he is accredited with opening the second enrichment of Clear Creek County, Colorado. In 1907, he examined the Montezuma District of Summit County, Colorado; also the district around Monarch. Hon. John P. Jones, late United States Senator from Nevada, the highest authority on Com- stock mining, classes him as one of the ablest miners in the United States. His opinions are sought by the leading operators of this country, and not even his opponents, — which every progressive man must have, — question his remarkable ability. THE GOTHAM PRESS, New York. X o ^ <^ 6 c o us o O (U -^ 'S ."« a 0) (V) tn O " °1 - c g Oi INDEX TO CONTENTS: THE PUBLISHER'S BIOGRAPHY OF THE AUTHOR. CHAPTER I. Reasons for "Rocks in the Road to Fortune."— The necessity for more gold.— The sound and unsound systems of mine financing. —The few substantial results that follow sensational promotions. CHAPTER II. The great problem that faces industrial progress, is a larger production of gold profitably won.— The money metals now in our possession.— More development of our mineral lands imperative.— The misapplication of funds intended for mine development. CHAPTER III. The commercial miner. — A distinction between the Eastern pro- moter and the Western miner.— The three cardinal principles that must exist to succeed in mining. — The circulation of the results of bonanza strikes.— The world benefits by the miner's labors. CHAPTER IV. The importance of local conditions.— No mine can be very profit- able unless certain local advantages are at hand.— The actual needs of a district.— What a low freight rate means to a small mine; a difference of six dollars per ton in some districts.— Low Smelter rates in Colorado. CHAPTER V. The prospector and his influence on Western progress. — The early settlers; their reputation.— The prospect stage of the mine.— The way veins were formed; the surface croppings and the "blind" ledge. CHAPTER VI. The value of a prospect; the manner in which it is developed. —The commercial character of ore in prospects.— The modern pros- pector a scientist.— How ore lies in prospects.— Exaggeration of the value of a prospect. CHAPTER VII. Presenting the prospect to capital.— The different values placed upon prospects by the commercial and the non-commercial miner. —The right of belief.— How far can it extend.— The imsound side of prospect promotion. CHAPTER VIII. The folly of relying upon an assay in figuring the value of a prospect.— The losses that follow development, or mill construction, based upon assays of ore bodies.— Men whose stock in trade is the assay.— The men who do not want to know the actual value of their ores. CHAPTER rX. Ill-advised mill and smelter construction.— Heavy losses made by the inexperienced in planing mills and smelters before their ore bodies have been proven and the character of the mineral known.— The necessity of elaborate mill tests before construction.— Has a machinery house the right to encourage ill-advise mechanical construction simply to sell. CHAPTER X. Equipping the mine.— The needed mechanical appliances for the small, and large, dividend paying mines.— The (difference between equipping the small paying mine and the large one.— The expense attached to operating the famous California Mine of Virginia City, Nevada.— The folly of opening a mine with a few thousand dollars, the loss that follows lack of capital.— A trip through a great com- mercial mine. CHAPTER XI. Sensational advertising. — The men who use their energies to garble statements and misrepresent facts.— The heavy loss made by the public through purchasing stocks sensationally promoted through the press and by circulars.-— The responsibility of the newspaper. — The word painter who by garbling of language makes an advertisement say yes, when it really means no.— The class of promoters that use this form of misrepresentation. — The man who feels immune from punishment.— Special news items. — Mark Twain on a sensational mine notice. CHAPTER XII. Has exaggeration any place in mining?— Why tlie Western gambler resents the intrusion of the unsound promoter.— The effect of exaggeration upon the investor who does not reason.— The pro- moter who is immune from punishment.— The author's opinion of the unsound promotor.— The plea that investors want to gamble not borne out. CHAPTER XIII. Examples of unsound advertisements; a few of the many; is it intent or ignorance ?— Commercial miners not responsible for fool- ish statements.— Men make promises that when dissected show either desire to swindle or ignorance.— The public should reason and not conflict commercial mining with the unsound non-com- mercial operator. CHAPTER XrV. Unsound dividends.— Premature dividends.— A question as to the honesty of the men paying them.— The hardship worked to those who believe mines are upon a paying basis and buy the stock. —Examples of capitalizaticu.— Methods of the promoter of prema- ture dividends; exaggerated statements.— The danger to the industiy through injuring the reputation of the real dividend paying mine. CHAPTER XV. Examples of unsound dividend payment.--The ruin and sorrow that follows.— The impression conveyed by mining advertisements promising dividends.— Corporations with prospects paying dividends. —The influence of those who have been disappointed through pre- mature dividends.— Pointed illustrations as to the effects of buying unsound dividend stocks. — Guarantees by irresponsible men. CHAPTER XVI. The enormous commissions demanded by fiscal agents.— The heavy burden carried by mines through their existence.— The in- ability of the commercial miner to meet the demands of the agent. —The cases where they have demanded excessive commissions.— The amount of money that goes in the ground.— A law covering the amount of money to be expended in underground work. — The re- sult of the knocker.— Tricks of the commission broker to get your name. / CHAPTER XVn. Excuses that follow the failures.— Men prepare excuses, but the investor does not benefit.— The many excuses that men make to angry stockholders.— Excuses do not relieve responsibility. CHAPTER XVin. The worthlessness of local endorsement.- Men who get evi- dence as a protection to themselves in event of failure. — The char- acter of men who will endorse anything for a glass of whiskey.— Evidence that has no bearing upon the intrinsic worth of the mine. CHAPTER XrX. Abandoned mines. — The losses that follow their reclaiming. — Romance that is attached to the lost mine or prospect The great mines of Mexico.— The advance of the Americans into old districts. —The writer's loss in attempting to pioneer Guanajuato, a district now successful.— Water the enemy of the Mexican.— Leave the abandoned mine alone; sink a new shaft. CHAPTER XX. The experience of the stock broker of vital importance to the investor.— A man without practical experience has no right to ad- vise in mining investments.— Questions to ask the vendor of mining shares. — Imperfect knowledge of Eastern brokers. — Mining cannot be mastered through books.— Do not buy mining stocks without ascertaining the experience of your broker in practical mining. CHAPTER XXI. Incorporation of the mine or prospect.— The evils of high capi- talizations.— The penny stocks.— The price the investor pays when he buys low-priced shares.— The great dividend.— Mines with low capitalizations.— Questions to ask the promoter of low-priced stocks. —Inexperienced directors and questions to propound to them. CHAPTER XXII. The poor man as a mine investor.- The reason he is suscep- tible to misrepresentations.— His opportunities and needs.— His desire for wealth, the reason he invests in prospects. CHAPTER XXIII. Speculation in shares of little benefit to commercial mining.— The money does not find its way underground.— A speculator In shares should not class his efforts as "Mining."— Enormous losses made by speculating in prospect shares.— A list of stocks and their declines.— The right to ask "Millions" for a listed prospect.— The intrinsic value generally very little. CHAPTER XXIV. Copper mines.— The craze for copper shares.— The unsound statements relative to their product; value of the ore and the profits sure to come; character of ore and ore bodies. — A review of copper raining history.— Statement of the depreciation in the value of cop- per shares.- The grade of ore of the great praducing copi)er mines of the world.— Capitalization of copper companies. — The amount of money it requires to make a copper mine. CHAPTER XXV. The Equitable way to mine.— The rights of the investor above those of the promoter.— Reasons why the unsound promoter remains in the business. — His necessities.— The author's belief that the in- vestor should have his principal returned. CHAPTER XXVI. Ore shoots.- The foolish claims of the inexperienced relative to ore in sight— Different forms of ore bodies. — How ore is meas- ured.— Cross cut tunnels; their uses and frequent disappointments. CHAPTER XX\TI. How the big bonanza was found.— The ore body that gave to the world $114,000,000.00.— The marvellous rise of four men: Flood, O'Brien, Mackay and Fair.— Possibilities of other bonanzas. CHAPTER XXVIII. Great dividend mines.— The future relations between the miner and the investor.- Commercial mining.— Enormous profit possibili- ties of co-operation between the Idle money of the East and the mines of the West.— The strides of the lease system.— The solving of the labor problem in mines.- The future of the mining industry. — A square deal upon lines of truth. APPENDIX. Glossary of mining terms. ROCKS IN THE ROAD TO FORTUNE ROCKS IN THE ROAD TO FORTUNE. BY HENRY B. CLIFFORD. "The Destroyer of weeds, thistles and thorns is a benefactor, whether he soweth grain or not." What is here desired, is that a great industry may be better understood by those who haye for years believed they were mining, when in reality they were simply speculating in the most remote forms of actual commercial operations, those an- tagonistic to the views of the writer, say that though evils do exist, that it is not possible to weed them completely out. This may be true, but per- haps this effort may assist. No one ever really thought that Kentucky would practically weed out whiskey drinking. There are two ways to mine — the right way and the wrong. Experience proves that the right, or commercial, way has resulted in the United States making an annual production of gold, silver, copper and lead of nearly four hundred millions of dollars, and that there is a handsome profit in its extrac- tion. A review of what is considered the wrong way 1 2 ROCKS FN THE ROAD TO FORTUNE proves that it has resulted in discredit to the indus- try, and sorrow to those who, believing the repre- sentations made by inexperienced men, invested that which they could not well afford to lose. It may be asserted that the system of promotion, under which the average Eastern investor believes he enters mining, is unsound, and does not result in the profits which follow the efforts of commercial operators. One system brings profits to many; the other, profits to the few, and bitter disappointments to the many. If a system is, by its results, after years of ex- perience, shown to be unsound, the profits, beneficial to a few, at the expense of the many, and the reputation of an industry affected by the results of such a system, then it is the opinion of the writer that the unsound sys- tem should be abolished, and another employed, where the profits that unquestionably come from mining may be more equitably divided. The readers must judge the author, and form their own opinions as to his radicalisms or Impartialities. They will remember that it is the opinion of one man here expressed, and his arguments must be considered as Huch. The writer is willing to acknowledge his own faults and mistakes. He does not oppose the flota- tion of mines, or prospects, by men who tell the truth. That to which he is opposed is, promotions by men who are not miners, and do not understand the necessities of the industry, but in bold adver- tisements assume that their advice is born of exper- ROCKS IN THE ROAD TO FORTUNE 3 ience, when in reality they know little of the prac- tical side, and unblushingly make extravagant promises, which every commercial miner knows can- not, except by miracles, be kept; or promotions bj' men who, because they have a little smattering of mine information, class themselves as experts, yet are not sufficiently experienced and seasoned in the industry, which requires years of study and sound judgment to win, by steering clear of the rocks in the road to fortune. The author is not infallible — having in the past made his own mistakes, but it is by bitter experience that we learn. During the days when I was susceptible to the excitements that fol- low the discovery of a little rich ore on the surface, before we knew that every sliver in the earth that contained mineral was not a mine, when he believed that all men were comparatively honest; in the days before ripened experience taught him that there was only one way to mine, and that was to actually ex- tract ore and sell it, he made his errors. He placed too high valuation, trusted too much to others, with failure as the result; but with the passing years and closer associations with the commercial side of the industry, the trutli became plainer, and the rocks in the road were more readily avoided, and by now asserting what I found to be wrong is hoped to save others the experience. That there is no personal antagonism is shown by the absence of any pointed reference to distinct man, mine or district. Mining is a venture in which men risk for great gains, but then men risk in other ventures, where 4 ROCKS IN THE ROAD TO FORTUrE the returns are much less, and not as certain. But it is asserted that the risk in mining is not as great as the general public believes, and this belief has been generated through its losses, which would have, in many cases, been turned to profit had com- mercial mining been practiced. Out of the thousands of investors that have made mistakes in mining, there are not many that ever entered the actual industry. Their money seldom found its way west of the Mississippi river. They invested in the promotion side, with which the com- mercial miner, the man responsible for the world's metallic output, had nothing in common. The defenders of the present system of promo- tion, — that is, sensational advertising, promises of quick and big dividends, guarantee of_principals, etc., can quickly silence our arguments by showing even ten successful dividend paying mines now in healthy activity that have resulted from the thou- sands of prospects incorporated in the last ten years, publicly exploited in the press or by extrava- gant prospectuses, in which the people, eager to aid in the development of mining, and believing that they were in on the legitimate side of metal extrac- tion, through the rash assertions made, have invest- ed and lost millions of dollars; or, even to show us two gTeat mines that have for three years past paid, and is to-day paying |150,000 a year dividends — and there is a great number that made more extravagant promises than this — or even two of the sensationally promoted corpo- ROCKS IN THE ROAD TO FORTUNE 6 rations that have redeemed their marvelous prom- ises of profits to the extent of a continuous stream of dividends equal to 10 per cent, for the last two years; or, to show where a guarantee of divi- dends, or the return of the principal, has resulted as the investor was led to expect. The author, on the other hand, can show hundreds of individual in- stances, where miners, working on commercial prin- ciples with limited capital, have swollen the annual production of the states and territories by products extracted at a profit with limited capital. On the other hand, where actual miners conducted these ventures, the loss has been very limited. To my critics it may be said that I am myself willing to learn but give me fact. By those, who these views displease, there may be abuse of the author, but the argument of fact should not be lacking. Thjg^ mining industry is one of great profit and ^possibilities : tjiat^is, the actual busmess^^re ex- traction; and the aid of capital is desired to make larger productions. But I am confident that the sentiment of the commercial miners of this country is voiced, when it is stated that if it is necessary that the output of the mineral industry can only be fostered by the tears of the disappointed, the suffer- ings of the widow^s, or of poor men who have in- vested, expecting fortune, only to find poverty, then the quicker such "industry" dies an unnatural death, the better. I expect criticism from those interested in the avenue of promotion of which we do not approve. 6 ROCKS IN THE ROAD TO FORTUNE My personal life, my mistakes, and some of my suc- cesses, which perhaps are not fully deserved, are not at issue. Abuse is not argument. I am in favor of the public sale of Mining Stocks to small investors. Have sold them and may again sell them, but we want to see them sold on a truthful presentation of facts. I state facts, and ask for facts. The question and issue are plainly stated. Do the sensationally promoted mining enter- prises that have filled the i3ress of the United States for over ten years with glaring promises and appeals for capital to invest in so called mines give the in- vestor any reasonable profit, or add credit to the states and tenitories in which they claim to oper- ate? And do these efforts result in commercial min- ing, where profit is won from ore? Not a profit taken from one man to enrich another. Does the money paid for stocks actually go into underground work? Is the^s^st^ni of heavy capitalization and the payment of excessive commissions the true basis for mine promotion, and does it result in benefit to the industrv or the investor? 1 ISnoV of hundreds of deserving miners who have prospects of merit, who are willing to proceed to develop them with even as small a sum as $5,000, but who are unable to interest investors, for the reason that they_cannot compete with the publijdty promoters, pay the excessive commissions, or gain tTiT confidence of those whose experience in mining causes them to look with distrust upon every man seelffng the aid of capital. I look forward to the day ROCKS IN THE ROAD TO FORTUNE 7 when the distinction will be drawn sharply between commercial mining and sensational prospect promo- tion; when a miner or stockholder may take his collateral into a bank, and receive the same consid- eration accorded the contractor, merchant, farmer or railroad oflQcial. I make especial reference to no mine, district or individual. The whole subject is treated in the hope that the readers of this book may, in a measure if they believe my assertions, pro- tect themselves from the class that the commercial miner considers the industry's greatest detriment. CHAPTER II. THE PROBLEM THAT CONFRONTS PROGRESS. "Everyone who has studied this question knows that ail of our reserve should be in gold, for gold is our standard of value." — Congressman Fowler, Chairman of the House Committee on Banking and Currency. The United States has recently passed through one of the most dangerous crises in its history, in- volving a stringency in money so wide-sweeping, that for a period the banks of the entire nation vir- tually suspended cash payments, and issued instead artificial money, causing the middle class depositors to become panic stricken. A crisis that, if un- checked, would have wrecked for a generation the financial reputation of the world's richest nation. The quotation cited is to the writer the text of a subject which he has long maintained is essential to the welfare of our country: the increased produc- tion of gold profitably mined. Had our banks ample gold, there would have been no wavering of con- fidence, which was the direct cause of the strin- gency, through the hoarding of all kinds of money. Aptly has it been stated that the principal cause of the panic was that some one asked for a "real" dol lar. 8 ROCKS IN THE ROAD TO FORTUNE 9 Congressman Fowler further said: "We have to-day in the banks of the country about $12,000,000,000 of deposits. The banks hold reserves against this fabulous sum of about $900,- 000,000. Of this $900,000,000, about $200, 000,000 is in bank notes, a mere credit, a mere promise to pay. Therefore, you will observe, that, approximately, one-quarter of all our deposits, or nearly $3,000,000,- 000, is based upon bank notes, which are in turn based upon another credit, a Government bond, which is due in about twenty-five years. The depos- itors of this country now have $12,000,000,000 to their credit in our banks, and have a right, and should demand now, that thejreserve held to protect their deposits should be the real thing, gold coin, and not credit, not national bank notes.'' ""'^^^e Congress of which Mr. Fowler is a member, and also future sessions, may pass many emergency laws; but subterfuges, while they may retard for a time the inevitable storm, unless the needed gold actually exists in commercial form, there will always be that uncertainty, which was the real cause of the recent panic. There is only one sound solution: we must obtain more gold. We know that other nations will not lend us a supply to meet tem- porary emergencies, except at exorbitant rates; therefore, the only alternative is to more deeply ex- plore our mineral resources. For years, upon many platforms, the writer has asserted that the annual increase in our home production of the money metals was not adequate to meet the growing de- 10 ROCKS IN THE ROAD TO FORTUNE mands of our wonderfully increasing; prosperity, and that for awhile we could expand upon credit, just so long as the creditor did not ask for payment in act- ual coin, but that, if the creditor, who in America is the depositor, should lose confidence in our ability to sustain the claim of a gold basis, then the crash would be as inevitable as the law of gravitation. For Credit is the only Capital on earth. First, the stringency of 1893 brought our finan- ciers to a semi-realization of this truth, — but by skillful bank-piloting, clearing-house certificates, and other forms of emergency money, we weathered that storm. But this last tornado was more far- reaching; the stringency was greater; and, call it by any name, there was practically a total suspen- sion of both paper and specie payments in New York, Pittsburg, Kansas City, and Chicago. Any country, ostensibly upon a gold basis, sleeping in security of the people's confidence, never realizes the scarcity of gold or silver until the demand for a redemption of credits in actual coin. All the laws we can make will not add one dollar of gold to our supply unless the miner digs it from the earth, and the refiners change the raw material of money into the bars of mintable assay. There is only one solu- tion to the problem which confronts us, as well as other nations. We must mine more gold, and in mining it, make it profitable to those who engage in its extraction; otherwise the miner or his partner, capital, will not continue in its labor. This brings us to one of the great problems ROCKS IN THE ROAD TO FORTUNE 11 which face the West: the elimination of the unsound promotions which do not mine profitably, and add nothing of value to our productions. Yet do add dis- credit to the man who is actively engaged in com- mercial mining. The United States is wonderfully rich in mines, of gold, silver, copper and lead; and, each year, science, industrial economics, and local conditions make a lower grade of ore profitable. Considering the money actually invested in commercial mining, the profits it returns to the investor are greater than from any other avenue of industry. Mark you, I say, "commercial mining," for I do not purpose to father the element which, while claiming to mine, does not. There is little doubt of the ability of our mines to supply all the gold the country needs, and even to help out other nations, provided the commer- cial miner controls the mining end, and the capital intended for mining be actually so expended. The problem is, how to make its extraction profitable to those who invest in the venture, which is necessary before gold can run current in the wide and sweep- ing river of trade. To mine the needed gold, we must interest new capital, for that which is now successfully employed in mining cannot be spared from its field of en- deavor. The present production must be sustained. We must gain, not lose, while seeking to increase our stores by new ventures. To attract new capi- tal, we must offer profitable inducements. If cap- ital, which is willing to assist in mining new gold 12 ROCKS IN THE ROAD TO FORTUNE and silver, meets with success, then capital remains in the industry. If, on the other hand, the eastern investor meets with failure after failure, he, natur- ally, classes the extraction of metals with unprofit- able ventures, and, withdrawing his support, as well as the support of his friends, progress is then retarded. We must have more capital to open known ore bodies, and establish mechanical economies, to make a lower grade of ore valuable. On all legitimately employed capital, the industry can return heavy profits; but there should be a system of investment which should protect the capitalist, and cause his money to be actually employed in mining. It is not asserted that there is a lack of actual invest- ment, for there is a great and growing interest. The people believe in our mineral resources, and at every opportunity they invest in what they are told is mining. If even one-half of the money that the American buyer believes he is placing in the legit- imate avenue, was properly applied to ore develop- ment, upon commercial lines, the gold product of our country last year would have been fully $20,- 000,000 greater. The practical miner does his part, but the non-commercial miner shirks his responsi- bility, and a large part of the money intrusted to him seldom leaves the East. The West wants, and is eager, to do its part. It invites capital; but it does not wish to be credited with that which it never receives. It does not want to be held responsible for the errors of men who are R0CK6 IN THE ROAD TO FORTUNE 13 speculators, not miners. The commercial operator rebels at being stigmatized as an undesirable indus- trial citizen, by those who, thinking they are mining, are simply gambling, or under the leadership of men who must be knaves or fools. The mistakes of the East were, in a large measure, the result of unrea- sonable rapacity. Until the last crisis, the commer- cial miner was not considered important; his mod- est efforts — which did, however, result in our great metal product — was overshadowed by the pompous, self-asserting promoter, who, to gain his end, almost destroyed the reputation of the American miner for honest intentions. A commercial operator, with his plain statement of facts regarding risk and profit, seemed so insignificant and uncertain, when com- pared with the bubble-blown non-commercial broker, with his positive ^'Millions to-morrow, for Ten Dollars To-day," that he could not obtain any courtesy or favor: it is believed that the day has come when the investor is awake to the fact that he has not yet met the real miner, the producer. If the writer can, by his efforts, assist in drawing the line between the commercial operator and the non- commercial vender of mining stocks, he will feel that he has done a little for the industry that has been kind to him for thirty-one years. Papers have offered me the use of their col- umns, but a paper article often passes with the day, the subject is too vast, consequently this book. He does not wish it to be under- stood that he is averse to the sale of mining stock. 14 ROCKS IN THE ROAD TO FORTUNE for he sells it himself. It is realized that incorpo- ration is really the only safe and sound method of mining, for the risks and benefits are scattered among the many, as they should be. The argument is that the money really intended for mine develop- ment should actually be expended in underground work and needed equipment, and that men who really know should do the mining; and where men are engaged in selling stocks, they should tell the truth, without stretching a little fact to a painful length, that the buyer may know the risk he is tak- ing, and be given the personal right to, by using his own reason, determine if he desires to speculate or invest as the case may be CHAPTER III THE COMMERCIAL MINER. There are so many different avenues called min- ing, by the inexperienced — so many rainbow char- acters that claim association with America's great- est industry, that the commercial miner — the man who is actually responsible for our great mineral output — is seldom encountered by those who, year in and out, invest in what they are led to believe are sound mining enterprises. The Western miner is among the most honorable nl Tpen. He is not to be classed with those who may, for want of a softer word, be termed the parasites of this magnificent industry. Commercial mineri? are those who win fortunes from nature's treasure vaults by energy and hardships, thus causing the mining industry, by its actual production of gold, silver, copper and lead to be classed with the back- bone of America's progress and wealth. Such men have nothing in common with those who do most of their ore extraction in eastern cities, through sen- sational paper promotions. A distinction should be sharply and clearly drawn between the two. One is a miner, who actually digs in the earth searching for and extracting metal ores; the other, 16 16 ROCKS IN THE ROAD TO FORTUNE a private individual, who gives advice upon a subject which he has not mastered. The non- commercial miner reaps his profit — through heavy commissions and promoter share holdings, which they often sell before the prospect has paid its western obligations — by promising enormous re- turns before he begins to mine or ship ore. He is quite sure to, but does not. In the great majority of cases, while he sows, his seed does not ripen in the harvest that brings profits, honestly won from nature. Gold, silver and copper miners are speculators in the sense that coal oper- ators and oil drillers are speculators. That is, they venture with nature, with a capital of Experience; but, unlike any other industry, the wealth they woo, and often win, is the soundest of all. It is imperishable. The finder enjoys its possession, then it passes along through coming ages, bringing hap- piness to countless thousands. Fortune may give vast stores of it to one man, yet it all belongs to the world to-morrow. There are four sources of wealth: the sea, the forest, the farm and the mine; and of them all that of the latter is more important; for the product of the former three is perishable. With the wealth of the mine, all the others can be purchased from other nations. In fact, it may be said that to our minerals may be attributed the unparalleled progress of America, The precious metal extracted from mines is nearly always in circulation, either through the arts ROCKS IN THE ROAD TO FORTUNE 17 or as money metals. The miner enjoys the satisfac- tion of knowing that he produces a new, clean wealth. Its possession does not carrj^ the thought, common to the quick acquirement of wealth in gen- eral speculations, that the holder is rich and happy because some other of the human race is poor and sad. But even though the miner, over night, springs from poverty into a Croesus, no man is more entitled to undisputed possession of his fortune, for it has been extracted from a source where no wealth known to man before existed. He has won the raw material of money from a source that was hidden from human eyes, yet this product, when manufac- tured into money, adds strength to nations, creates the sinews of war, is the herald of smiles, the fore- runner of laughter, and the prosperity of the race. The harder the times, the more important be- comes the miner, for his product is the medicine that cures — if not "all the ills that flesh is heir to" — the ills of depression: such as the stringency of money, which we have recently experienced. The extraction of large amounts of precious metals has frequently saved a nation's credit: and Credit is the air of a nation's lungs: without it, it stifles, declines and falls, as fell old Rome in the days of the degenerate Caesars. It was the discover^' of the Comstock Mines, in Nevada, at an opportune time, that en- abled our country to live through the financial dis- tress which followed the Civil War. The Eastern investor knows so little about com- mercial mining, or of the miner who creates the 18 ROCKS IN THE ROAD TO FORTUNE wealth, that it is hoped in the future there may be a better understanding of the industry, and of those responsible for its greatness. This is the author's aim. The writer does not attempt to show the little he may know of geology, by the use of uncommon words and phrases, which only those well read in the sciences comprehend. So many have lost money, by following the advice of men who do not know, or are interested in unsound promotions, that it is decidedly of inter- est to commercial miners, who are themselves at times seeking the aid of capital, that the rocks in the road, and many of the mistakes of the past, per- haps hereafter may be avoided; and if the investor will reason, he may be guarded against misrepre- sentation, and make himself a fortune, by entering mining upon commercial lines, the same as he would enter any other broad way of industry. To that end this is written, for the plain, old-fashioned man — young though he may be in years — who wants plain, old-fashioned language, which he under- stands. This work is not for those who do, but for the thousands who do not, know. The many millions of dollars of mining profits accumulated each year are won by labor and com- mon business sense. There are still vast sums to be wrested from cunning old Dame Nature's hidden treasury vaults, and each day the commercial miner makes success more positive. Money is needed to build machinery, open ore bodies, and market product, that new millions may be made. In the ROCKS IN THE ROAD TO FORTUNE 19 broad deep field of mining there are few, if any, ex- treme philanthropists. The miner is willing to share generously with those who supply the needed capital; but I never knew of a legitimate miner to spend thousands of dollars in the daily and weekly press with an honest desire to give ten dollars in a few weeks for each dollar invested with him to-day. The Eastern investor seldom meets the true West- ern miner on the question of where a fair risk for a large gain is discussed upon business lines. Their rapacity causes them to turn aside from the sound, and attentively heed the unsound. Gold, silver and copper mining is as necessary as the digging of coal, but it is not all success. Mines; are never found. The indications are discovered, but the bullion producer is created only by the applica- tion of capital skillfully used. Great mineral dis- coveries are worthless until opened, and the wealth of their ores freed by scientific application of fire and water, which turns the raw material of money into the bullion convertible into coin. Science applied to mining is simply organized com- mon sense, utilized invention and profiting by expe- rience; and it is as essential to couple investment with discretion and seasoned knowledge as it is to determine that ore exists in commercial bodies. When gold and silver mines are of intrinsic value, they are among the greatest of profit earners; but conducted without well-applied capital and exper- ience, the same obstacle will be encountered as are found, in similar circumstances, in other business 20 ROCKS IN THE ROAD TO FORTUNE undertakings. The investor must learn that no venture is sure; and that "Sure things" are likely to be unsound. Rich mineral discoveries made to- day cannot be turned, in the very nature of things, info crg^t to-morrow. Only by skill and the expend- iture of money are the enormous dividends credited to mining made possible. Every commercial miner or well-informed financier is aware of these facts, and it is to those who have much to learn of mining that these remarks are addressed. When they reason, they will perhaps understand that, when men offer extraordinary inducements, there is a per- sonal want to be supplied — by the investor's money, and that when things are gratuitously given they are often the most costly of all gifts. In the golden West, where the ore is actually ex- tracted upon commercial lines, we seldom hear of serious disappointments among those who mine with experience and upon economic lines. The mis- takes are brought to their notice through some unfortunate Eastern investor, who believed that the digging of gold and silver was simply the applica- tion of capital to some vein or deposit supposed to contain ores in commercial quantities, and that mil- lions of profits were as good as banked. To this class of investors I say that, his ill-advised operations should not keep him from entering the real realm of mining. It is hoped that he may be won to the ac- tual industry, and share the riches that follow the mastering of the combinations which hold the wealth that nature has secreted, in her sub- ROCKS IN THE ROAD TO FORTUNE 23 terranean pockets; for despite ill-advised losses, the dividends from commercial mining are enor- mous. Greater than the dividends upon the entire system of railroads represented by dividend stocks. There are only three things to make mining com- mercial. But the fact that these three things must exist before profits can be reaped is not generally realized by the inexperienced, until after the pur- chase of stock has been made. The inexperienced buys — then he investigates. He should reverse that plan. Those who buy upon impulse, fearing they may not be in position to buy to-morrow, are, as a rule, sure to lose. To be successful, take time — but not too much time. Keason, reflect, weigh. Do not let your impulse run aw^ay with your judgment: and do not believe all the sensational promises made by vendors of publicly promoted stocks. The three cardinal necessities in mining are: Ore^ in commercial bodies well opened; good local condi- tions; practical management. Without these, there can be no success. Prospecting is the highest form of mine speculation, but that branch of the industinr is only the beginning. Proniotion is the persuasion of capitaj to venture. All mining is a venture, until success stamps it commercial, as all men are fail- ures, until they are successes. Mining is always termed speculative, on account of the risk and the great gains; the risks, however, are fast being eliminated. Ore, in known commer- cial bodies, is only the basis of legitimate mining. ^Vii ^2 ROCKS IN THE ROAD TO FORTUNE All the arguments of brilliant orators, gifted writ- ers, pages of sensational promises, and historical citations of the success that follows success, will not place a ton of ore in the barren vein. Invest in prospect, as that is necessary, in order that the in- dustry may grow, some of the largest profits lay here; but realize that it is a prospect, and worth only a prospect's figure. Do not believe that every prospect will in the end prove commercial. If you wish to eliminate much of the risk, and are satisfied with from 10 per cent, to 25 per cent., then be sure you are in on the commercial side. But do not pay for a prospect the amount you would pay for a mine. A mine has a value proven by its actual pro- duct CHAPTER IV. TRE IMPORTANCE OF LOCAL CONDITIONS. Such improvements have been made during the past ten years that it may be said that the industry has just crossed the threshold of that which is the only true avenue to success — commercialism; as once passed steam, electricity, the manufacture of iron and steel, and the improved conditions are largely responsible for it. The advent of Eastern men with mercantile training has brought to the west practical economy, and they are assisting towards the commercial end. The weighing conditions which follow the success- ful upbuilding of any line of commerce or trade, we owe to them. Thus, mining to-day bears about the same relation to the efforts of thirty years ago as did the Elias Howe sewing machine of 1846 to the mechanical masterpieces of to-day, made indispen- sable by the expenditure of thought and necessary capital. To-day, mining ore for a profit is a business, and our ablest men are active in making valuable that which was worthless a few years ago; conse- quently, the district that bids for the favor of men who want profit from ore must be in a position to show results — not blind anticipations, or unsup- ported assertions from irresponsible men. 23 24 ROCKS IN THE ROAD TO FORTUNE Those who have failed in mining ventures may now see the rock upon which their hopes were split, for believing too implicitly in those whose interests were purely selfish. They can now, however, succeed, if they will profit by their bitter experience. Ore, the only source of actual wealth from mines, is found in veins and deposits. It does not grow upon rocks, as some are led to believe, and is seldom above ground, except where the vein cropping carries high values, which is the exception, and not the rule. Years ago we knew, comparatively, very little about mining geology, and many costly mistakes were made. But the investor can turn those errors to his advantage. Fortunes are now in the making upon the same properties that years ago brought losses and sorrows to their owners. Provided there is ore in the mines, but it is only by the change in conditions that such losses can be turned to profit. The advent of a railroad has been known to change the whole aspect of a district, from a commercial standpoint. So the investor should know that the conditions are favorable, even though his ore showing is good: for, unless local conditions are right, $20 ore may not be as valuable as |10 ore in more favorable localities. That this may be forci- bly illustrated, I will say that in some parts of Col- orado, a six dollar ore is very profitable, in Cali- fornia, a four dollar gold ore is commercial, yet in (me of the Western states, to which inexperienced capital has been very generous, even a ten dollar ore is worthless, for the published freight rate on ROCKS IN THE ROAD TO FORTUNE 25 ore were as follows: To enter San Francisco, Salt Lake or Denver, all ores under |25 value was charged $8 per ton, on |300 ore the rate was |22 per ton — and after this from 3 to 5 per cent, of the value of the ore was added to the freight charge. Thus the advantage of conditions is shown — as the freight charge from Georgetown, Idaho Springs, Central City, Leadville and Montezuma regions of Colorado is only $1.75 per ton upon |25 ore. In years to come the district referred to may, by the improvement of conditions, enjoy lower rates also. Commercial miners figure upon conditions as of almost equal importance to ore values, unless the mineral should be of the "picture'' character, which is of rare occurrence; the ore being, for a limited area, then so rich that any expense of extraction or treatment can be met. But in such rare cases, and they are very rare, there is no necessity of inviting the public to buy shares in the mine; and where men offer to sell stock in such mines at a low figure, it is usually because they do not believe that the ore will hold out. The general run of mines which are classed as commercial are low in grade; from |7 to $15 a ton, with first class smelting ore averaging about $30 a ton. Therefore, before great tonnage mines can be made commercial, there must be mills, smelters, rail- roads, and power houses; and they are never under- taken until that is first known — which the inexper- ienced promoter studies last: The actual size and character of the ore bodies and the local conditions. The merchant that contemplates the manufac- 26 ROCKS IN THE ROAD TO FORTUNE ture of products in a new locality first looks at his transportation facilities and labor conditions. They being favorable, he figures upon the cost of his supply of raw material, and the price obtainable for his manufactured product. The commercial miner does the same, for gold and silver are manufactured, just as is a stove, or any other product of metals. If local conditions are against the cheap extraction of ore, and the marketing of the same at a substan- tial profit, then the district is for the time being classed as non-commercial. If there are small streaks of high grade ore, some promoters will, how- ever, keep the section in the investor's eye. The casual buyer, reading the lurid promises of "Millions of dividends!" which only the experienced operator makes, does not often realize that certain conditions must exist before even moderate profits are possible. If he insists upon a statement of fact relative to the positive supply of mineral, the home or central market for the same, and the vital trans- portation feature, the answers should be plain, so that any man may understand them, and not vague, as is usually the case, when the actual conditions are not favorable. The assertion that a railroad is to be built next year does not always mean that it will be so constructed. Some sound reason should accompany the statement. There is no lasting condemnation in being classed with non-commercial districts, as all dis- tricts were at some time in — more or less — the same category. The fault found with publicity flotations ROCKS IN THE ROAD TO FORTUNE 27 fostered by the inexperienced, is the blinding of the investor to the actual fact, the promising of profits, when the conditions at the time may be so averse that no man can make money without the self con- struction of roads and mills, which would necessi- tate the expenditure of millions of dollars. When inadequate facilities are at hand, the fact should be stated: then the investor takes his chance with his eyes open, and a knowledge of the obstacles ahead; then when successful, through the advancement of conditions, his profits will be proportionately large. Therein lies one of the principal speculative features of mining — the improvement of conditions in a min- ing camp. Those interested in the sale of mining stock based upon prospects claim that if the ob- stacles are made clear that there will be but few sales. This is not the fact, if the valuation on the prospect is reasonable; the investor will risk for the chances of reaping the great i^roflts that come to the successful prospect when the conditions im- prove — but naturally, the buyer will not pay the same price that he does for a prospect located where conditions are more favorable. There are many districts to-day on a commercial basis that were prospective as producers even five years ago. Conditions change, and the profit market changes with them. As they improve, we find the miner of to-day reaping profits from material which was considered non-marketable even ten years ago. Each year a lower grade will be made commercial. The investor should know the facts, in order that he 28 ROCKS [N THE ROAD TO FORTUNE may reflect and reason upon the time when condi- tions will so change that profits may be confidential- ly looked for. A poor man will not then mortgage his home to buy stock in a prospect that cannot, by reason of imperfect conditions, be commercial for years. Some of the more widely advertised districts are so lacking in water, transportation and smelting advantages that they may not be commercial for ten or twentj'^ years. Those conditions are recognized by the experienced, but are seldom made a part of the public appeal for capital by the class of pro- moters that pay more attention to stock sale and their commissions than they do to ore extraction, the reputation of the industry, or the sorrow of those who may lose. In the early days of mining — in some of the dis- tricts nov.- recognized as the soundest commercially — the conditions were not so favorable as at present; and, while there was rich ore at the surface in those fissures that gave evidence of being mines, the cost of treatment was so expensive that fully eight- tenths of the vein contents of some of the best pro- ducers in those camps were uncommercial, and un- mined until with the past few years. A big Bonanza is not, as proclaimed, always rich ore. Some of the largest dividend payers are low grade. The average value of the ore extracted from the great Comstock Mines of Nevada was under twenty dollars per ton and the average value of the rich mines of Butte, Montana, is less than $10 per ton. Admitting that the mine has ore of a marketable ROCKS IN THE ROAD TO FORTUNE 29 grade, with the bodies well opened, the vital ques- tions should be asked: Have you plenty of water flowing naturally? Have you timber? Have you a railroad? Have you a market near at hand, and what is the freight rate per ton on ore to the smelter, or the wagon haul to the mill, if one is owned, or to the custom works? And after meeting all fixed charges, will the ore leave a sound net profit? Commercial miners ask these questions; the holder of even ten shares should ask them. Lack of local conditions often make failures of mines that years afterwards prove bonanzas, but the facts of conditions should be known, that the buyer may fig- ure upon the time when he is to expect returns. There is no reason why mining should not be car- ried on in sections where conditions are not perfect, for by taking the venture the purchase price should be small, and gradually the values increase with the improving of conditions. Some of the largest min- ing profits are reaped by buying and waiting, but they were positive of the grade and extent of ore bodies. CHAPTER V. THE PROSPECT, THE PROSPECTOR— HIS IN- FLUENCE ON WESTERN PROGRESS. The prospector is the pioneer of mining. To him is due the credit of the magnificent results that fol- low the commercial extraction of ores and metals, amounting, in the gross, from precious and base product to over four hundred millions of dollars per annum; without the prospect there would be no commercial mines; every large producer that is to-day adding its quota to the world's needed sup- ply of metals was at one time a valueless seam in the earth, its metallic contents made commercial by the energies and capital of those who develop the prospectors discoveries. The West was first populated with the adven- turous spirits, who followed the trapper and came from "no man knows where." Their antecedents were not questioned; in many cases they were known simply by some cognomen. They became a part of the country and were a step in its advance- ment. Writers have commented upon the character of the roving spirits that blazed the trail for the army of progress that followed with their civilizing influences; it has been claimed that many were so- 30 ROCKS IN THE ROAD TO FORTUNE 31 . fifteen years ago. While the prospect is the indication of the mine, and is the starting point for the development of the same, it is but the first step in the industry, and in the prospect is found the "Saragossa Sea of derelicts mining ventures." Fully thirty-five per cent, of all the loss attributed to gold, silver, lead and cop- per extraction can be laid to the mistake of believ- ing a prospect was a mine. If the exact position of the prospect, in the various branches that combine to make mining commercial could be understood by those residing far from the mines, and who ar« called upon to invest in the development of the same, a vast majority of the disappointments that follow Eastern effort to reap the natural wealth would be eliminated. On the question of the prospects we ask extend- ed indulgence; it is the germ that is responsible foT the disease we hope to cure; that is, the elimination of the corporation, with its widely sold shares, upon the assumption that a prospect is a mine and the unsubstantial estimates made upon the earning power of the same. As this is written we fancy w^ hear those of a scientific turn of mind — students of nature, engineers and the well-read investor — say- ing, "How simple — a mere kindergarten." Thi» work is not intended for those that know the trutb and are as well able to draw the distinctive line an the most experienced miner. They are not often the 36 ROCKS IN THE ROAD TO FORTUNE victims of misplaced confidence. The writer intends this to be the plainest primer that it is possible for him to write; to tell the facts in homely language, so that even the slightly schooled may understand. Those who know do not require to be told. The writer hopes that it will benefit those that do not anderstand the distinction between the beginning and the end of mining ventures — the prospect and the dividend-paying mine. It is not proposed to enter into a lengthy de- scription of why veins contain minerals or why cer- tain rocks lay flat and others tilted on end. The reader in search of that class of information will find it ably presented in many worthy scientific publications, such, for instance, as the "Mining and Engineering Journal," "Mining and Scientific Press," "Ores and Metals" and the works of Kemp, Richards, Beck, Rickard, Peters and Weed, or the comparatively more ancient works of Baron Von Humboldt; all up-to-date commercial miners read these works and know, but the layman does not read them. I want the man at the plough, the trades- man, the mechanic, the artist, the saleswoman and the clerk to understand in the plainest language that there is a distinct difference between a pros- pect and a mine. That they may understand that certain things exist; a description of why they exist is not to be attempted. The casual investor in a mining proposition has not the time to study the scientific beliefs of why the mine was formed. What he wants to know is that the mine exists, and that ROCKS m THE ROAD TO FORTUNE 37 which he desires, profitable ore, is in the veins or deposit. Many millions of years ago, when the world was supposed to be undergoing upheavals, contractions, and the surface opened by the cooling processes, which in certain parts of the globe were more pro- nounced than in others, especially where the up- heavals of mountainous regions were the heaviest, as the molten mass thrown up from the bowels of the earth settled and the earth cooled, there were opened cracks and fissures, just as you see cracks and fissures open in a muddy bed after the waters have receded and the sun has dried the surface. Some cracks and fissures extended thousands of feet deep; others only to a few hundred feet, while some were less than one hundred feet in depth. Some pitched one way, some another, but generally the great cracks in the earth's crust had a tendency to strike north and south, though often large crev- ices struck east and west, cutting through other crevices that had a northern strike. On the ques- tion of exactly how these cracks were made sci- entists differ, but that is not a part of this work. These cracks, crevices and slivers exist, and they are filled with mineral contents. Some of them are very large and have a direct straight strike, with their feeders extending out on each side, just as though a pane of glass was dropped on the floor, where one great crack will be extended the full length of the pane, and from it will radiate hun- dreds of smaller cracks. Thus the great mother 38 ROCKS IN THE ROAD TO FORTUNE veins of the districcs were formed; thus the worth- less prospects found their origin. Later on it is claimed that hot waters, charged with mineral solutions and salts, flowed back and forth over the surface of the earth, aud through these open fissures, until the precious metals were placed in the so-called treasury vaults, commonly called mines. Others claim that the metal was forced up from the molten mass in the centre of the eartli; the layman has not the time to consider or to draw the distinction between which theory !■ right and which is wrong. That which interests him is the fact that the precious metal exists; he wanti to understand that in the forming of the metallifer- ous veins that nature placed larger bodies of rich ore in some fissures than she did in others — some medium in value, others absolutely barren, yet all filled with silica or some evidence of metal value, and that he has the opportunity of owning all or a part of the riches. As these conditions changed and the earth cooled and the hot water stopped surging through the veins, the crust formed on some of these cracks and they stand above the earth like a guide post, plainly visible to the eye — the beckoning finger of nature to the prospector. These are called croppings, and where they exist the labor of the prospector is com- paratively easy, for blind ledges and deposits have no croppings, the abrasion of time having worn these finger-marks of nature away, and the veins are often covered with slide and dirt, sometimes to ROCKS IN THE ROAD TO FORTUNE 39 the depth of a hundred feet. Here the prospector encounters his diflQculty. He is obliged to find the vein by a study of the surface conditions, float rock, etc.; after he is convinced that a vein exists some- where in the immediate vicinity, he starts deep trenches to what is known as bed rock and enters upon a search for the lode, which, when encoun- tered, he is able to discern by its peculiar character. In every mining district there is hundreds of these results of upheavals, but in all districts there is few gi*eat commercial mines. Yet nearly all these min- eral indications show a little evidence of value, suf- ficient to encourage the prospector, but the exper- ienced pass over that, which, those not well versed, eagerly pounce upon and hold for years. The map facing will give an idea of the number and form of fissures, dykes, deposits and slivers as they exist, in nearly all districts. By the order of things it cannot be expected that all of them will prove of value. Only by the opening of the ground can the value be actually proven, thus the prospect stage, while the first step, is naturally most risky of all. Yet the great mines were the result of opening prospects, the value of the mine increasing with its showing of ore. The reader may consider that the sketch of the lodes, slivers, and spurs is a little exaggerated, but it is not; a glance at the location map of any camp will convince. Following is a map of the noted Tonopah district of Nevada, reproduced, not as a reflection, for that camp is entitled to proper 40 ROCKS IN THE ROAD TO FORTUNE dignity, won by an honest production of metals from its central zone. The author's intention is to prove that, from the locations made by miners in any camp, where even one rich ore shoot has been opened, the crossing, overlapping system shows con- clusively the intricate vein or sliver system. In other camps the surface maps show even more locations, thus it is plain that the experience of years in many camps, is necessary, for the pros- pector to reduce his risk, by locating that, which gives the least possibility of being barren. CHAPTER VI. THE DEVELOPMENT AND VALUE OF A PROSPECT. In depositing the gold, silver, copper, and lead in these Assures or slivers, nature has followed her own ideas and, notwithstanding that we have made great advances in the study of geology and metallurgy, we have never yet been able to fathom the secrets of nature by merely looking at a mine, even though it may be well opened. We, of course, know more to-day than we did twenty years ago, but we are still sadly lacking in perfect knowl- edge. It is by experience that we profit, by drawing deductions from what we have seen in other mines. We thus pass opinion upon what we see in new ones, and weigh the possibilities of success, through com- paring what we know existed in the successful mines, and applying the experience to that, which we hope will be a mine. The reader can understand that a study of many districts is necessary to make the miner fairly capable of passing sound opinion. It took years to advance thus far, and the advance- ment was only made possible by development. One district has its characteristics and in the adjoining 41 42 ROCKS IN THE ROAD TO FORTUNE district there will be different ones, so that the ad- vanced prospector is the one who searches for lodes, fissures and crevices, equipped with a knowledge of what existed in other sections. The inexperienced have an opinion that all mines are good, if they show any surface value, and that it is only a question of deep development to increase the supply of ore and its value; but nature has always followed her own plans. In some of these veins, commonly called the mother veins, she has placed great wealth, the ore bodies often ex- tending from the surface unbroken to a great depth and for a long length along the vein; but while one claim of 1,500 feet in length will be rich, the ad- joining property on the same vein will be treated niggardly in nature's gifts. In some veins the ore is placed in small but frequent bodies; in others, she places one body, and never are there others found. In nearby veins there will be many continuations of ore bodies of a commercial character; in others, large bodies of ore that are commercially worthless. Some veins will carry nothing but gold; some noth- ing but silver. Then, there will be a compounding of gold, silver, copper, lead, arsenic and bismuth; Id some, more gold is placed than silver, then the sys^ tem is reversed. In some veins or deposits she scat- ters the metal so widely that, although it is there, and good assays can be obtained, it is an impossible task to gather it into profitable form by modern science. Consequently, the prospector, even after he finds a crevice, is a subject of nature's whims. Some ROCKS IN THE ROAD TO FORTUNE 43 people call it "blind luck," because no man can tell positively from the surface indications of a prospect what it is going to develop into. A great many prospects have rich ore at the sur- face, and it continues down in commercial form to a depth of 300 to 400 feet, and then the body gives out and the mine becomes non-commercial. In Clear Creek, Colo., the silver mines around Georgetown and Silver Plume showed rich ore at the surface but, a» greater depth was gained — while many of the the mines are still commercial — the bonanza ores were displaced by lower grades containing zinc and lead, though still made commercial by the lowering of smelting charges and the improvement in labor saving devices. The writer is to-day treating cus- tom ore from Georgetown in his mills at Idaho Springs, that ten years ago was thrown over the dumps as worthless, the system of concentration not having been then, as perfect as it is to-day; yet from even the old dumps men are now making profit. After a prospector settles upon a discovery as worthy of his efforts, he proceeds to comply with the law of the United States, which calls for the dis- covery notice. In this Jlie prospector lays claim to 1,500 feerafong the vein and froni,T5fca 150 feet on each side of the crevice. Within sixty days after the location, he is obliged to sinEa!i9^foibtliOle, either by shaft or open cut; he is then called on to make record of the location ia tHe^County Recorder's of- fice, and this gives him possessian^ of the property, but each year until the propertv .i^^mtaate^- byjiiie , ^*"^^0ieBS9;» 44 ROCKS IN THE ROAD TO FORTUNE United States Government, the miner is called on to do what is called "Assessment work," which is the expenditure of |100 per annum upon each property. The experienced prospector, if there is pay ore shown, proceeds to take it out. He erects his wind- lass, which is suflflcient for the first 50 feet of depth; then he makes cuts along the vein and extracts the ore to the best of his ability. This he sends to the smelter, which pays him a fixed sum, after deduct- ing smelting charges. If the ore is of low grade, he develops in the hope of striking high grade ore, or by opening sufficient of the ground to justify the erection of a mill to treat his product. In all districts, there are hundreds of these pros- pects, and until they are explored no man living can positively tell which of the group will be the bo- nanza; unless rich ore in commercial bodies is shown at grass roots; consequently, until the human race starts its battle to win the wealth from nature, all of these veins, slivers or deposits, are equally worth- less. As each discovery is tested, the value of the prospect increases in accordance with the increase of the ore showing and, perhaps, out of 500 locations — all of them metal stained and with metal contents visible — there will be won four or five great com- mercial mines that contain the prizes nature has placed deep in their hearts to reward man's energy. Yet all of these fissures and slivers have their champions. Some of the crevices may be but a few inches wide; some measure a hundred feet; yet from the day of the surface discovery, the ownership of ROCKS IN THE ROAD TO FORTUNE 46 each inspires hope, and men of vivid imaginatioB extol the worth of these undeveloped slivers in the earth, as of enormous value, until it is aptly said that ^^ A prospect is a hole in the ground, owned by a li_ar,:iJ1 ■ ^ ^ — -~— — ---.««««.^ It is a remarkable thing that the owner of a mineral discovery cannot often accurately describe it. If the vein is four feet in width, it is often called four and a half feet; if there is five inches of fifty-ounce ore exposed, when the description is made in some little mining town, it is called nine inches of seven^ounce ore; and so it runs. The very best of the minin^^opulation are giving to exagger- ation. It is n6< nv^sit as misrepresentation, but there is something abdut the mining industry that leads to exaggeration, except by those who, long ex-, perieniced and through many disappointments, causft. them to hold ideas reverse to the bubbling expecta- tions of those endowed with a vivid imagination. Tni^JJ.^district^. espgcia^^^ levels^ the veinff qt. the surface ar e often rich, and rare spe ci- mens can be obtained from prospects that have not, and never will ha ve^ commercial value; yet these specimens are taken from the work and is evidence to support the claim that the hole shows several feet of fine shipping ore. The inexperienced investor, who comes into mining camps with a desire to buy property, not being educated in nature's ways, can^ not tell the difference between ore and gangue mat- ter. He is shown a crevice, containing four feet ©I non-commercial ore, yet from various parts of it he «> ROCKS IN THE ROAD TO FORTUNE can obtain assays that will run from $50 to flOO a ton. These are picked out, and he passes his opin- ion or estimate of possible tonnage upon these small ipecimens. And here lies the germ of the mistakes, for until that prospect is developed, and its ore con- tents proven, it is not a mine, and has no value, be- fond whatever speculative value the owner may place upon it. A prospect may be valuable from the aurface and pay its way, but more often it is worth- less until well developed. Nature, in her wise way, seems to have regulated the supply of gold and silver in her treasury vaults, fet from the prospects spring the great mines; the labor is to win the producer from the non-producer. It is the science of mining that enables the experi- enced man to pass over the sliver, the spur and the small, insignificant crevices, and to reduce his risk by locating the larger fissure that gives evidence of containing ore, which are more liable to be the mother vein and, subsequently, the bonanza. As we gain experience, we learn to eliminate risks. We compare a small fissure with something «een in another district. We remember how it turned out. We pass it over, and, finally, perhaps, settle upon one or two great veins, but we are yet sadly ignorant of all the combinations that hold nature's secrets. As we learn, we apply the condi- tions to other districts and, generally, with good re- iults. We have practically mastered metallurgy, but not geology. The practical miner of experience draws deduc- ROCKS IN THE ROAD TO FORTUNE .47 '">5^rc/i tions as he prospects. He knows that only'one pros- pect out of a hundred may prove commercial. B[e knows that the great majority of the rich dividend paying mines of the world exposed pay ore from t^ surface; he, seeks the vein showing rich ore.. He is notaBeliever in the theory that if you sink upoD any prospect that you will find rich ore at depth. . J!llfije--ni ust Jbe some indication,, otherwise he will not devote his energies to the development. He realizes that, while ore exists at the surface, it may not continue with depth. He understands that you cannot put four feet of pay ore in a six-inch crevice; so he naturally searches for what is termed the mother vein, which may be from twenty-five to fifty feet in width. He has always before him the knowl- edge that, while a vein may not show any mineral at the surface, there have been jcases [where depth has proven it to contain rich bodies. Thus the de;v velopment o^. the .ConsoUdated Virginia Mines in Nevada was. Qf . jnaterial benefit to the prospector, for at the depth of 1,400 feet the great bonanza thaf gave"the world |114,o6o,do6 was uncovered. The desire to find a large generous crevice pre- vails in all experienced prospectors. The author prospected the San Juan country with an old miner, who day after day passed over rich ore that ap- peared in small lenses in little cracks and crevices, which other men of less experience would gladly have taken up in the honest belief that it was a rich mine. Finally we stumbled on a great big dyke, with a small streak of mineral along the hanging 48 ROCKS IN THE ROAD TO FORTUNE wall. The old fellow went almost wild with joy, and he made his location there, after results proved his judgment to be correct, for it was the bonanza mine of Rico where the writer constructed a small adobe smelter. He had found a vein that was large esiough to contain commercial bodies and the sur- face assays were satisfactory. After the mineral indication is found, the first step is to locate and open the vein. The prospector proceeds with pick, shovel and hand drills. Thus he sinks to a point where he can no longer throw the rock out with his shovel. Up t© a depth of twenty feet, by benching, he is able to do this work alone. Then comes the windlass per- iod. Admitting the prospect has increased in value and he is justified in either hiring a man to help, or to give an interest in the property in lieu of wages, the windlass is constructed and they work together. When drilling both men are in the shaft or tunnel. When the shots have been fired, and the ground broken, one remains below and fills the bucket and tile other hoists it to the surface. If there is any ore of a commercial grade, it is sacked and when a ton is obtained, if it is rich enough, it is shipped to a smelter, with the results, general supplies are bought. In this manner the prospect may be devel- ofped to fifty feet— often 100 feet. If the ore still continues and the prospect is still promising, the third step is taken. That is, the windlass is dis- carded and a tripod and horse-whim is erected. This m a little drum affair, worked by a lever, that gener- u Ph o M s o V a in