The Organization and Financial Development of a Mining Company

If one who casually buys a mining stock, believing, so he says, that he is "stuck," yet hoping that the reports may prove true, could know all the struggle, pathos, hopes, despair and moments of triumph attending the effort for the financial development of a mining enterprise; one would sympathize with the promoter, and wonder at the determination, which, if success is to be obtained, must meet and overcome prejudices, must encounter doubts, and incredulous disbelief during years of effort to find success in beating down all barriers, and obtaining the necessary capital to operate the mine. One who is strong enough to obtain his end against such opposition is calculated to succeed, and usually does make a success of his mine after obtaining the money to operate it. There is pathos and sorrow in the effort because all do not succeed, even though a life time is dedicated to the effort. One instance comes to my memory. A miner prospecting some years ago discovered a mine, and thought it a good one; obtained the title and set to work to raise the money for its equipment, but without success. The mine was in Central America, a place not too well esteemed, and few would listen to his story. Yet he labored on, he and his wife together. Sometimes they made a little money at one work or another, and then would spend it looking for someone who would hear their story, and advance the capital required to work the mine. Time went by, they grew old together and died in want, and the mine was never worked. What pathos of hopes and disappointments were hidden in these wasted lives none knew, nor is this an isolated example. Many are waiting, working and hoping today; some will succeed, others are doomed to disappointment; but they will struggle on, for the mining spirit, like the gambling fever, is hard to subdue; and it is all so plain to those who own the mines, and feel sure as to their worth, that it seems impossible that someone will not harken, and take a venture with them, where they themselves have risked their all; and yet how little encouragement is found. If this were different, and if people who had money to invest gave better heed to those who actually own a mine., and sought for capital to establish works which they would themselves operate, the story of mining would be very different and many permanent successes would be chronicled each year; but people doubt the miner, who with blunt story and rough ways seeks for financial help, and asks for partners to share in his venture. So the mining company and its financial development conies on the scene. The mine owner, weary in his search, receives offers that a promoter, banker, broker, or other personage will take up his proposition, provided suitable terms are arranged. I remember well how one old prospector replied to such a proposition. "She's a good prospect, but she ain't worth no million dollars; may be when she's opened up, but that's not now." "Precisely," the promoter said; "we capitalize the prospective, not the present worth and then sell shares based on the present worth at low prices which advance as values are developed; those who put their money out for development thus reap the benefit, and this is what I propose." "Each person who invests at prospect prices in a capitalization for prospective worth knows that if our expectations are brought to realization his profit will be in holding a great number of our shares." So the prospect was capitalized for $1,000,000.