Plain business methods

Plain business methods should apply, and this introduces the subject of the business organization. It may consist of a well furnished office, a big safe, a stock book and a talkative promoter. Probably there will be prospectuses, maps and numerous samples. An outfit such as this should make one cautious1 iand whenever the flag is put out, as it were, to catch the eye, the investor should beware. What he should look for is an organization which will be useful to the work proposed, not attractive furnishing to catch the eye; and not to place too much reliance on specimens shown by people on whose statements one cannot thoroughly rely. A story is told of how it happened once in London that a broker in mines had sold a property, and among the samples he had shown was one of great beauty, white quartz studded with gold, a specimen to be desired. The mine had been disposed of, and a friend who had helped in the transaction said to the broker : "Now the mine is sold you do not need the specimen, let me have it for my collection." The broker hesitated, took up the pretty piece of ore, stroked it and then said : "No, you can't have it ; this is the third mine I have sold with that sample and I think I need it in my business."

Here is a criterion on business organization: bright specimens and show; if it is to sell the stock it will be in this form ; if it is to work the mine it will be in another form; one will be arranged to attract the eye, the other to facilitate work for the mines. Where the object in view is simply to sell the stock, the attractive will predominate; where facilities to work for the mining operations are considered, practical and often inexpensive equipment will be found. The atmosphere of a place to catch the fancy is so different from that of a place organized to accomplish some practical work that one should not be deceived. If doubt is caused by the surroundings one should inquire what the plans might be for business organization, and should be shown plans such as practical business men would approve. The office, at the financial center, where the mine is being offered, should be good enough to enable those who have the work in charge to exhibit successfully the maps, reports and specimens, and to show the special advantages of the property seeking capital for its operation. They should show what it is costing to raise the money through sale of shares ; they should show what work is being done on the property they represent, or what money is being accumulated to provide for work; they should show the names of men on the board of directors who are competent to pass on propositions relating to the practical operation of a mine ; they should show suitable arrangements for obtaining their machinery, and competent reports of the requirements which it must fill in order to win money from the ore; they should show their system of accounts, and how they propose to check up the expenditures with the results obtained; they should show what arrangements are in progress for the organization of the working force at the mines, and the system proposed for checking up the daily expenditures, and accounts; they should show what systems they propose, or have established, for taking care of the mineral which may be obtained; if the proposition is one handling products which must be marketed they should show what arrangements are being made for handling the sales department and finally they should show that they have the services of a competent mining man, or better yet, mining engineer to have charge of the operations at the mine. If on investigation it is found that these particulars of organization are not receiving much attention, then it is pretty evident that they are not thinking of mining, but only of selling stock; and on general principles their proposition is safe to let alone.