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15V i<;i)\VAlU) \.K RTKY, oK I.OXDOX. ONT.

CONTENTS:

What is a Mink? An'.s\vi;ri;i) -Mini\(; ( Jim-kaiiuns

; Ilow '

Cdnducied (liJ.rsikAi Ki> i.v \\'()()i>r'.;rs). — 'I'lii-; Diam'

iNl»

Drii.i. ; Irs L'sK and \'aluk. -Rr.iJicimx "K iiii-.

Okk : LocAiiMN OK Smi;i.['i\(; Wukks. —

MiNiNi. 1:.\ i;sIi\ii:nis and ihk

MANAf.l.MEM OF Mimm;

l'",N 1 1 KI'KlSi;-.

iVr.. \c.

— ~- -

E. A. I'avlor .S; Co., Stationers, Uooksellers, >V:c., i^ondon.

Ijoulion, COnt.

AliVl'.IMISKi: MKAM riU'.SSlvS, UUIlM(lNl) SlUKKT.

is:

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T/fe EDITH am/ LORNE PIERCE
COLLECTION ^/CANADIANA

feat's University at Kingston

Htbrarg

KINGSTON. ONTARIO

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HINTS

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MINING AFFAIRS

BY EDWARD LE RUKY, OF LONDON, ONT.

CONTENTS:

What is a Mink? Answ-fckl-.d. — Mininc. Operations; How

Conducted (Illustrated by Wcjohcuts). — The Diamond

Drill; Its Use and Value. — Reduction oi'~the

Ore ; LocAiiox )K vSmei.tixo Works. —

MiNiNo lN\i;srMENrs and the

MAXAOllMENr OE MiNIXO

Enterprises,

I^l^IC^:, lo (:i:xts.

Sold by E. A. Tam.or Ci: Co., Stationers, booksellers, -Vc, London.

AIlVl'IM IsKU MKAM IM. l■..•^^!■•.>, KH 11 MOND sTKKET.

is77.

TN l«^C.LG

PROLOGUE.

The large quantity of silver taken out of the flimous Silver Islet
Mine, amounting to millions of dollars in value, is incontrovertible
evidence of the presence of rich deposits of silver ore in the district
of Thunder Bay. This district will undoubtedly be developed by
some one, and the question immediately arises whether it will be
done by Canadians or by foreigners.

No one can deny that foreigners own Silver Islet, and have so
far controlled nearly all of the six or seven mines which have been
partially tested, and some of which give indications of large returns
when thoroughly developed.

It is furthermore evident that unless Canadians soon devote
their attention to the development of these resources, foreigners
will acquire the most valuable mines, and the country will derive
little or no benefit from the rich deposits underlying that portion of
Canadian territory.

The deforce of prosperity the country would attain by the develop-
ment of a few rich mines, owned by persons who would re-invest the
proceeds in the country, would be immense. The extraordinary
vitality of Spain under her misfortunes, was, to a great extent, due
to the richness of her silver mines, the most productive in Europe,
the richest being those of Hiendelaencina, in New Castile, and, if I
recollect rightly, situate about one hundred miles from Madrid.
What result might not be expected in Canada, where the inhabitants,
undisturbed by war, could devote the whole of their energies to the
development of the manifold resources of the country.

Tlie apathy so far manifested by Canadians in this respect, is a
stigma on their enterprise. At Thunder Bay, of the four principal
mines alive at present, namely, Silver Islet, Duncan, 17 K, and the
Sturgeon Bay, owned by the Canada Silver Mining Company, of
London, Ont., three are American, the last being the only Canadian
undertaking.

Silver Islet is too well known to reijuiie comment. Duncan,
after being worked several years, is commencing to pay, ore to the
value of several thousand dollars having been shipped last October.
The two others are being developed.

184601

WHAT IS A MINE ?

It is often asked : What is a Mine, and how is Mining Con-
ducted ? I will allude briefly to the subject.

Silver is found in lodes or veins in general consisting principally
of (|uartz. The lodes or veins are crevices or cracks, which have
become filled with materials of a character different from the body
of the adjacent rock, and which fretiueiitly extend for miles through
certain districts. Their course is generally very sinuous, but it is
more or less in a direct line.

A lode often becomes divided into branches, while feeders,
which might be compared to rivulets flowing into a stream, con-
verge into it at different points. The principal portion of the lode
is called the " Champion Lode." Throughout its course the width
varies coiisidtrably, the same lode at some points being several feet
wide and at others only a few inches.

J. ode. extend downwards to unknown depths, sometimes in a
nearly ve ileal direction, hut more freciuently at an incline of lo to 45
degrees from it. In their downward course their width also varies
greatly, contracting from the greatest width lo a mere thread and
then expanding ecjually suddenly.

The forms in which silver is met with in nature are numerous.
It is found native in a variety of shapes, somelinics in fibrous masses,
and often bearing a close resemblance to branches of trees, in cubes,
etc. Tlie greatt'r itait of the slver of connnerce is obtained from
the dffcrcnt sulphurc;^, the priiici|);il being sulphide of silver, brittle
silver ore, ruby silver, and chloride of silver. It olten occurs in
combination with th« ores of oiliir metals, such as lead, copijer,
zinc, etc. The greater part of the silver obtained from British
mines is found in coinljination with lead.

Whatever may i)c its form, silver is not found disseminated in
equal quantifies throit;.ihout the lode, hut usually occurs in collec-
tive masses called by minors ' b'lnches." These bunches of ore nre
off.en surrountled by vein mntter carrying very little metal, aiK.l diiler
great!)' in extent, some yielding merely a few hundred dollarsj' worth
oJ ore ai.d others tens of thousands.

^^'hen these " bunches " abound in a particular portion of t1;e
scuie of them are lift "standing" as a reserv-, to be *• pi<-k. cl
out " whenever the yieli from otiur jjorti^ns of the mine f.ills off, or
when new ground is l.eing "(^peiicd y\\)," thus enabling the •'out-
put " to be kept up to the average, tliereby avoiding the soasmodic
fluctuations in the price uf the secuiities of the undt.itaking whicii an
iriegiU;ir yield would cause.

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MINING OPERATIONS HOW CONDUCTED.

A mine is opened tip l)y shafts and levels, /vj,--. /, on preceding
pfiujc, ropri'sciits a cross-section of a |odc''t;ippc(i" b) two shafts. Shaft
"No. i" is the main sliaft, and "Xo. 2" a subsidiary shaft. 'I'hc lode is
sho\vn".'>plit" ne.ir the surface and to become united at "a." The cross-
cuts '•!)" connect ih^ workini^-i fjf t!ie lode with the respective sh:ifts.
The ore is convoyed in rt'a;.,'ons along them to the shaft, and hoisted
to thj snrfue in buckets or "kibbles." The m.iii'. shift is divided
into two, three, r)r four portions, according to circumstan(\.s. One of
the divisions is used f jr the pumps and serves as an outlet for the
f(jul air from the mine. The others are used for hoisting tlie produce
of the mine and conveying the miners to and from tiie workings.
The cross-cuts, or levels being all named or numbered, any portion
of tiie mine is as easily found as streets in a town. 'I'he water from
the dilTerent workings flows into the main shaft wlience it is pumped
up. At the bottom of the main shaft, tunnels are generally driven
for a short distance from it to give space for the accumulation of
water. That portion of the mine is called the "sump."

The following (/^/(,^ 2) is a section of the workings along the
course of a lode. It therefore lies in a direction transverse to the
section in Tvjf. /, on page 5.

Fig. 2.
Surface of ground.

EntnincL' to cross-cut leadiii'' to shaft.

The passages, "a," are known as levels, and the perpendicular
excavations, " b," connecting these, are termed " winces." It is
scarcely necessary for me to state that these levels and winces are
excavated in the body of the lode. The act of removins; those por-
tions of the lode lying between them is called "stoping."

THE DIAMOND DRILL.

In mining, manual l.il>or is being .rradually superseded hy steam
machinery. One of the nio^i important inventions yet introdui;ed
is that of the "Diamond Diill." M. Lescliot, a C'ivil pjigineer of
Paris, France, was tlie inventor. It fust attracted general ncjlice in
1867 ; since then, like all new inventions, it has undergone important
mprovements.

'I'o make the ilescriplion of llie hiring bit of the diamond drill as
simple as possible, 1 will liken it to an iron tube, on tlie end of
which diamond points are alia( lied along the periphery thereo
Being caused to revohe, it prinluces a hole eipial in si/.e to the diam-
eter of the tube by cutting out only a little rock, merely the thickness
of the i)eriphery of the tube 'I'iie combined length of the bit and
core barrel is from M to lU feet. As it progresses, a solid cylinder
of rock passes up the core b.niel (or tube), so that when boring
through a lode, the character of the ore is clearly shown.

l''ig. 3 illustrates the boring bit separated fryiu tiic core barrel
to which it is fastened when in operation.

In a pamphlet issued by the American Diamond Rock Boring

Company, from which the foregoing design is copied, it is thus

described : —

"The projections represent the Diiunondn, which conslitutel lie cutting edges.
This Bit or IJoring lleiul revolves at a speed ol tVoni 400 to lOOU revolutions per
minute, the sixe of the core to be liored out dt |iendin^' upon tlu) inside diameter
of the liit, or more correctly speakiuf,', the track cut hy liie Diamonds, which, it
will be observed, project so that the\- ulor.e come iu contact with the nuittirial
while drilling."

The advantage of ilrilling holes for blasting with the diamond
drill is, that only a small ])ortion of the rock is pulverized, as will

readily appear from the description above, thereby saving a large
amount of power and time. To sink a shaft through hard slate rock,
11x7 feet, the number of holes re(iuired would be 15, as shown in
the following diagram :

Fig- 4-

The work is executed in the following manner : After all the
holes have been drilled to the required depth, say 300 or 400 feet,
and the machine removed, the holes are filled with sand, water, or
any suitable material, to within a certain distance of the top of the
hole, the distance b^ing governed by the amount of rock which can
be torn out by the explosive agent. It would vary from three tq five
feet in depth. The explosive is introduced into the hole and tamped
in the usual manner.

The centre holes are fired together with an electric battery, tear-
ing out the rock in the centre of the shaft. After the rock is removed,
the two holes on each side, opposite the centre, are fired together,
and the rock removed. The remaining holes are then fired.

After blasting the centre holes and removing the rock, the line
of least resistance is always towards the centre, and consequently, in
subsequent shots, the rock breaks inward, leaving the side and end
walls perfectly straight and true. The sand, or whatever is used, is
removed to the required depth for the next charge, when the holes
are again charged and fired as before. The process is repeated until
the depth to which the holes have been drilled is reached, when, if
any further depth is required, the machine is placed on a wooden
frame, wedged fast to the sides of the shaft, and work goes on as in
the first instance.

For prospecting, the diamond drill is most valuable. With it
one can penetrate to the depth of t,ooo or 2,000 feet, and extract a
continuous solid cylinder of the rock traversed. The cylinder being
from 1)4 to 2 inches in diameter, the nature, character, and value of
the rock, for the entire distance is thus completely revealed. In
hard slate, similar to that generally met with at Thunder Bay, the
cost of sinking a shaft 500 feet would be at least $30,000. To pene-
trate that distance with a diamond drill would cost about $1,000. The
time recfuired to sink the shaft would vary from 18 months to 3^^
years, according to the machinery employed, and the amount of
water encountered ; whereas, to penetrate 500 feet with the diamond

drill would occupy from lo to 20 dayr-. Merely the interest on the
cost of the machinery, and the repairs ire included in both estimates.
The machinery for the shaft would cost from $7,000 lo $20,000.
The diamond drill and appurtenances $5,000. The apparent difference
in the co.'-t of the machinery does not show the actual diCterence, for
after the completion of the work the depreciation in the uiacliinery
used to sink the shaft would be serious, whereas the diamond drill
would be as good as new.

Neither a shaft nor one hole with the diamond drill would,
under ordinary circumstances, be sufficient to test a mine. Cross
cuts would have to be driven from the shaft and levels along the
course of the lode. This would entail an additional large expendi-
ture ; and even then the ground explored would be limited in extent ;
whereas, if a hole sunk at a particular point, with a diamond drill,
did not reveal rock or ore of a favorable character, the loss would be
trifling, and another portion of the mining claim could be selected
for the operations.

That, also, is an important consideration, for, in one case, tens
of thousands of dollars, and years of time are concerned, and in the
other, a very small amount of money and a few days of time only.

Rich ore being found, it would, of course, be necessary to sink
shafts, kc, but the outlay would then be of little importance, as a
return for it would be assured.

REDUCTION OP THE ORE— LOCATION OP
SMELTING WORKS.

So far as the District of Thunder Bay is concerned, the cheapest
mode of disposing of the pay ore would be to barrel that worth
$400 a ton, or upwards, for direct shipment to smelting works, which
should be located in proxiaiity to coal, and to concentrate the ore
worth less than $400 i)er ton at the mine.

The reasons for this are obvious. It- is not probable that, for
many years hence, freight from Thunder Bay to Windsor or Sarnia
will be carried for less than $5 per ton.

As a basis for calculation, let us take 8,000 tons of ore worth
$50 per ton.

By shipping same to Sarnia or Windsor, in its crude state,

the cost of doing so, at $5 per ton, would be $40,000

The cost of concentrating the same at the mine would

vary, according to circumstances, from $1.50 to $2.10 per

ton. Take the outside figures and the result is as follows,

viz.:

800 tons concentrated to $400 per ton at a cost

of $2.10 per ton $i6,Soo

Seven tons of dross, or waste rock, would thus be
separated from every eight tons of crude ore.
There would, therefore, remain 1,000 tons of
concentrated ore, the freigiit on which, at

$5 per ton, would amount to 5,000

$ 21,800

Leaving a balance in favor of the latter of $ 18,200

A difference of 45 '_• per cent.

In alluding to Windsor and Sarnia, I do so without reference to
their merits or demerits, as points where smelting works could be
located, and merely for the reason that steauiers at present ply regu-
larly between these towns and Thunder Bay. Admitting that the
ores would have to be transported beyond these points (which I
think very probable), the advantage in favor of concentration would
be even greater than the result given above. The difference in the
cost of transporting the ore from the mine to the nearest shipping
point would also have to be added. With a mine located some dis-
tance inland the difterence would be greatly increased, the trans-
portation of ore through a rough country being very expensive. I
am not prepared at present to state definitely which would be the
most suitable point for the erection of smelting works ; but I fear
greatly that, in the absence of extraneous considerations, it would be
more profitable to have them located in the United States than in

Canada. If my surmises prove correct, no one will regret the fact
more than I shall do, personally. I should like to see such works
located in Canada, but as undertakings of that descri[)tion must be
expected to emanate from joint stock enterjjrises, in which a large
number of persons of various opinions will be concerned, one must
take a p.irely business view of the matter.

Supposing Canada to be as suitable as the United States, or
that, from other motives, those concerned determine to locate the
works in this country, I belive the most advantageous points to be
Sarnia, Windsor, Toronto, and if a canal be built from Cleorgian Bay
to Lake Ontario, the Lake Ontario terminus of the canal.

I have already stated tliat I am not prepared at i)rcsent to ex-
press a definite opinion ; and in the remarks that follow, I merely
aim to assist those whose interests may render the solution of the
question necessary.

One consideration is — the taxes ; another — the cost of trans-
porting the ore from Thunder Bay, and the coals from the pit. As
regards the freight on the ore, Sarnia, under present circum tances,
should command the lowest rates, as it enjoys the advantage of com-
petition between two rival lines of steamers, and because Torop.to
would necessitate transhipment at CoUingwood, and Windsor would
be placed at the mercy of one line of steamers.

On the other hand, coals would, I think, cost more at Sarnia
than at the other points. Whether the other advantages alluded to,
would more than counterbalance its extra cost, can be ascertained by
taking into consideration the quantity of coals necessary to convert
each ton of ore into bullion, and to compare the difference in
the cost of the coals v.'ith the difference in the charges
for the transportation of the ore. Were a canal to be built
from Cieorgian Bay, it would become the highway for the carrying
trade of the West. The result would be competition, and the conse-
quenc;;, low freight rates from Thunder Bay. Tlie Like Ontario
terminus should then, in that respect, be preferable to Sarnia. The
cost of coals at the respective points would then have to be taken
into consideration. So would the taxes. The rate of taxation should
be lower at Sarnia than at the terminus of the canal, for the latter
place will, in these days of bonuses, have to pay liberally for the
privilege of occupying that position.

It is to be regretted that we have no coals in Ontario. Could
not petroleum supply its place in many respects ? I think it could.
Properly applied, intense heat can be obtained fio.n it. Why, there-
fore, are not means devised to apply it to smelting and other kindred
purposes ? Is it because the attempts that have already been made
have not met with sufticient encouragement, or that Canadians are
not sufficiently aware of its importance? If so, the sooner the mat-
ter receives the consideration it deserves, the letier wi:l it I j for the
interests of the country.

MINING INVESTMENTS AND THE MANAGE-
MENT OP MINING ENTERPRISES.

In Canada, mining can scarcely be said to have attained its
infancy ; it is still in embryo. The extent and value of the immense
mineral resources of the country are comparatively unknown to the
general public, and fewer still know what a mine is. Mining secur-
ities, as a se(i(ience, are negotiated with dilficulty, and until an im-
provement takes place in that respect, very little progress will be
made in tlie development of these resources.

To attain that result, it is necessary (i) That shareholders in
mining enterprises should be treated fairly and honorably. (2) That
those in whose hands the management of affairs is vested should be
fitted for the position. (3) That shareholders should be notified
officially, at short intervals, of the result and state of the operations,
as otherwise, th(^se who have not other means of :icquiring inf )rma- .
ation may lose heart, and sell at a moment when their investment is
liable to become most valuable.

Many do not object to the uncertainty attached to mining, if
they could rely on the money invested being ex[)entle(l judiciously ;
but they are, and very reasonably so, averse to having it literally
thrown away. A fretjuent mode of organizing such undertakings is
fraught with the greatest danger to all concerned. A mining ex-
plorer, t)r a so-called practical man, discovers a mineral location,
obtains an introduction to influential city business men (but inex-
perienced in min'ng affairs), induces tliem to lend their names to a
scheme fir purchasing or developing it. The scheme is launched,
ordinary investors, attracted by the names of men noted for ability
and shrewdness, subscribe liberally, a Mining Superintendent is
appointed, he is dc-patched to the scene of operations, "monarch
of all he surveys," a.ui in nine cases out of ten, like a true monarch,
plays at " ducks and drakes " with the funds of the company, until
the undertaking fmds itself bankrupt.

Men of influence who lend iheir countenance to a mining enter-
prise may be most sincere in their professions, and honest in their
intentions, and still do those who follow their examplj a grievous
wrong. There is no doubt that in cases of failure .such persons have
been falsely accused of having willingly deceived the public, and
have had to bear the oilium incident thereto, when, in reality, none
were so thoroughly deceived as themselves. That they inny have
deserved unqualified censure for negligence, and been morally
responsible for the money lost by those who confided in them, no
one can deny. It is a widely recognized principle that those who
are entrusted with the property of others are bound to exercise the
greatest prudence in every respect.

But the loss of capital by a number of individuals is not the
only injurious consequence. By it others are deterred from embark-
ing in enterprises which, on an average, would prove very profitable
to them, and of great advantage to the country.

From the effect I shall now pass on to the cause. The dis-
coverer of a mining location has gencrall)- the same good ojiinion of
, it that the inventor of a piece of mechanism has of ilie 1 Uter. ft is
the best thing ever discovered, and '• there's millions in it." We all
know there are some valuable invt ntions, but iiow long would it take
to squander hundreds of thousands if one believed every enthusi-
astic inventor, and acted on his advice ?

The same might be said of " practical men," and their mining
locations. There are some of tiiem w)k) are well (jualilied to form
a correct opinion as to the value of a lode, but how many out of a
hundred ? Besides, it must be recollected that in a sale they have
everything to gain and nothing to lose, which may add considL'raI>ly
to their enthusiasm. In mining, thoroughly competent ])raciical men
are worth their weight in gold. They arc very scarci", but thousands
cad themselves so. Of the latter a number are good mining men in
one sense, that is, they arL^ v\A:: to remove a given amount of rock
faster than less e-xj^ert fellow-workmen, but they are slight!} lietter
able to judge of the value of a lode than a shoemaker.

Admitting, for the sake of argument, tliat before the ])urchase
be made, some man, supposed to be nure or less convLa>;int v. iih
mining, be engaged to t'xaniine the ])ropt.'riy Now, uri!L';>s those who
engage him have good mining connections, -uch a man v. ill naturally
be selected :it hap-hn/ar':l, and is just as likcl\' to be unreliable as
otherwise, and proltubly more so. Tiieii conges the npj)(.;intment of
a Mining vSupcintondent, a matier of the gravest ini]jOrlaiice, for
success or failure nearly allogtrtli' r (V])tn('s uj.on it. In this, too,
the ])robaliiliiy is that the office wid nut be well nll-.d, unless soini' of
the Direriors liave mining conneciions and experience, for certilldites
of capa< ity are not to be depended upon.

In ordinary commerf:ial affairs no ; rn U.-rt man would think of
entrusting- an eniployee with an iiiij^i rtint (iti-e wiilunit afurw.rds
assuring himself ihat the duties de!eL;;ted tc him wire In-ing pro-
perly performed, yet thai is an error rtiiicli i'i^' '.^i-. are t"ie([uent]y
guilty of; but of this more anon.

I h.ive pointeil out the main sources fr-an w!ia-:i f ulure loo often
springs. It is a ]) cUne which might coritirni timid p:oj)le in ilieir
determination to esche.v niinin;; inv'Stiur-ni-;. i)nt wliac branch of
busi.iess is without penis failv ''s serimis? They may not be so
apparent, it is tru •, l)at tint only in ikes thjm ilia m jre d mgerouu.

I shall now endeavor to m ike a fe.v suggestions, which, united
to a reasonable amount eu disrretioti, will as-ist in separating the
d.'O"..". from the genuine article — in selecting th)-^e umlertakings wiiich
stand on a secure babis from tho,;e whjse structure is Icj.ss pjrf-.ct.

From its nature, mining will, with very few exceptions, be
carried on by joint stock associations. In no branch of industry
should joint stock undertakings be established on sounder princi-
ples. One thing especially is indespensable. They should be formed
to assist one or a small number of individuals who have an import-
ant amount at stake. If no one is sufficiently interested (a principle
too prevalent in joint stock enterprises of every description in this
country) to make the welfare of the company a matter of weighty
importance to him, it is a serious obstacle to success, as its affairs
are very liable to be negligently administered. This has been a fre-
(juent cause of failure, when the elements of success were sufficiently
marked to warrant the expectation of a happier and more profitable
result.

At the same time one extreme is fraught with as much danger
as the other. If there be too great a number largely interested, at-
tempts will be made continually by cliques to get their friends into
power, and displace those who may be doing- the best that could be
done for the interest of the shareholders, and whose experience of
the affiiirs of the company could not be acijuired by others for a con-
siderable time. Such efforts might not prove successful, and yet the
interests of the shareholders suffer seriously, as such contentions
always tend to transform the " esprit de cotps " of the directory into
party spirit. I, therefore, would consider it judicious to have a fair
portion of the stock well divided amongst a number of holders, in
amounts more or less small. I know it to be an accepted assump-
tion that small shareholders are liable to grow easily discouraged,
but I am of opinion that they are as spirited as larger holders, if
treated considerately. The fact is,ofricials have been too prone to look
upon *mall shareholders, as unworthy of attention. It is not, there-
fore, surprising if, finding themselves neglected, they have assumed
that they were being slighted with a purpose, and have lost confi-
dence. Of course, amongst a number of persons there will always
be found some unreasonable and faint-hearted ones, whether they be
large or small shareholders. There is a difference, however, in the
effect. A large shareholder, when discouraged, will not only intimi-
date a n iml)er of weaker ones, but he may cause a serious fall in the
price of vhe stock, by forcing a heavy batch of shares on the market
at once ; whereas, when small holders conclude to sell, the amount
being distributed over a large area, the operation passes off quietly.
It might be argued that the larger the number of persons discouraged
the more public opinion will be unfavorably influenced. Under
peculiar circumstances such might be the case, but ordinarily the
diss itisfaction of small shareholders has less weight than that of
larger ones, however unreasonable the latter may be. Strictly speak-
ing, officials should pay greater attention to the interests of small
shareholders than to those of larger ones, for the result is generally
of greater importance to the former than to the latter.-

L\l

A man of limited resources invests a moderate amount in a
mining operation. To him success means — one or two thousand
dollars. Now, what may not that addition to his capital lead to ?
Give the command of that amount to many a man and the "depend-
ent" will soon become " independent."

In one word, to a wealtiiy man the success of the investment
usually means increase of capital, but to a man of limited, pecuniary
resources, it means " a foundation for the acquisition of worldly
position and wealth." Those successful men, who commenced life
"at the bottom of the ladder," will tell you that "getting a start"
was their greatest difficulty.

I must admit that the interests of small shareholders have nf)t
been neglected as much as has been supi)osed. The harm has been in
giving them grounds to imagine that such was the case. It is, there-
fore, not only necessary to guard their interests, but also to make
them conversant with the flict of its being done.

At least one of the Directors should have (i) good mining con-
nections ; (2) should be fairly conversant with the rudiments of min-
ing ; and (3) should have a large pecuniary interest in the company.
The first is necessary to ensure the appointment of a mining superin-
tendent of the proper qualifications ; the second, to afford the direc-
tors an opportunity of detecting any mal-administration or remissness
of duty on the part of the mining superintendent, and of nipping it
in the bud. It is, of course, understood that such a director would
pay periodical visits to the scene of operations. In addition to this,
a yearly visit from one or more of the other directors could do no
harm, and might prove beneficial.

The third should be a test of merit, and should assure proper
and economical management. I say, should be a test of merit, for
the fact that an individual, with experience in mining affliirs has a
sufficiently good opinion of a mining property to invest largely in it,
is strong evidence of its prospective worth. Such a man is not likely
to venture deeply into an investment of that description without hav-
ing previously secured what he knows to be reliable information re-
specting the property in question.

There is no department in mercantile affliirs where weak ele-
ments can be so readily detected as in mining undertakings. Not-
withstanding this, there is none so much maligned when people
happen to lose money in unsound undertakings. I know of cases
where the weak elements were so app.irent that it is inconceivable
how thoy could be overlooked, yet those who, regardless of the most
ordinary prudence, have lost what they so foolishly staked, are the
most active in casting odium on mining enterprises in general.
Matters have reached such a pass that many men are afraid of taking
an active part in mining leJt their moral reputation should suffer in
public estimation. Why should ii be so ? Is it just to condemn all

those engaged in mining, on account of the dishonest practices of a
few? Are there not dishonest men in every branch of trade?
When a merchant or a bank fails, through dishonest manage-
ment, is it assumed that all the other merchants or banks necessarily
stand on the same footing? Certainly not. Why, then, should
mining be made the exception ? None regret more than hona-fidc
mining men the doings of those who bring mining into disrepute
through their improper conduct. The fact is, none are so niuch to
blame as those whose complaints are most loud ; for, in mining, dis-
honest men are generally the offspring of stupidity, at whose expense
they are reared and thrive. Let there be more discrimination exer-
cised, and mining will soon become more- respectable.

I must add tliat a mining claim may have presented solid indi-
cations of value, and the greatest ability and honesty may have
guided the aftairs relating thereto, and yet success not be the result \
but this hapi)ens less frequently than is generally supposed. 'J'he
legitimate contingencies to which mining is subject afford no grounds
of complaint against any one. Neither can th<»se whose hopes have
not been realized under such circumstances have cause to regret.
Those who have not the manliness to abide by the result, should not
aspire to anything beyond a doubly secured 5 per cent, investment.

Every branch ot business has its risks. The only difference be-
tween mining and other branches is that, in mining the result is
known in a com]) natively short time ; whereas, in ordinary commer-
cial aftairs, it takes a lifetime to liiid out whether success or failure
will crown one's efforts. Age has then weakened one's powers to cope
with failure, while a lilc of close attention to business renders the
fruits of success a source of care instead of enjoyment.

It is not my desire to convey that all should invest in min-
ing. There are i)t.rsons who should not do so. For exaiDple, ladies
should, under no t.ircamst.inc.LS, invest any portion of their capital.
It is even a (luesi.on whether they sliould invest what cm be spared
from their income. Ladies ate not less intelligent than men, but
under our present social system they lack equal onportunities of
judgi:i;.^ of the mjiits of such enterprises. Tne ([lesiion is a deli-
cate one ; f» qrear deal could he said lor and against it. It i;. my
opini(.)n, howtver, lliaf, as a rule, Lidifs should ab.^tdn from taking
part in tlicin. Such ot theni as do not feel disjins'-'d to accept my
humble ojiinion will not, 1 trust, consider nic ungallant in advising
them to consult a rvspectablj broker btfore enibarl-ing in an) enter-
prise of that descriiJtion.

Men wlio should not lie encoura;:cd 10 invest any i)ortion of
their (Mpilai are tiio.-e wiio<e business inti:rests would sufler to a
serious extent by any diminution of their capital. Neliher sliou'.d
trust hinds be engaL;ed therein.

I have allud'-d 10 tliose who should not take part in mining

iffairs, and I will nowdirt'Ct tlit- ntteniion of the reader to those who
could, with propriety, invest.

Foremost are these whose incomes will jidmit (^f a portion beirig
directed into that channel, tind they form .i very large class. The
in\t>tnient of a reason.dde an^mnt could not retard their worldly
progress to any appreciable extent, i<" at all, while a fivorable result
sh>)uld prove of the greatest advantage.

The same may be said of those who are in a ])osition to invest
a portion of their cajiital, and many are able to do so.

(,)ne thing investors should ever bear in mind is, that however
strong the indin itions of large returns, and however confident of
success they may be, they should always keep cool, and not embark
too large an amount in any single undertaking.

DUTIhlS OP SHAREHOLDERS.

Those who become shareholders in any undertaking have impor-
tant duties on which its prosperity greatly depends. Many require
to be reminded that " shareholder " is only another name for '' part-
ner," and therefore, as pariner.'^, it behooves them to further the in-
terests of the undertaking to the utmost in their power by drawing
the attention of their friends to its merits, and so torth. Directors
often find it difficult to sell the requisite amount of stock, and under-
takings languish through lack of lands, when, by the hearty co-o itera-
tion of all tlie siiareholders, the financial position could be easily
and quickly placed on a satisfactory basis.

Having men at the head ot affairs in whom they place confi-
dence, they should support tiiem unreservedly. Unforeseen delays
and difficulties sometimes occur, when, i stead of growing fretful,
shareholders would consult their interests by giving at least their
moral support to those intrusted with the management, who, in such
cases, generally have enoui/h to contend with. While there exist
gold reasons to expert a favorable issue, shareholders should not
allow themselves to become discouraged, but, on the contrary, should
stand shoulder to shoulder, and practice the most determined perse-
verance. Many a prize has been lost through faintheartedness.

DUTIES OP OPPIOIALS.

Those to whom the management of affairs is delegated should
exercise the greatest economy and tact in their administration, and
should not only prove themselves worthy of the confidence of those
whom they represent, but should also enlist their sympathy by
affording them an opportunity of becoming conversant with the

manner in which the duties they have intrusted them with are being
discharged. Shareholders are always anxious to know what is being
done, and the more their wishes (1 might say their rights) are at
tended to in that respect, the greater will be the stability of the
undertaking.

It sometimes happens that a manager abstains from doing what
his judgment directs through fear of disturbing the composure of
shareholders Such men should not be intrusted with weighty inter-
ests, as those they represent are thereby very liable to suffer financial
injury. In mining, a large amount of money has been lust simply
because the management had not the pluck to stop in time. Heavy
expenditures have been wasted on lorlorn hopes. Such a course
is highly reprehensible. The moment sound indications of succcs^s
cease to exist, those in power should not hazard a single dollar, but
suspend operations at once.

On the other side, while i/ierg are tangible iidications of suc-
cess, let nothing daunt you. Shareholders may lose heart, re;'roaches
may be cast upon you, and difficlilties of every description may sur-
round you, but never despair. Difficulties must indeed be terrible,
if they are strong enough to conquer a man. The progress onward
may be slow. But keep moving on, firmly and resolutely removinj;
the obstructions as you proceed, and it circumstances should compel
you to halt, merely consider it an opportunity to gather breath for
fresh efforts. One thing ever keep in mind — the issue. You may
have to travel over steep hills, and in a roundabout way, but let the
issue ever be your aim. Depend upon it, if you persevere sufficiently,
a bright sky will make its appearance when least expected. As re-
gards difficulties, you will soon become accustomed to them, and "if
you are made of the proper stuff," the task of surmounting them wiL'
afford you greater pleasure than success itself

5^::^-