374 PROCEEDINGS OF THE 



of reduction ; and the sum of the last three must be 

 less than the first, or the mine will be closed. Mining, 

 properly understood, is a business in which the profits 

 or losses are the result of the balance of these condi- 

 tions, not an excavation of treasure whose enormous 

 value renders other considerations insignificant. Now, 

 in the three costs above enumerated, the principal 

 elements are water and wood. 



The cost of production includes labor, power (for 

 hoisting, drilling, etc.), the mine plant (including all 

 the necessary buildings), timbering, and supplies. 

 Where wood is scarce or absent the price of building 

 is enormous ; rents and fuel are high, and the price of 

 labor must be correspondingly increased. Probably 

 the highest wages paid to miners in the United States 

 are paid in the desert; for example, in the camp of 

 Tonopah, in Nevada, where everyone underground 

 receives four dollars per day. In this camp also the 

 cost of power for hoisting is very high ; the people 

 are forced to use largely gasoline or petroleum, which 

 must be brought a long distance with heavy transpor- 

 tation charges. The cost of the plant is proportional, 

 a moderate-sized frame building costing $15,000 to 

 $30,000; so that stone and iron have been largely used 

 in construction, at a burdensome cost. 



Timbering in most mines is an important factor. In 

 the early history of the Georgetown (Colorado) mines, 

 timbers were hauled by bull wagon from Iowa, until 

 it was found that the native wood, though inferior, 

 could yet be used. Vast quantities of wood are used 

 for timbering in most large mining plants, and the 

 price of the timber is one of the important factors in 

 striking the balance of profit or loss. Thus the neigh- 

 borhood of a forest and the character of the wood in 

 that forest are of great importance. 



