164 MINING. 



never been deceived, although it is often more healthy 

 not to notice such things until one gets away from the 

 mining locality under examination. A human life is not 

 allowed to block the way to success. 



The Homestake mines of the Black Hills in Dakota 

 are an example of real mining operations, I was ac- 

 quainted with the mining expert who visited this 

 mine when first discovered. He was sent out by California 

 parties, who purchased it on his report, and when they 

 first began work were so disappointed with the first result 

 that they accused the expert of selling them out ; but 

 he showed them that he was right if they would work the 

 mine as he had recommended, which was with not less 

 than one hundred stamps and as many more as they could 

 handle. The mineral was of very low grade, only running 

 from $5 to $10 per ton, but it was in immense quantities 

 and very easily rained, and free milling. The actual cost 

 for machinery, material and labor, for mining and milling 

 a ton of this mineral, was only about $3.00 per ton out- 

 side of management, interest and general expenses, and 

 counting two tons per day for each stamp it was easily 

 figured out how many stamps would be required to pay 

 expenses, and what profit could be turned out, and as 

 there were endless quantities of the ore, it was simply a 

 matter of capital and management. So the enterprise 

 was stocked for $12,500,000.00 and has only called but 

 for $200,000.00 assessments in all. That was July, 1878, 

 and has turned out dividends regularly, and it has 

 actually paid up to this date, Jan. 1892, when the last 

 dividend of 10 cts. per share was declared — $4,793,750 in 

 all. This is a well conducted business so far as the mines 

 are concerned, but it is very much over capitalized and 

 its stock, each share of which represents $100.00, sells for 

 $12.00 to $13.00 per share on the market to-day. Thus 

 the dividends net about 3^ per cent, to the actual pur- 

 chaser for money now invested, by which you will see 



120 



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