HISTORY AND TECHNOLOGY OF THE GOLD DEPOSITS. 
143 
district, in both cases originating in questions relating to labor unions. The big 
strike of 1894 ended in a compromise establishing the present scale of wages and 
hours of labor. The second great strike of 1903 and 1904, begun by the Western 
Federation of Miners on the basis of seemingly irrelevant issues, was unfortunately, 
like the first, accompanied by much bloodshed and violence and ended in the defeat 
of that organization. 
FINAN(TAL CONDITIONS. 
Most of the mines of Cripple Creek were located by prospectors and working 
miners. Extensive consolidations have since taken place, but the camp still largely 
remains an aggregate of many small mines. Most of the mines paid for their own 
development almost from the grass-roots. The total number of working companies 
is probably not far from 250, while the number of mines recorded on the map accom¬ 
panying this report is 324. The owners of individual claims have usually developed 
their property themselves if they proved payable from the start. If not, a company 
was organized with the financial aid of some local man of means and, if necessary, 
some stock sold until the mine was put on a paying basis. If success did not attend 
the efforts, promising parts of the claim were leased to working miners or to small 
companies of men who were able to work more economically than a larger organi¬ 
zation. A vast amount of “wild-catting,” or organization of companies based upon 
some probably worthless piece of ground, has also been practiced, chiefly by a class 
of promoters who are always to be found in newly discovered and rich mining camps 
and to whom the gullibility of the distant public offers attractive vistas of illegiti¬ 
mate profits. Some companies consolidated to larger corporations or were sold to 
foreign capitalists, but the list of foreign-owned mines is a small one. The leasing 
system built up as a result of all these conditions has perpetuated itself and is still 
in extensive practice. The leases run from six months to two years and the royal¬ 
ties are usually 15 to 35 per cent of the net return, that is, of the sum obtained from 
the sale of the ore after subtracting transportation and reduction charges. Occa¬ 
sionally several lessees will work in one mine, each having a separate level or vein 
to work on. In one case 14 sets of lessees were at work on one small property of 
two claims. While this system may have some advantage, its drawbacks are con¬ 
siderable; it is, as Mr. T. A. Rickard says, “the last resort of a perplexed mine 
owner, and is a confession of inability to work one’s own property.”" Moreover, 
the expiration of the lease usually leaves the mine in a very unsatisfactory condition. 
The leasing system at Cripple Creek has recently been discussed by Mr. J. W. Finch, * 6 
who concludes that under certain conditions which prevail in Cripple Creek it is of 
considerable advantage. 
In organizing the mining companies of Cripple Creek a very large nominal 
capital is the nde, regardless of the size or the character of the property. In general 
it is $1,000,000 or $1,500,000, divided into shares of the par value of $1. If the 
property is a small one the value of each share is of course only a few cents; indeed, 
if it is a mere prospect the shares may be quoted as low as $1 per thousand. Practi¬ 
cally all of the stock is nonassessable and this is one of the reasons for the excessive 
capitalization practiced. A large amount is usually held as treasury stock and sold 
a The Cripple Creek gold field: Proc. Inst. Min. and Metallurgy, London, 1899, p. 39. 
& Mining Mag., vol. 12, No. 6. 
