building if people can be shown enough ore to justify it, and the mill is not needed in any event until ore is proven, and represents so much capital tied up and unproductive until it can be put in operation. is safe to say that lack of capital, lack of honesty and poor business judgment are responsible for at least half of the failures of such mining projects to come to a productive stage; few of them ever get sufficient development to show what they can do. The Allison Ranch Mine has been one of the few exceptions, and can be said to have been quite well explored by the last operators. The numerous promotions that have come and gone without contributing to the welfare of anyone except the stock salesman, is in sharp contrast to the few successful operations that have resulted when good business judgment, mining experience and good faith with the buying public have been combined. in charge of the promotion. But most of these have been based on old mines, and it is hard to recall in recent years any important examples of good mines developed from new prospects to important producers in this section of the state, as far as gold quartz mines are concerned. The Morgan Mine on Carson Hill had a record of about $3,000,000 previously to its credit, but had lain idle 20 years when taken over by Wm. J. Loring. No consideration of the mines promotion problem would be complete without citing this successful example of what can be done with California mines if adequately financed and honestly and intelligently developed. There may not be another Morgan Mine in California; it is true that in the early days it produced the largest single piece of pocket gold ever found, worth about $300,000. But there are many mines waiting for development that are well worthy of attention. If the stock buying public could be brought to the point of informing itself a little more fully of the merits of a mine promotion before parting with its money, there would be more dividends and more mine development. If the multitude of mine promotions based on California mines but incorporated in other states, were domestic corporations controlled by a fairly administered law, it would be a help to mining and to the stockholders, but the state law cannot reach beyond the border to prevent misrepresentation of some mines and consequent injury to the whole industry. Another form of mine exploitation growing out of the desire of the promoter to escape the blue sky law, is the unit plan, which has been tried in a small way during the past year or two. The following are the main points in one of these projects submitted to the public last summer: Mr. X secured an option to purchase certain claims, and concluded that $25,000 was needed to finance their operation. He thereupon divided the option into 100 interests, or units," to be sold at $250 each. On payment of $250 each subscriber was held to be entitled to 1/100 interest (or more, at the same rate) in the option, and in case the option were closed, to a like interest in the property and any production from it. The price of $7,500 for the property to be paid as follows: $1,000 cash on the subscription and sale of 20 units; $1,500 cash on the subscription and sale of 30 units more; the balance to be paid with 30 units at par, at which time a deed would be given for the property. No meeting of unit holders, and no provision in any way for their protection, or for safeguarding the funds or directing the spending of same, was provided for until the above 50 units had been sold. The main objection to this plan is that it places too great a responsibility and moral strain upon one man, and there is too much danger of the plan falling through before the unit holders even organize. On the owner's side, we find in later years that there is an increasing number of absent owners, living in town or perhaps hundreds or thousands of miles away. When a man ceases to be a miner or prospector and leaves his claims because of choice or necessity, the prospective buyer has much less chance to become interested in them. This condition is partly due to the collapse of former mining booms, during which mines and prospects were eagerly bought by non-residents, and partly to the growth of urban life, the removal of successful former mine operators to the cities where they have invested the fortunes gained in mining, in other business, and their children have grown up strangers to the mines. Summarizing, then, we see that on the one hand we have a number of well financed companies that are interested in finding new mines. They realize that the properties on which their prosperity is based are wasting, and will last only a few years longer in many instances. They have good organizations and wish to continue mining. But they will not as a rule do much prospecting. They want something already brought to the point where there is evidence of a good sized mine in the making. This means at least a few hundred feet of development, with an exposure of ore sufficient to give hope of a good sized ore shoot, and with an assay record properly kept, and that will stand up under re-sampling. On the other hand are the numerous non-resident owners of mines who are not miners, or for some reason are unable to put their properties in operation. The situation would seem to call therefore for a class of middlemen to take hold of good prospects and bring them to the point where they are proven valuable or worthless. Properly handled stock companies, organized to develop mines, and with proper technical guidance, can render real service in this direction. The more good prospects that such a company can investigate, the better will be the chance of profit. If one out of four of these prospects makes a mine, the profits from the one property ought easily to care for all expense on the others and give a good net yield besides. SECRETARY'S OFFICE. W. W. THAYER, Secretary. The California State Mining Bureau was created April 16, 1880, by legislative act. In March, 1893, the original act was repealed and an amended act approved and passed by the legislative body. Again on June 16, 1913, a new Mining Bureau Act was approved which became effective August 10, 1913, repealing all former acts, and forming the basic law under which the Bureau now functions. It is doubtless true that both the mining and lay public have not in the past always recognized the part played by the Bureau in the development of the state's mineral resources. Innumerable inquiries regarding them, originating within and without its borders and in foreign countries, have been answered with ultimate results reflected by a consistent growth in the value of the state's mineral output since the records of production were first compiled by the Bureau in 1887. It is believed that a better understanding of the economic position occupied by the Bureau will be imparted to the public, whose funds support it, by embodying in the Monthly Chapter a review of the executive activities. The responsibility for the coordination of effort of each department, to the end that the utmost efficiency may be maintained with the limited and variable appropriations accorded the Bureau by successive legislatures, rests upon the office of Secretary. Activities referable to that office, such as reports of new maps and publications issued, amount of mail handled, changes and enlargements in offices, changes in personnel of the staff, property and equipment, ninancial statements, etc., are therefore included herein. New Publications. During the month the following Bureau publications have been made available for distribution: Summary Vol. 8, No. 5. of Operations, California Oil Fields, November, 1922, Mining in California, November, 1922, (Monthly), Vol. 18, No. 11. Distribution of Publications. The Bureau's publications are constantly in demand, requests for copies coming from all over the United States and foreign countries. Publications were distributed during the month as follows: Mines and Mineral Resources of Los Angeles, etc. Mines and Mineral Resources of Monterey, etc. Mines and Mineral Resources of San Bernardino, etc. Mines and Mineral Resources of Nevada County Mines and Mineral Resources of Sierra County Bulletin No. 6, California Gold Mill Practices_. Bulletin No. 37, Gems, Jewelers Materials, Ornamental Stones of California_ 6 1 Bulletin No. 75, United States and California Mining Laws. 9 Bulletin No. 76, Mangaense and Chromium in California. 61 Bulletin No. 89, Petroleum Resources of California with special reference to unproved areas 58 Bulletin No. 90, California Mineral Production for 1920, with County Maps- 23 2875 1 1 14 42.5 The Bureau maintains in addition to its correspondence file a mine report file, which includes reports on some 7500 mines and mineral properties in California. Also, there is available to the public a file of the permits granted to mining and oil corporations by the State Commissioner of Corporations. During the month 938 letters were received and answered. They are practically all requests for information and the inquiries cover all phases of prospecting, mining and developing mineral deposits, reduction of crude minerals and marketing of refined products. Drafting Room. The Bureau maintains an up-to-date drafting department, where topographic and geological maps, tracings, oil well logs, and oil field maps are prepared. DIVISION OF MINERALS AND STATISTICS. WALTER W. BRADLEY, Statistician and Curator. STATISTICS. California produces commercially at least fifty different mineral substances, with a total annual value averaging in recent years in excess of $250,000,000. There are several thousand operating properties, including mines, quarries, oil and gas wells, mineral springs, gravel pits, mills, and smelters. The task of compiling accurate and dependable statistics covering their activities is a difficult one, requiring care and a technical knowledge of properties and processes. Since the inauguration of the Monthly Chapter, it is possible to publish the production figures for any mineral within a maximum period of thirty days from the date on which returns are complete. It is hoped that the early appearance of the figures for some of the minerals will induce other operators to cooperate, to the end that the complete statistical bulletin may be incorporated in one of the early mid-year issues of the Chapter. Blank forms were sent out in January, and the 1922 data are now coming to hand, so that we hope to be in a position to give some of the figures in the March issue. MUSEUM. The Museum of the State Mining Bureau possesses an exceptionally fine collection of rocks and minerals of both economic and academic value. It ranks among the first five of such collections located in North America, and contains not only one or more samples of most of the known minerals found in California, but many specimens from other states and foreign countries as well. Mineral specimens suitable for exhibit purposes are solicited, and their donation will be appreciated by the State Mining Bureau as well as by those who utilize the facilities of the collection. The Bureau supplies a set of forty typical minerals and ores, appropriately labeled, for study purposes to any public school in the state upon request. During the past 30 days, a total of 475 visitors signed their names to the Museum register, and in addition there are many others daily who fail to take note of our request for their signatures. LABORATORY. FRANK SANBORN, Petrologist. A sample of allanite, a complex silicate containing some of the rare earth metals, was one of the 216 samples received during the thirty-day period covered by this report. This is the second sample of allanite from a California locality received at this laboratory during the past year. A list of the samples having a possible commercial value, judged from the sample submitted only, is appended: 15-15 Phosphate of lime; also turquoise. 15-17 Gypsum. |