Take the Rand Mines of South Africa, operated on the English
basis--mines which turned out more than $12,500,000 in one month
not long since. The English method of operating on the Rand is
this: A corps of experts is sent to examine a proposed
property--that is to say, a proved prospect. If their report be
favorable, an estimate is made of the cost of a five-or
seven-compartment shaft, to be sunk, say, 3,500 feet. The cost of
producing a year's supply of ore for the mill is then considered.
The cost of the mill and the cyanide plant is also figured. The
total cost is then cast up, and the company is ready to be formed
for a half million to five millions of dollars, according to
existing conditions. This money is paid in, and is ready to start
operations. These men mine carefully, using all possible
scientific knowledge and practical experience as guides. The
operation may have risk, but it is perforce honest.


THE AMERICAN WAY--A GAMBLE

Now let us examine conditions not infrequent in the United
States, by no means assigning wings to all English mining men, or
hoofs to all Americans:

A prospector discovers mineralized rock. He locates one or more
claims as controlled by the laws of the district where he is.
Perhaps others also locate more ground. A little work is done,
and then the claims are up for sale. A claim is perhaps sold for
a few hundred to several thousand dollars; sometimes the seller
receives in addition stock in the company to be formed. No