Rensselaer Republican, Volume 14, Number 14, Rensselaer, Jasper County, 22 December 1881 — Is Arizona a Fraud. [ARTICLE]

Is Arizona a Fraud.

Corr. N. Y. Tribune. In spite of the volumes that have been written of Arizona as a mineral region, it is doubtful if, with the exception. here and there of very good sections, the hopes of the thousands who have invested heavily to open new lodes and develope new districts will be even partially realized. Within the past six weeks I have pretty carefully gone over the developed field, and while there is much to encourage furthur exploration, it is apparent that Arizona is yet a long way from becoming a great bullion producing Territory. The really profitable mines that are being worked throughout Arizona can be counted on the fingers of one hand, and there would be a finger or two to spare. In saying this Ido not wish to discourage the investment of further capital here, but in the interest of mining for the precious metals every•where I do hope that more caution will he observed in buying and incorporating undeveloped localities and in placing them ou the Eastern markets. There are scores of mines or rather schemes now seeking the confidence of Eastern capitalists, which are nothing, nor are they likely ever to amount to anything but a expense; o their owners. There is no mining region in the world that has been go prolific of disapointments as Arizona. For fifteen years—twelve years before the Southern Pacific Railway entered her borders—these disappointments have been of almost monthlv recurrence. The advent ot the railway started a “boom” in one district—the new discovery of Tombstone —lint nowhere else has it facilitated the development of profitable mines, lodes or sections. As a matter of fact there are only three silver mines In the whole Territory that are paying regular dividends. These are the Silver King of Pinal county, and the Tombstone and Wet tern, of Tombstone. The first disburses $25,000, monthly, the second $50,000, and the third $75,000, but this last amount is the result of a great strain upon the mine's resources. Other mines in Tombstone are producing sums monthly that vary from. $30,000 to $90,000, but the cost of getting these amounts out Is Buch that there is no margin of profit to stockholders. Whether they ever will reap a reward depends upon whether the output of bullion can be , increased Without proportionately increasing the cost of its production. It is a delicate problem in most mining operations,

for the fact is too painfully apparent that men who control and work mines are often a great deal less concerned about a margin of profit for stockbold ers than they are that the bill of expense, shall be kept up to the fullest figure the stockholders will stand.