It is worse still, of course, to buy a practically worked out mine, though this too is sometimes done.  It must be remembered that mining, though often so profitable, is nevertheless a destructive industry, thus differing from agriculture, which is productive, and manufactures, which are constructive.  Every ton of stone broken and treated from even the best gold mine in the world makes that mine the poorer by one ton of valuable material; thus, to buy a mining property on its past reputation for productiveness is, as a rule, questionable policy, unless you know there is sufficient good ore in sight to cover the purchase cost and leave a profit.

One of the greatest causes of non-success of gold-mining ventures, particularly when worked by public companies, is the lack of actual personal supervision, and hence, among other troubles, is that ultra-objectionable one—­gold stealing from the mills, or, in alluvial mining, from the tail races.  As to the former, the following appeared in 1893 in the London Mining Journal, and is, I think, worthy of the close consideration of mine directors in all parts of the world:—­

“No one that has not experienced the evil of gold thieving from reduction mills can have any idea of the pernicious element it is, and the difficulty, once that it has got ‘well hold,’ of rooting it out.  It permeates every class of society in the district connected with the industry, and managers, amalgamators, assayers, accountants, aye, even bank officials, are ‘all on the job’ to ‘get a bit’ while there is an opportunity.  To exterminate the hateful monster requires on the part of the mine proprietors combined, stern and drastic measures undertaken under the personal supervision of one or more of their directors, and in many instances necessitating the removal of the whole of the official staff.”

The writer narrates how about twenty years ago he was led to suspect that in an Australian mine running forty head of stamps, in which he held a controlling interest, the owners were being defrauded of about a fourth of the gold really contained in the ore, and the successful steps taken to check the robbery.

“We first of all dispensed with the services of the general manager, and then issued the following instructions to the mine and mill managers, I remaining at the mine to see them carried out until I substituted a practical local man as agent, who afterwards carried on the work most efficiently:—­

“(a) Both of these officials to keep separate books and accounts; in other words, to be distinct departments.

“(b) The ore formerly was all thrown together and put through the mill.  I subdivided it into four classes, A, B, C, and D, representing deep levels north and upper levels north, deep levels south and upper levels south, and allotted to each class ten heads of stamps at the mill.

“(c) The mine manager to try three prospects, forenoon and afternoon of each day, from the dumps of each of the four classes and record in a book to be kept for that purpose the estimated mill yield of each one.