New Haven Paper - The Valuation of Mines of Definite Average Income

As the theory and the practice of valuing mines have never been discussed in the Transactions, a paper on the subject may be acceptable, even though not exhaustive. The method here indicated is set forth, not as a model of perfection to be followed absolutely, to the exclusion of any other system based on sound scientific, commercial and equitable principles, but merely as an aid to mining engineers and financiers in estimating the value of mining-property. This paper is intended merely to point out certain financial features of the question, and not at all to go into the theories of the formation of mineral veins, extremely valuable as it must, of course, be to understand the laws of the earth's formation and of its various changes, which are the basis of such important sciences as geology and mineralogy, and highly useful as guides in determining the probable existence and extension of mineral deposits. Financial Elements of Mine- Valuation. The practice of basing the stock-exchange price of mining shares upon reports, periodically received from the mine-captain or manager, stating that in his opinion the mine is " improving " in this or that level, and is worth so much " per fathom," is, of course, absurd. Everybody experienced in metalliferous mining is aware that a mineral vein varies in thickness and also in percentage of metal in different parts of the same mine. According to the practice just indicated, a mine must have had as many values a per fathom " as there have been given reports upon it at intervals during the year,