(e) Abundant ore in sight.—It is well to know in what sense the much abused phrase "ore in sight" is used. Reputable mining engineers attach a definite meaning to the expression.
(f) Proximity to rich. properties.—This has been touched upon in the section on the Reputation of a Camp, page 292.
(g) A famous engineer quoted by a promoter without standing—such quotations are apt to con sist of a few carefully chosen excerpts of a report which either conveys an entirely different conclusion from that sought to be established, or which was pre pared for an entirely different purpose. Judicious bits are sometimes picked out of United States Geo logical Survey reports, which are intended only to describe the general geological features of a region. Mr. Rossiter W. Raymond, an engineer of high standing, was once quoted in a questionable pros pectus. Upon being interrogated, Mr. Raymond re plied that thirty years before he had made a favorable report on the property to the government, and that by referring to mining reports he found that more valuable ore had been taken out of the mine than he had foreshadowed in his report. As to whether there was now any gold left he had no knowledge.
12. Test questions.—Many lists of test questions have been prepared by mining engineers at different times, to bring out the matters upon which an in vestor should receive satisfactory information before risking his money. The most authoritative list is probably that prepared by the Fraud Investigating Committee of the American Mining Congress of 1907. It is as follows : Presum'ing that the prospective investor is anxious to ac quire definite information regarding a mining company and its property, the committee urges that, as a preliminary step, he secure precise statements from the promoter in answer to the following questions. Inasmuch as the misuse of the
mails is a felony, be sure to preserve all replies, together with the stamped envelopes containing them: 1. Company organization, where and when incorporated? 2. Capital stock, how issued and apportioned? 3. What steps have been, or will be taken to raise funds for the development or equipment of the property? 4. Is any of the stock pooled? 5. How was the property acquired by this company? G. Are there any debts against the company? 7. Are there any encumbrances against the property? 8. Location of the property and total acreage? Nature of the titles? 9. Nature and extent of developments and equipment, and how much has been expended in this work? 10. How much treasury stock has been sold and at what price? 11. How much cash is in the treasury ? 12. Has the property ever produced and if so how much has it produced under the present ownership? 13. Has the property ever been examined by a competent and honest mining engineer? Give his name and address, and send copy of his report.
14. Is the property working at the present time? If so, how many men does it employ, exclusive of stock solicitors? 15. Has a comprehensive financial report of the opera tions to date been issued? If so, send a copy. If not, count the writer out.