ore-recovery and a
higher price of metal, may be compared to the value included in
other forms of commercial enterprise for "good-will." Such forms of
enterprise are valued on a basis of the amount which will replace
the net assets plus (or minus) an amount for "good-will," that is,
the earning capacity. This good-will is a speculation of varying
risk depending on the character of the enterprise. For natural
monopolies, like some railways and waterworks, the risk is less
and for shoe factories more. Even natural monopolies are subject
to the risks of antagonistic legislation and industrial storms.
But, eliminating this class of enterprise, the speculative value
of a good-will involves a greater risk than prospective value in
mines, if properly measured; because the dangers of competition
and industrial storms do not enter to such a degree, nor is the
future so dependent upon the human genius of the founder or manager.
Mining has reached such a stage of development as a science that
management proceeds upon comparatively well-known lines. It is
subject to known checks through the opportunity of comparisons
by which efficiency can be determined in a manner more open for
the investor to learn than in any other form of industry. While
in mining an estimate of a certain minimum of extension in depth,
as indicated by collateral factors, may occasionally fall short,
it will, in nine cases out of ten, be exceeded. If investment in
mines be spread over ten cases, similarly valued as to minimum of
extension, the risk has been virtually eliminated. The industry,
if reduced to the above basis for financial guidance, is a more
profitable business and is one of less hazards than competitive
forms of commercial enterprises.

In view of what has been said before, it may be unnecessary to refer
again to the subject, but the constant reiteration by wiseacres
that the weak point in mining investments lies in their short life
and possible loss of capital, warrants a repetition that the _A,
B, C_ of proper investment in mines is to be assured, by the "_A_"
value, of a return of the whole or major portion of the capital.
The risk of interest and profit may be deferred to the _X, Y_ value,
and in such case it is on a plane with "good-will." It should be said
at once to that class who want large returns on investment without
investigation as to merits, or assurance as to the management of the
business, that there is no field in this world fo