"Many mining companies have been ruined, without any reference to their mines, through men deciding on the reasonableness of new process and machinery who have no knowledge of the business in hand. It is assumed often, that if an inventor or manufacturer of new machinery will agree to guarantee success, or take no pay if not successful, the company takes no risk. In actual fact a whole year is wasted in most cases, failure spoils the reputation of the company, running expenses have continued, and further working capital cannot be raised, because all concerned have lost confidence by the failure to obtain returns promised. All this in addition to the regular, unavoidable risks of mining itself, which may, at any moment during the year lost, call for increased expenses and increased faith in ultimate success. To the mining man who makes money by the business, the natural risks of mining is all he will take; it is sufficient; and when he invests more money in machinery he takes good care that he takes no chances of either failure or delay. "The following are rules which no mining company or individual mine-owner can afford to neglect. "(1) The risk should be confined to mining. No body of directors is justified in taking a shareholder's money and investing it in new processes or machinery when the subscription was simply for a mining venture. Directors are invariably incapable of deciding whether a so-called improvement in machinery or process is really so or not, and the reasonable course is to follow established precedents. "(2) The risk of selecting an incompetent manager should be reduced to minimum by taking a man with a successful record in the particular work to be done. The manager selected should be prohibited, as much as the directors, from experimenting with new methods or machinery. A really experienced man will require no check in this direction, as he will not risk ruining his reputation. "(3) The only time for a company to experiment is when the mine is paying well by the usual methods, and the treasury is in a condition to speculate a little in possible improvements without jeopardising regular returns."