Gold Hill daily news. [volume] (Gold Hill, N.T. [Nev.]) 1863-1882, 1864-03-08
Pertinent Suggestions for the Con:
sideration Of Shareholders and Of.
ficers of Mining Companies.
From the S. =. Bulletin, March 5.

From the s. =. Buletn March j.
EDIToRs BULLETIN Il am pleased to see
the commotion among the mining companies
which is aroused at length by the evident
mismanagcment of Trustees. 1t has long
been plain to this writer that q day Of reckon
ing must come, and the idea that the stock
holders of mine, in the mass, were only
goose-a fat one at times-to be plucked oy
the trustees by heavy assessments, by bulling
and bearing their stock, by withholding in
formation or disseminating false informa-
ton concerning the mine, by colluslon, fradu-
lent dispatches and all the various arts Of un-
principled men, would culminate in an ex-
plosion like the present, which would bring
the mining community to their feet, and
when the shock was over ani the smoke
cleared away, companies would look around
and investigate closely to find out causes,
and take heed and put their own houses in
order
l propose to examine into some of the
dangers which surround the interests of
stockholders and the office business of min
ing. think it will scarcely be attempted to
be gainsayed that the position of trustee OF
a mining company has been looked upon as
one which the holder Of was expected to i'm
prove for his own benefit to the fullest extent,
and il he did not he was slow coach, and
was to be reckoned not as among the flats
and not the sharps of Montgomery street.
Being on the inside, having the first news
from the mine, he could close its doors, ex-
cluding even stockholders, as is often times
done; work could be stopped, delayed, or the
true state of the mine withheld; stockhold-
ers, deluded by false reports, or frozen out
by DELAY or excessive assessments. All this
can be done if the Board " is so disposed.
Taking the case of the Real del Monte, is it
not a startling commentary upon the man.
apement of that mine, that the trustees were
not on hand ut the recent meeting to submit
themselves to be catechized by the suffering
stockholders, as one would naturally suppose
men of clean hands would spontaneously
have done, and have rendered such an ex-
hibit and volunteered such aid as would have
been the honest utterance OF men OF lofty
principle who had accepted a high trust and
had striven religiously to perform it. lnvesti-
cation, it seems, is provoked into other
mines and their administration.
Now some of the results, as think, which
are to grow out of this abuse of power and
position by the officers OF mining companies,
are, first, that stockholders will realize that
they must themselves look more closely into
the daily business of the mine. Is it not
il a business to daily look into the business
affairs of the company, by reading the daily
correspondence from the mine, etc., would
be treated coldly, and as il their inquiries
and active interest were species Of espion-
AGE upon the conduct Of the officers and
secretary: Hence, stockholders do not take
so full an interest in the business of their
companies as they would, or should, until at
length trustees come to treat the matter as
one of exclusive control, as their own prop
erty would be, and only i'll yearly reports, or
assessments or dividends, do stockholders
realize that they are owners in the mine.
Secondly. Stockholders should carefully
guard their interests by excluding from their
management officers who hold seat in the
Brokers' Board, for it is plain that trustee
whose profits arise from bearing and bulling
stocks is eminently untitled to conduct, with
an eve single to the interests of his co-stock-
holders, legitimate mining operation; and
the control of a mine, however meritorious,
once in the hands of such set Of trustees,
who hold q controlling vote in its manage
ment, it would seem that it was all but GER
tain that stockholders must suffer. This is
not in the remotest degree intended to reflect
upon the Board Of Brokers. Their business
is legitimate, and is the nucleus or central
meet and for their mutual benefit but it is
incompatible with legitimate mining, mas
much as ayowedly they do not care about the
merit of mine, but whether they can realize
a profit from the sale of the stocks which
represents mine. Hence stockholders
would do wisely to guard well that point.
Thirdly. The bylaws Of every company
should contain provision whereby trustees
can be removed by certain vote Of the
stock, say, two thirds interest, in order that
they might indeed realize that they really
held their seat only during good behavior,
and feel that their business is, while holding
the place of trustee, to carefully guard and
foster the best interests of the company; and
stockholders would hold them to strict ac-
countability. The idea that trustees own a
mine while in Office must be radically rooted
out, and the sooner the better for the interests
of true mining.
p Fourthly. Let stockholders direct trustees
that stockholders are on no consideration to
be excluded from an examination in every
particular at any business hour Of the mine
in all its operations. The proyerb says,
"The masters eye makes the horse fat" 1t
is the unexpected looking into things that
keeps the employees straight. Ones certih-
cate of stock may be deemed sufficient proof
of ownership, if any be required.
Another source of danger is to be appre-
hended from the mode Of conducting busi-
ness when one secretary has charge OF many
companies books. In that case particular
company has no Office in any positive sense.
The stockholder has one-twentieth par, OF
fortieth it may be, of the Office, more or less,
and any pertinacious inquiries amid such
multiplicity of demands as secretary so
circumstanced has upon his time and atten-
ton NAV be deemed and treated as imperti-
nent All legitimate enquiry is repressed,
until a stockholder comes to feel that in re-
ality the company has no office, and he has
hardly right to make proper enquiries into
his own affairs and interests there; while as
he anpears to stand alone he does not want
TO make a fuss, especially as it is permitted
by the trustees under the euphoneous name
Of economy. So that abuse continues, whiie
the secretary reaps haryerst. True, ne
gets from the company but $25 per month,
and a fee for every transfer, it may be and
40 companies make fair profit. One OF the
evils growing out of this amount Of business
in one Office is this, that it all but inevitably
places completely in the hands Of the secrc-
tary of the office the power to make over
issues of stock. The practice will be found
quite universal, l think, TO expedite matters
in the midst of such a pressure Of business
when there are so many company affairs BY
one secretary to be attended to, for the presi-
dent to sign the stock in blank, and as fast
as transfers are made the secretary fills them
up and countersigns them. Under TINS ar
rangement the president is q superhulty 50
far as he is guardian Of the interests o. sne
company. The signature OF piece o. ~.
by the president should be but the eQnAr,ieI,t
Of The cancellations a. duplicate fgE Nnien