Gold Hill daily news. [volume] (Gold Hill, N.T. [Nev.]) 1863-1882, 1864-12-12
DISHONEST TRUSTEES-THE
FREEZE-OUT GAME"

The above Is the heading OF an article
in q late number of the S. F. Flag
Whether the remarks are justly applica-
BILE to anybody in this district of country,
we are unable to say; but as the subject
matter Is one of some interest to the peo-
pie of Nevada, we make room for the
article:
Nothing has done more to depreciate the
price Of valuable mining stocks in the mar
ket than the want OF faith which shareholders
have in the trustees Of incorporated mining
companies. So much dishonesty has been
practised by this class Of officers that the
very designation Of trustee" has become
the synonym Of yillainy. Some stringent
law should be devised and passed BY the Le-
gislatures Of this State and Of Nevada to hold
IN check this class OF scoundrels, and until
more security is given to the people, they
will withhold from investing in mining
stocks.
As affairs are now managed By the trustees
of a majority Of mines, assessments are col
lected and the money squandered without
any work being put upon the mine; or, if it
be accidentally discovered that the mine is
rich, then commences the game Of freeze
out" or the imposition Of larger assessments
than the purses Of the shareholders will bear.
Thus, after having held on to his stock for a
year or two, paying up the demands made
upon him regularly, so long as they did not
exceed his neans-by one piece Of rascality,
such as the levying of an assessment Of
twenty or thirty dollars to the foot-as has
been recently done in the Sheba mine-the
poor man not being able to comply with the
svindling demand, loses not only all the mo-
ney previously paid on assessments, but his
stock into the bargain.
To practice villainy like this upon poor
men is Infamous. II is worse than highway
robbery, and deserves hanging.
There should be some law requiring rigid
accountability on the part Of the trustees OF
mines, and until it is provided, stocks must
languish. The public have become disgust
ed and frightened at the exposures of fraud
continually made, until it has come to be be-
ieyed that there is no honesty in man. The
whole system Of stocks, under incorporated
companies, is defective. Mines would sell
much better il they were not incorporated at
all. They could be developed quicker and
better under the management Of original
owners, and sold to greater advantage than
when resting beneath a cloud such as IS cast
over them By the simple statement that they
are controlled by board Of trustees.
We throw out these suggestions that they
may operate in setting the public mind to
thinking. While there is at present no ma
MIA existing on the subject of stocks OK min
ing, it is well known that the largest part Of
our population are directly or indirectly in
terested in this kind of speculation. There
will always, therefore, be more or less inqui-
~ made concerning stocks, and numerous
transactions conducted in them on Change.
In fact, we think it will be found next sum.
mer that, although a sounder judgment will
govern the actions Of men, they will yet, to
as great an extent almost as ever, continue
their operations in mining. Their money
has been invested in it. They must save it
from loss, If possible and in order to do this,
il will become necessary TO make additional
investments. Besides, the panic which has
but recently subsidized in stocks, has
NOT in the leastI affected the character Of
the mines. Those which were good a year
ago, are good still. But they must be de-
veloped. When this is done, it may be
shown that those who took the risks were
not so foolish after all for it is a matter be-
yond dispute, that immense fortunes have
been made on this coast in mining.