Gold Hill daily news. [volume] (Gold Hill, N.T. [Nev.]) 1863-1882, 1870-02-09
ni.nn..in. Tie Painta,

Last Friday we gave a synopsis OF
the new bill proposed to the Legisla-
ture by the San Francisco Board OF
Brokers, for the better regulation and
management of mining companies In
corporated under the laws Of Califor-
MIA, including Of course many In this
State and elsewhere. The points IN
the proposed bill are now freely dis
cussed BY all interested, and from the
financial column Of the alta we en-
tract the following very pertinent
remarks on the subject: lone OF the
evils sought to be done away with by
the proposed bill, Is the controlling Of
the companies by persons who own
l:but little or 10 stock. In this view.
section I'd provides that q majority Of
the shares of any company may at
sany time remove any or all the
Trustees and officers of any company.
Ii Is difficult to see how this can reach
the evil complained OF, even II n
Trustee once elected can be legally
removed until his term expires. This
point Is a matter of dispute, legally.
At present. where 1t Is desired to
manipulate a stock for any purpose,
O majority of the stock Is quietly at
long-hand bought up, and the control
acquired to put in Trustees to effect
the desired objects, and then sell out.
By the proposed bill, instead Of doing
this once a year, it might be done
every month.
Snow suppose q speculative pool
desired to change Trustees to get pay
ment of a claim which the law Will
not allow. They buy freely cash stock
and sell it ut seller GO. When they
have obtained 4 majority of shares,
they effect the changes In Trustees, get
what payments they desire made, and
deliver the stock they have already
sold, and let the she'll take its chance.
ANY number Of such combinations
could be made. more disastrous than
any now feasible. Again, sections 4
and ) provide that I'LL contracts for
crushing ore, ETC., to be made to the
lowest bidderafter due notice, but mo
contract to last longer than three
months" That is, all contracts shall
be renewed every three months. No
one will work on q short contract for
the same terms rs 4 long one, and If
they would it amounts to nothing.
Now suppose q contract was made
with n party for three months. II the
company do not choose to get out much
ore in that three months, but reserve
II for the next three months, the bill
cannot prevent it. Again, 1t Is alleged
that the control Of some companies IS
retained by means Of the neglect OF
stockholders in getting the stock into
their own names, letting it remain in
names whose proxies are controlled
for Trustees who have 10 stock. In
short. the evils which 1t seeks to REM
.edy flow from the absolute neglect of
stockholders to attend to their own
business and interest in the mines with
the same care they bestow OH other
property. People who buy stock, as q
rule. think of nothing but the price;
and if 1t goes up, they sell out and re-
ioice; il It goes down they swear at
the Trustees. They never think OF III
veStigating the property, getting the
shares into their own names, attending
the meetings and exerting their power.
If they did this. much OF the trouble
would disappear. 1t is understood that
measures will be taken to substitute
another bill ut SACRAMENTO.