The White Pine news. [volume] (Treasure City, Nev.) 1868-1906, 1876-03-04
INCORPORATED MINING COM
PANIES.

From the Mining and Scientific Press.l
Few people have any idea how many mining
companies there are Incorporated on this coast
every year. We give each week IN the fresSa
list Of these interpretations, with the location OF
the property, capital stock. names OF directors
etc. These companies are incorporated Win
capital stock of from 81 ,000. 600 to SlO,OOo,oU'
the latter being the favorite ngure nowadays.
To the uninitiated it would appear as If we had
unlimited capital to invest iH mines when SO
many companies are organized with such enor-
nous capital to back them. unfortunately.
however. this capital is only on paper. and q
company with ten millions capital stock may be
SO hard up as to be unable to pay for the print
ing of the certificates which constitutes its only
available assets.
During the year 1875 there were 20s companies
which filed certificates of incorporation in this
CITY. The mines were mainly in Nevada, but
some were in California, Idaho, Utah and Ari-
zons. The par value of the shares is generally
placed at from $40 to 500; but if the s1O0 shares
can be sold for S., or the $40 shares for Is cents
the promoters consider themselves in luck.
Certain persons of some prominence in the COM
munity receive a certain number of shares free
for the use Of their names in incorporating, and
further than this they very seldom know any
thing of the property. OF course one or two in
terested parties or original owners are on the
Board of Trustees. The manner OF incorpor-
ating is simple, and is as follows:
The parties interested in q piece Of mining
property being DESTROYS of forming a joint stock
company, meet and adopt q name for the COM
pany. They then prepare in due form a certif-
cate Of incorporation, which sets forth the loca-
ton of the claim. the intention of the company,
names of trustees. amount of capital stock and
its par value this being signed and acknowl-
edged is filed with the Clerk of the County Court
in the county in which the principal place of
business of the company is located. A certified
copy is sent to the Secretary Of State, and the
, parties owning the mine then convey to the
company all their interest and receive a certain
portion of stock for the same. The proper off,
GERS are then elected, the books opened and the
stock issued. The institution is thus fairly
aaoat, either to become a permanent paying
fixture. or to subside and die suddenly out. Its
existence depends, however, more On the exer-
tons of the promoters in disposing of the stock
at I" bedrock" prices than in the value Of the
property itself.
Although liable to abuse, the best method Of
working and managing the financial affairs Of
a company is by incorporation, as it facilitates
business, enables parties interested to buy and
sell or borrow upon their interest in the mine.
and in various other ways bring undoubted
,aNaG&c -;&t. 10 - - r
ness, the collection of assessments and the gem
cral system Of conducting the affairs Of q COM
pany there is nothing like the incorporation
But the great trouble seems to be that many
have the erroneous idea that the simple form Of
issuing stock must necessarily give value to the
mine it represents, losing sight of the fact that
stock e of any kind which does not pay dividends
is substantially valueless. The public who buy
the stock are gulible enough, however, to buy
stock at what is known rs bedrock prices"
without inquiring or knowing much IF the prop
erty itself, trusting entirely to advance in the
price Of stock for proht. Their are, however.
hundreds of companies Incorporated which are
never heard Of after the names appear as New
interpretations" The system is the only one
yet devised by which money can be raised for
working small properties and in which each in
terrsted party is liable to loss or profit i'll proper
ton to the amount Of stock ne owns.