Arizona weekly citizen., 1882-01-22
AssEssAsLE AND Nos-AssEssABLE STOCK

The most successful, and in many in- stances, the only way in which extensive mining properties can be operated, is by means of aggregated capital in the shape of stock companies. There is a wide difference of opinion as to the way in which companies should be organized, whether with assessable or inaccessible stock.
 The Canon City, Colorado, Mining Ga zette, discussing the comparative merits of the two systems says:
 Much has been, and more will be said and written, for and against both meth. ods, before the irresistible logic of events and results point out that winch is best. Each has its advantages and each is subject to abuses, for under ex- isting laws stockholders in Pacific coast mines can be assessed out, and those ID the mines of the eastern slope can be crushed out, by the exercise of the un- limited powers conferred upon directors.
 Reckless and extravagant management can and often does exhaust the available resources of mining companies, and plunge them in debt, as IS the case III all industrial enterprises. When thls oc- CUTS on the Pacific coast, the power e1- ists to compel the payment of assess ments or forfeiture of stocks, and merl- toriOus properties are thus kept Tree of debt. Under Colorado laws stock holders in mining companies cannot be assessed to develop a mine or pay its debts, amp many excellent properties are tied up by creditors. and fl not sold re- main idle for years for the want of few thousand dollars.
 In the one case, personal liability ends with the payment of assessments to ex- tricate mine from financial difficulties those who are able to pay do pay, and the property remains in possession oi men able to develop and make 1t pro- 2 ductive. In the other, responsible share owners in capitalized properties part with their holdings at the lntlmatlon ol disaster; the majority of stock IS left on the hands of persons unable to bear the loss, and the property IS at the mercy oi creditors.
 In many instances these creditors are officers of the companies, but the result is substantially the same-that IS, total oss of their holdings to share-owners IT tRe pr4PSiss s 9 5s eittle1I 2A-ufb mines and mills True, this last anger might be removed, or lessened in some degree, if companies organ izei upon the nOn-assessable plan would place one-half or more of their capital ' stock in the treasury for working pur ID poses, but promoters of mining compa nies rarely have the courage to adopt that measure of safety, and ln four Ol five such case. tine resultant consequence 2 exhausted resources before prOduc - lon is established
 - With such amendments to our cOrpor alton laws as will fix a limit to the capl talizatioD of mining properties and per init the shares to be assessed at stated intervals, for sums, which Tn the aggre gate, should not exceed thelr par value many of the Instructions now Tn the way of developing the mineral resources of tke state might be removed, and w have written this for the purpose oi drawing out the opinion of others on ; subject of interest to all ColOradoans, 1T -1--Sa-ane that free discussion may lead c. the Solution of problems which nov retard progress.
 The evils of which stockholders com plain appear to us to be beyond th' reach of legislation. Too many inves tors look upon mine as an ine1hausti ble supply of wealth, and expect divi dsnds from the moment they make thel investment. They expect that a min will pay, no matter how extravagantl. managed. Even small mine will pa. if it is properly handled. It Is like an, other business; the amount of expendi ture it will stand depends on its sig and richness.
 4 majority of the abuses which ar spoken of in connection with discus sions cf the kind of organization bes adapted to the successful development and operation of mining properties de pend more upon the character of th management than the character of th stock. If the management Is compe tent and honest, and the company has mine, either plan of organization vii be successful