Sierra County advocate. [volume] (Kingston, N.M.) 1884-1960, 1892-06-10
NEEDED MINING LAWS.

The fact that stockholders il
mining companies are entitled to
know all about the affairs of the
companies in which they are inter-
ested, Is recognized by the laws OF
California and Nevada. In the
former State there is an act
reading as follows:
Section l. - 1t shall be the
duty of the superintendent on the
first Monday of each month to file
with the secretary an itemized ac-
count, verified under oath, showing
all receipts and disbursements
made by him for the previous
month, and for what said dlsburse-
ments were made. 1t shall also be
the duty OF the superintendent to
tile with the secretary weekly
statement, under oath, showing the
number of men employed under
him, and for what purpose, and the
rate Of wages paid each one. he
will attach to such account full
and complete report, under oath,
of the work done in said mine, the
amount of ore extracted, from what
part OF the mine taken, the amount
sent to mill for reduction, It's assay
value. the amount of bullion ship
ped to the Office of the company or
elsewhere, and the amount, if any,
retained by the superintendent.
Ii shall also be his duty to forward
to the Office of the company full
report, under oath, of all discover
les Of ores or mineral bearing
quartz made in said mine, whether
by boring, drifting, sinking, or
otherwise, together with the assay
value thereof. All accounts, re-
ports aud correspondence from
the superintendent shall be kept in
some conspicuous place in the
office of said company, and shall
be open to the inspection of all
stockholders.
1t was supposed that when that
net was passed it would solve the
difficulty, hut it does not No,pen-
atty was attached to the failure OH
the part of the superintendent to
make these reports, and without
penalty it could not be inforced.
The directors can not be made res
ponsible for the failure to comply
with the law of one of their serv-
ants, 80 it is in many cases dead
letter. We suggest as a modifica-
ton of this act the advisability of
having monthly or quarterly re-
ports made by the board of direct
ors of each company, and having
them published semi-snnually.
Attach penalty to a failure to
comply with the demands of the
act, and make the directors person.
ally responsible if such reports are
not made, to all purchasers of
stock purchased since some speciti-
ed date for the sums paid for such
stock. If anything will check
fictitious dividends and give stock
holders in mining companies the
information they are entitled toI
know, 1t will be an act like this.
1t is essential that these reports
shall be published. 1t is not
enough that they be kept on file in
the office of the company for the
of the stockholders
Not one stakeholder In a thousand
would ever know what they were if
this were to be all that would be
done. Nine-tenths of the stock
holders in mining companies live in
eastern States, and could not know
what the reports contained if they
were not published. 1t would be
very easy thing, too, for fake
company to have an office
in Denver. or some little mining
village, and never to sell any stock
in Colorado, SO that probably no
stockholders would ever have
an opportunity to see its reports.
The object of acts of this kind is to
prevent swlndling. To do this
they must be effective, and expert
ence has proven that the modifica-
lions suggested here are necessary
to maxi them such,