Arizona weekly citizen., 1893-06-17
How TO INVEST IN MINING.

In an article in Engineering Magazine,
MIR. Albert Williams, Jr., an eminent
mining engineer, gives some hints for
the benefit of investors in gold and
silver mines which are worthy Of general
consideration. He deals in the begin
ming with those cases in which small
investors are troubled by rumors re-
flecting upon the management OF proper
ties in which they have an interest.
First, he writes. ascertain definitely
whether there are reasonable grounds
for fcomplaint. Hear both sides Get
the commercial rating of the men &C
cused. Find out what the local opinion
is in the district where the main is
located. If the opposition seems to
have a good case and the trouble con-
tlnues, the dissatisfied shareholders
should put themselves in communities
ton with each other, with view to con-
certed action. This can be done by
advertisement or correspondence in
prominent mining paper, calling meet
ing to exchange opinions, ascertain
facts, estimate strength, and decide
what, If any steps should be taken. Ii
the opposition finds that it holds con-
trolling interest in the stock, remedial
measures might be taken without go
ing to law, by deposing the incumbent
Officers and assuming the management
and responsibility Of the .company's
affairs.
The courts have ruled that share
holders have q right to examine the
books of corporations. 1t has also been
held that shareholders may enter and
examine to their own satisfaction a
mine they are part owners in. Whether
they may send in professional expert,
not himself interested, is debatable. But
a representative committee or share
holders could be authorized to make
both examinations (of books and mine)
A CASE having been made out, the prop |
erty having been shown to be worth |
fighting for, SO that it would not be |
throwing good money after bad, prose- |
cution under the civil code would be
next in order, provided the dissatisfied |
shareholders were willing and able to 60 |
to the expense and delays of somewhat
dubious litigation.
Much depends upon the laws under /
which the company has been incorpor-
%ol I'll, - 10
state in which the mine is situated. |
These laws vary greatly in respect to
the amount Of protection afforded to
shareholders. For example, in some
states assessment notices have to be
served personally and the delinquent
sales made within the state, on further
service of notice. In other states. the
charter laws are so lax that man does
not know whether he owns his stock or
not illegally speaking,) and if it stands
in the name of q trustee he has to get it
transferred before be can vote it. 1t
requires experienced mining lawyers to
unravel the mysteries of mining and
corporate laws. At the bottom, the
laws and the courts mean well enough;
but it is expensive to reach the bottom,
and suits in equity are especially IN
certain.
To be perfectly frank, here is the
moral: Small investors in mining
who accept the representa- ions
OF prospectuses and advertisements as
gospel, who expect to become million ,
aires at jump by putting in few
dollars or hundreds, who do not take !,
The precaution of finding out before
hand what they are going into, do net
deserve much sympathy. Many of !
hem would buy "green goods if prop
srly approached. The heavy investors
have the advantage of impair
ial expert advice, and can at all events :
protect themselves in a measure. The II
title minnows have small chance, and q
t is to catch them, not the big fish, =
hat fraudulent mining schemes are put ID
orth.