The Seattle post-intelligencer. [volume] (Seattle, Wash. Terr. [Wash.]) 1888-1914, 1897-01-20

The NtetCrsz B2ar1 OF Trace aas sent ID
the provincial minister o. mines report
cor tanning Recommendations IL regard 70
the incorporation OF mining companies IN
British Columbia The report says that
the system Of cA1ltz1iztng slightly 6syel-
ope6 mineral claims Ear large sums OF
money ana selling the stock al a small
percentage OF the par value is, N the
case Of the Liquidation CT the company,
fraaght with serious conseq aences 10 the
holders, and. IL any event, preIudictal 10
the proper development OF the mine.
The laws OF British colassbsa are op-
posed to q company selling IT'S stock ar
discount yet these have been evaded IN
the case OF some mining ventufes- Dis
continuance OF this practice and the com
plizncs with the provincial laws VIII Re
some guarantee that companies are form
Cd for The purpose OF working the mines
instead OF unGuly enrlc5ing the promoters
OF the schemes. The incoming council
should look into this matter and, II neceS-
szry, bring X 20 the notice OF the provia-
cial government with a view OF remedial
legislation. Fully realizing the great I'm
portance of the subject, your committee
on mines and mining have had several
meetings. discussed the subject with many
persons and correzponded gtth the
boards OF trade OF Montreal, Toroutq>and
the stock exchanges OF Montreal aa1To-
ronte. besides the general hangers OF sew
eral OF tbs large financial institutions in
Canada.
Replies were received sfrom several,
among them being one from the Montreal
Board OF Trade indorsing nearly all the
suggestions Of the committee. After con-
sidering nearly al the different phases OF
the subject and looking at the matter IN
ifs broa6est sense, and with a sole object
of bringing the mining industry OF the
province 10 a sound and healthy basis your
committee make the following recon-
mendations as the basis OF your action, IL
thought necessary 70 bring the subject 20
the notice OF the provincial government:
NO companies TO be registered TO do
business in this province except those or
ganlzed under British or Canadian acts.
The scale Of fees TO be charged by the
government or al mining companies in
eorporated IL suggested. running from SIS
for 500 Gao capital: 500 for $50 o0o, and In
creasing 500 for every additional 500 GO
OF capital
Not less than ons-third OF capital 20
De set apart for working capital and
which shall not be sold at less than par
value.
Careful revision and consolidation of
the companies acts particularly as APP
plying TO the organization Of mining COM
panies.
IF at all possible. to prevent the repeti-
ton OF the names OF claims
Consider the advisability of allowing the
head offices OF companies organized under
the British Columbia act 70 be located In
other parts OF Canada, and boards OF direc-
tors OF such companies not necessarily 70
be residents OF British Columbia A British
company has It's head Office In the United
Kingdom and has its board OF directors
there.
'srhe provincial government 10 require
from all mining companies Incorporated in
British Columbia or registered under the
companies act. foreign an annual or semi
annual statement. which statement should
be published in pamphlet form. so tina; in
vestors at home and abroad would be able
70 Judge OF the position OF their invest
ments. The statement should be In tahu-
lated form. not too much in detail. but Civ
Ing thu most salient points, after the style
OF the Dominion banking returns: Author
lied capital; treasury shares. each. sold;
treasury shares unsold shipment OF ore.
tons: worknen; average value OF ore
shipped length of time closed down; value
OF plsnt and machinery.
That no shares (other than treasury
be permitted to be issued until after
certain percentage OF only per cent? OF
the treasury stock has been sold, and the
money IN the hands OF the company
1T Is 70 be expected that some OF the
foregoing suggestions VIII Re too radical
but the subject must be faced squarely.
Are We going 10 permit our mines 20 be
operated by irresponsible persons with no
possible control OF their actions, or are we
going 70 build up our mining industry upon
a lasting basis. We al believe that we are
on the eve OF an Immense development OF
our mineral interests. 20 take rank among
the foremost IN tha world II is therefore
| Incumbent upon Us % lay the foundation.
not looking 10 the present only. but 70 the
future. 50 that mining In British Columbia
viii he SYNONYMOUS with fair and square
business propositions. organized On a basis
OF British integrity and protected By laws
that are already the admiration OF all WISH
sors % our mining camps"