Adams County news. [volume] (Ritzville, Wash.) 1898-1906, 1898-07-13

present year. For the six months ending
July the gold production for the dis.
trict amounted to S7,2OO.OO0. The month
OF June has record this year OF 81 300,
600, being the best monthly showing in
the history OF the camp. In the face OF
this ever-increasing production the one
reserves of the several big mines are be.
coming greater. 4 number of mines are
holding in reserve their richest ore hodieS.
severe Blow to Wildcats.
Helena, Mont, July ll.-!Aftcr Il hard
fought legal battle Charles Kelly. who Is
now in Spokane hospital totally para.
lyzed. will recover $22, 500 The supreme
court decided the issues in the ease in a
decision that is regarded rs one of the
most important TO mining men in the
history of the state. Kelly sued the
Fourth of July Mining Company for $50
600 damages in 1894 and obtained a judg.
ment for $4,000. lie was brought from
Spokane to testify in the original trial
on a stretchcr at the expense of strangers
who were appealed to for funds. The
ton was brought against the stockhold-
ers to hold them liable for the money. The
company was stocked for 81 800 900, and
the jury found that the property was
worth S22j,OOO. The court holds that
stock is unpaid even when the prop.
erty has little value in proportion to the
stock issued against it, and that the hold
ers are liable for the debts of the COM
pany. The decision is regarded as blow
at "men of influence" to whom stock il
issued to induce them to lend their names
to an enterprise. The court says, how
ever: Good faith in the valuation of the
property is all the law demands BY good
faith is meant the actual belief of pru-
dent business man in the value put upon
the property. Beliefs based upon vision.
ary, speculative hopes will not relieve the
stockholders The decision of the court
will have deterrent effect upon wildcat
companies all over the west.
}. X. Clark of Butte, brother OF w. \.
Clark, and himself a millionaire, was the
wealthiest member Of the Fourth of July
'ompany, and the judgment is obtained
,gainst him, and he announced that he
ould pay it Immediately. Nearly 5000
has accumulated in interest and costs
since the judgment was first obtained.
R.s.c. Par Vain. .f s,.cL
Snolano Jlv nm ha. h.oomo a..
mas, ,ho rn;yor..l o,stom in snolano 10
;.,a...,,a..,,1 .,,;,;,,. ,l,,,,,,,;o, IN, ,,
itaIiz,tiop of M 0OO O0O in shares of Al
Under the new revenue law a stamp tax
Of ) cents for every 800 Of face value il
to be paid on every original certificate is
sued after the law is passed This would
mean that il a company be incorporated
Tor Sl,OOO.OOO and Immediately proceeds
to issue all its stock, as is usually done,
the purchase Of $500 worth Of stamps
would be necessary to make the certifi
'ates valid. This is a tax which will fall
heavily upon many companies which start
with no other capital than an undevel
oped claim and look to the public to pro-
vide the means Of developing it through
the purchase of treasury stock at a small
figure. Reduced to everyday experience,
if a new company is fortunate enough to
dispose of 100000 shares of treasury
stock at | cent per share, $50 OF the $1,000
30 re; eived would have to be contributed
to the government. The injustice Of the
act as it applies to western mining com.
panies is apparent when ii is considered
that il the stock sold at par for 100000
the tax would be no greater.
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