Lewiston teller. [volume] (Lewiston, North Idaho) 1878-1900, 1898-07-15

Cripplc Creek gold camp Is rap'"'! III
crea,iny its gold output, a. i SHOWN ~
,h, ..,,rd made for the first hall OF the
year For the six months ending
July | the gold production Tor the III
trrt amounted to - .2WWn. Inc hi"h'"
-, lime ha, record this year OF Sl'3A'
900. being the best monthly showing ~
the history Of the camp. In the face o'
this ever incre, sing production the VI
reserve, Of the several big mines are De
canning greater. \ number of NINE, are
holding in reserve their richest ore bodies
Sever. BLOW to Wildcats.
Helena. Mont. July ll.-Aftcr hard
tonight legal battle Charles Nelly. VINO Is
now in a Spokane hospital totally para
lived will recover $3.50. The supreme
court decided the issues in the case III
decision that j. regarded Il, one OF the
most important to mining men III IN"
history Of the state Nelly SUED 'he
Fourth of July Mining Company for S'o'
O,O damage, in 1894 and obtained Jnd"'
ment for Sl5,GOO. He was brought from
Spokane to testify in the original triu
on Il stretcher at the expense OF strangers
who were appealed to for funds ne
company was in,olvent and another a''
ton was brought against the stockholu
ers to hold them liable for the money. he
company was stocked for S'.'~"'oo' AMI
the Jury found that the property was
worth $225,0O. 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 L.
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 prll-
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.
j. h. Clark of Butte, brother OF w. A.
Clark. and himself millionaire, was the
wealthiest member of the Fourth Of July
company, and the Judgment is obtained
against him, and he announced that he
would pay it Immediately. Nearly S1VN
has accumulated in interest and costs
since the Judgment was first obtained.
Reduce Far Value of stock.
Spokane, July lit has become Al!
most the universal custom in Spokane t.
incorporate mining companies with a cap
italization of 81 10000 in shares of 81
Under the new revenue law stamp tau
of cents for every 800 of face value i.
to be paid on every original certificate is
sued after the law is passed. This woult
mean that il IA company be incorporate,
for 81 100000 and Immediately proceeds
to issue all its stock. as is usually done
the purchase of $500 worth Of stamp
would be necessary to make the certiti
Gates valid. This is tax which will fal
heavily upon many companies which star
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 new company is fortunate enough t
dispose of 100000 shares of treasur
stock at cent per share, $50 Of the 800
so received would have to be contribute
to the government. The injustice of tn
act as it applies to western mining con
panies is apparent when it is considers
that if the stock sold at par for $4,000
the tax would he no greater.
With Smaller Capital.
The result of the law is already appa
ent in the organization of new minin
companies with smaller capitalization
There is disposition to maintain tn
100000 share system. 1t has become
customary that when stock is quoted ;
a price per share, the investor makes II
calculation on the value of the mine ;
that figure for 100000 shares as a rul
taking it for granted that such is II
capitalization.
n company was organized a few da,
ago with capital stock of 10000,
shares OF par value OF ) cents each. Tn
stock is to be put upon the market
par, the officers Of the company declaril
that it should be as easy for the stock
> advance above par at that figure as it
for the stock of fictitious value of
per share to advance from the usual Il
! fling figure at which the early blocks a
: sold. 1t is urged for this plan that
I maintains the million system and tn
the investor may still readily know t
u value OF the property by estimating
!. at the quoted price per share. 1t is +,
Their argued that il the new law shou
: cause companies to organize with dive,
o capitalizations much confusion would
J. suit. and mining men and investors won
e have to keep accurate lists of the co
panies in order to be able to Judge t
u quotation of shares properly. OF seve,
u companies now in embryo almost all "