Blackfoot news. (Blackfoot, Idaho) 1891-1902, 1899-01-28
AssEssABLE MINING STOCK.
Some of Its Advantages Pointed Out by
the Mining Reporter.

the Mining Reporter.
Under Colorado laws n company can
be organized with assessable stock, II
desired. 1t has never been popular
with promoters, for the sole reason
that they do not think the public will
care to buy 1t and the average promoter
has no object In view except selling
stock to the dear public. But II a mine
owner or promoter organizes company
for the purpose of developing u pros
pect into a mine, or doing legitimate
mining for mining profits only, there is
every reason why he should prefer an
assessable stock. Ii, however, his OBJ
Ject Is only the sale of stock, and, In
case the prospect should prove yalu-
able, TO rob the stockholders out of II,
the worcestershire plan offers particu-
larry good advantages. In the case of a
worcestershire company having a pros
pecr which becomes valuable either
through development. or, as more often
the case In Cripple Creek, through the
development of adjacent property, ii
Is very easy for the inside promoters
to swlndle the stockholders. They
run the property in debt a few hun
dred dollars, or perhaps mortgage 1t,
and then have 1t sold at sheriff's sale,
and become the final owners them
selves. This is done over and over
again. 1t can not be done with assess
able stock, and our laws are so framed
that stockholders can protect them
selves in assessable companies. In
case of an unjust or understandable as
sessment for freezing OUT purposes,
an application to any District Court
Will result in the appointment of re-
ceiyer to protect stockholders inter-
ests. Courts in Colorado don't hesitate
10 make things very warm for swind-
ling directors. The difficulty is TO get
at them in worcestershire companies.
In Instances, too, OF Incompetent
though honest management, debts may
be accumulated and property sold for
them. This Is more often the case than
to have 1t done by scoundrels, but the
result of loss to all interested Is the
same. This, too. is impossible with
assessable companies.
Every company owning undeveloped
or non-protit paying mining property
must have money to expend TO reach
the profit condition. Is Ii better 10
raise that money by selling treasury
stock, or to have assessable stock? We
believe the history of mining most en-
phatically gives evidence that the lat
ter is preferable. IL IL be raised by
selling treasury stock, always sold at a
very small figure, when 1t Is all sold.
and the proceeds are not sufficient to
put the enterprise in pay, it must shut
/ down or borrow money-if the latter
| can be done. Ii the amount borrowed
Is not sufficient, the property Is lost,
and all investment Is an entire loss.
The average company raising money
( by selling treasury stock makes q RI
| dlculous display of itself to every we'll
! informed mining man. It sets forth in
It's prospectus that 1t has 100000
shares In Its treasury which win be-
sold for two cents per share. Come i'm
row, before the rush takes It ALL
Now, the 100000 shares will raise ST.
600, which is such an insignificant sum
for mining development that the pro
1ect Is seK-condemned as having been
Matched by men who are either ignor.
ant or rascally. 1t Is too thin bunco
game to merit anything but contempt
and It's promoters advertise themselves
as tinhorns or fools.
Given an honest. capable company
management, with n fair prospeci
which warrants development an as.
sessable company Is the only kind
which good Judgment dictates should
De organized. If 1t has not that kind
OF property and management. any old
kind OF thing will do, because the re-.
suit will be the same I'm all cases-total
loss OF all invested.-Mining Reporter