Idaho Springs siftings., 1902-12-06
THE IDEA
BECOMES
POPULAR
Siftings' Proposition to
Protect the Eastern
Investor Wins.

During the past week there has been consider
able comment favorable and unfavorable, the
position taken by this paper in reference to the en-
actment of law or laws to more certainly protect
the Eastern investor. The great majority of this
comment has been favorable and a half dozen let
tiers from subscribers over the country show that
there is but one sentiment far the investor is
concerned and that is that the paper is right and
that laws of the character mentioned are needed.
While the Idaho Springs district is pretty free
from the vicious classes of propositions and always
has been, there is every reason why such laws ought
to be passed so that such conditions may continue
and so that different conditions may be brought
about in some of the other districts. Denver at
torney writes follows but asks that his name be
withheld be is preparing article for the paper
that will cover the entire ground:
''There is old law which states that man
must look before he buys or words to that effect
This old custom or law has worked a hardship to
the investor in mining stocks and oil stocks for they
are not in a position, those who invest in these
stocks, to take the look. Many states compel cor
porations expecting to exist through the sale of
stock to place some guarantee with the state As
a matter of fact insurance companies must do that
in this state Such law might work hardship
on the development of the state, and am inclined
to believe that it would but there should be some
happy medium that could be reached whereby the
investor could receive better protection and the de-
velopment and progress of the state would not be
retarded. am busy with the election cases this
week and will be next but between this and the
first of the year will give you my opinion in full
Your idea to protect the foreign investor is very
good one"
The comment of the state press has been ex-
ceptional1y favorable on the stand taken by this
paper 1t would require two or three columns to
reprint all the comment We take this occasion to
thank the newspaper men for their support.
good suggestion comes from one of the most
representative mining men in the city. He IS the
manager of two producing properties and man
who is acknowledged to be an authority on mining.
He states that law compelling officers of compan-
les to make itemized reports each month to each
stockholder would cover the ground thoroughly.
While these companies would not make their re-
ports of public record it would answer the'same
purpose to have the stockholders know what was
going on and where the cash was being expended.
This gentleman states that much cash is squandered
that is accounted for only in a lump sum.
Another suggestion comes in this shape from a
mining man who simply signs it Mining Man" /:
81 believe the secretary of state should have the
appraisement of three men to appear OF record to
show what the property cost and then not allow
the capitalization to exceed four times the value Of
the property" This is an idea worth considering.
1t would put stop to the plan sometimes pursued
whereby property purchased for $1,000 is some
times capitalized at 81 100000 or 100000 when
the proposition is stocked.
A subscriber in the East who has purchased
considerable stock in one of the propositions that
claims to own considerable property says that he
finds that the company held only bond and lease
r 4-I Ae
result there is not 81 worth of anything of value
behind his stock He says that the idea of stock
ing company on a bond and lease and selling any
stock to the people is system worse than high
vyav robbery" This brings out another idea