Bisbee daily review., 1903-03-01
cONSOLiDATED PRINTING AZ
 PUBLISHING COMPANY v
PROTECTION TO THE MINING INVESTOR

MINING INVESTOR
 The Pacific Coast Miner one of the mast trustworthy and reliable mining journals in the west has the follow ing article in its last issue:
 There is no country more lax than the United States in its protection of the individual investor, particularly the investor in mines. Advertisements are published and circulars and pros pectuses are issued, where no respon- sibi!ity is attached to the issuers, or 1t may be the maker, of the facts or statements contained therein. Often the capitalization is not even men toned, only the price of shares. Shares in companies are disposed of where the title rests in others, the company having only the right under certain conditions to eventually per feet. These conditions are unexpress- ed in the prospectus, so that the pur- chaser of shares is at times only buy ing an interest in working bond or lease, which is about to be developed with his own money, instead of, as he thinks, purchasing propordonate in terest in the property itself.
 While this country usually takes the initiative in such matters, would it not be advisable for us, in the ab- sence of laws of our own, to draw upon the experience of other nations, and reap the benefit of the conclusions of their lawmakers?
 Tn England, the amount of consider ation. both in cash and shares, going to the vendor of the property, must be stated in the prospectus. All con tracts covering commission must be disclosed, as mast all contracts in any way essential to the company. Allot- ment is to take place at certain spe- cified date, and the directors, pro- visionally appointed, must state in the prospectus the minimum amount of subscriptions, which they will go to allotment For false statements in a prospectus, the directors are held financially, and even eriminally, re- sponsible. As to the Gkipgs of tho company, statements must be filed at Somerset House. The list of share open to any one, on the pay ment of small fee. and the books of the company in the company's office, to the actual shareholders on demand. Heavy penalties are provided for non- compliance with these conditions. The law is perfectly clear. The advantage sained by such legislation is apparent. The company disclosing its business to the proposed investor, the latter has full opportunity to judge of the merit of the scheme, and the amount Of money that will be utilized on the property and that which will go to the promoter He is sure that his money will not be frirtered away in adver- entire working capital is guaranteed, and advertising ceases after the first introduction of the company. In our mining news column, February 14th, we called attention to the Markeen Copper company, which advertised its shares extensively, but did not work its mine and allowed it's property to be jumped. It is to be regretted that there is no recourse for the investor in such a company as this, though in England, the responsible parties would find long, dreary imprison- nent before them. In the daily papers and periodicals throughout the cas-, advertisements are found of Califor' Eia properties of alleged marvellous richness, the names of which are un- familiar to California mining men, Shares are evidently sold, for the ad- vertising continues, and possibly some work is done, but in nine cases out of ten failure will be made, and minirS as a business will be called into qaes- tion.
 Of course, a certain proportion O. wildcats will always be on the market but it is a wrong condition that these xhould predominate over the legiti- mate schemes. Let the would-be ;r- vestor investigate. Let him obtain the information which the promoter is obliged to give in England. Let him accept the reports of mining engineers of known ability and probity, and if he follows the right crowd he is likely ts Il. alGe a success.