The Salt Lake tribune. [volume] (Salt Lake City, Utah) 1890-current, 1907-05-27
TREASURY VS.. ASSESSMENT.
Another View on Inadvisabillty OF
Making Stockholders Pay.

In Nevada twenty years ago there was
but one method employed In providing
funds for operating a mine that was not
individually owned or held in simple CO.
partnership and that was by assessing
the holders OF interests. In those days
a share usually represented a linear foot
OF the length OF the claim. Although no
particular foot was specified In the GER
thcate OF ownership, the holder had a
feeling that he possessed actual realty
In fee simple, and this is one OF the
reasons why the old-time Comstocker
the companies that operated in the shad-
ow of Mount Davidson. But this feeling
OF landed proprietorship received Sc
we're blow when the mine needed addi
were due or whenever squeeze" was
put up by the mysterious powers that di
rected the administration of the bonanza
properties on the great lode. for even
the bonanzas were occasionally tempo
rarly embarrassed. while the ordinary
mines were always empty of treasury.
except Immediately after calls upon the
shareholders An assessment was levied
the only possible recourse, Some could
pay and aid Many holder of a foot
or a fraction OF foot borrowed upon
his realty and personal property and
even sold feet in other mines to pay
the first few assessments. and then, his
To the highest bidder at delinquent sale.
The highest bidder al such sales never
offered anything near the price which the
stock would command at any other time.
for delinquent sale is an exaggerated
bear raid In Its effect upon the market.
The holder OF the delinquent stock re-
costs, II there was any. and went his
way. a sadder and wiser man, TO the
home that was mortgaged to pay Drevi-
Gus assessments and took up the burden
OF life where he had left II years be-
fore, to again accumulate and again buy
a foot or two in. the mine that had cost
him so heavily. for the spirit of specula-
ton was IN the air on the Comstotk and
occasionally one OF the small fry made
a winning. The accommodations Of Mack
ey. Flood, o.Brien and other Comstock
make good reading, but greater heart in
terest would attach to the tales of the
loser their broken spirit, their desolated
homes. and sometimes their suicides.
lode thus far discovered in the history
of the world and there was the frequent
OF unfortunate, reckless speculation.
In this new era in Nevada the assess
ment system has been superseded by tho
ireasury nsl stock stock Idea and splendid idea
mining stock may put his entire savings
In mining securities and nothing can take
them from hm. Once purchased. all eX-
per and he will receive dividends 1t
may meet with adversely and the worst
that can befall him is the disposal of his
not be taken from him by the machina-
tlons OF the officers of the company.
During the period Of development before
ore is encountered in paving quantities,
the treasury reserve is the safeguard of
the stockholder Little by little this re-
serve is placed upon the market and the
accruing money lis used to continue the
development work Should bad luck be-
fall the management and the original
treasury reserve be insufficient to place
the mine upon paving basis there is a
StOHkhol6prS
by majority vote add 10 the capitaliza-
lion. the new Issue to be placed In the
treasury for prosecution of further work
This procedure. Ii must be admitted re-
duces the pro rata value OF each share OF
stock temporarily. but new developments
through the expenditure OF the additional
issue of treasury stock frequently recon-
pcnse for the momentary shrInkage in
values. AT all events. the holder of non
assessable stock need not scan the news
papers 10 see II he has had levied against
his holdings claim that he will be un-
able TO satisfy. but must relinouish his
certiiicate.-Journal OF Commerce