The Salt Lake tribune. [volume] (Salt Lake City, Utah) 1890-current, 1907-07-01
MINING AND THE LAWYER.
Argument in Favor of Doing Things
Legally and in Time.

When the legal business OF an incorpo-
rated and fully equipped mining company
Justihes 1t. the services Of law firm may
oe secured for these duties, and when II
has large amount OF property to take
care Of, a special department insures
the, systematic transaction and econom-
lcal management OF it's legal businessi
Above all. the rights of the company
must be defended in their patented
claims, which, under the United states
law OF the apex, are liable TO be brought
Into litigation, In tho first place. every
legal precaution should he given to mals
inS the patent OF the property clear; and
be defective. &c will need to be skllfully
defended-the loss of such rights involv-
ing the very existence Of the company.
In those States where. jlnder the common
law, the property Is included within the
vertical planes of its borders. these diff
cultes are largely eliminated. One has
to but recall the litigation between HeinZe
and the Amslgamated TO realize the i'm
portance of legal effort, says the Mining
and Scientific Press.
The corporate management OF a large
company is particularly under legal ob-
servation. BY Incorporation IT is possible
10 unite the resources Of many for
common purpose, 10 avoid the embarrass-
ment due TO the death OF one OF Its mem
bers, and 10 limit the liability OF any
member. charter OF Incorporation can
obtained under the laws OF any state
and lawyer is properly employed TO do
this. The charter having been obtained,
bylaws must be framed for conducting
the corporation business Of the company.
to provide for its meetings; Officers and an!
laws and the amending OF them from
time to time is legal work. There Is also
the preparation of motions, the drafting
OF resolutions TO be adopted at meetings
of the stockholders and directors OF the
company. and the preparation OF minutes
OF corporate meetings. Nearly all cor
porate action takes the form OF written
resolutions. and such resolutions have TO
be prepared with great care. In case of
the consolidation OF different mining cor
poratons into one. or the purchase Of
property from another, the minutes OF the
meetings of the corporations involved are
frequently elaborate. and must be care
fully framed in accord with the several
statutes covering tho transaction. There
is also the preparation OF the contracts OF
the company when II rents land or
houses. Leases must be prepared to pro-
tect the right OF both lessor and lessee.
The preparation of mortgages. where
bonds are TO be issued calls for the great
est care, The financing OF the COM
pany may depend upon these instruments.
therein, In order to tempt capitalists to
invest in the bonds, and TO provide for
them the security TO which they are en-
titled. Contracts for construction may
involve large sums. and careful specifi-
cations and provisions are needed to pre-
vent litigation. Also. where land or prop
erty is bought, deeds must oe drawn
II. for any reason. II is undesirable to
commit the company TO the purchase of
q mine or other property, or If time Is
peesS spees to t6er He YaIue and tite " options
must be drafted, giving the privilege OF
acquiring the property if desired. Con-
tracts must often be made for the pur-
chase OF fuel. luXes timber or other
supplies.
damage suits for accidents arc unavoid
able. some involving fictitious, exaggerat-
cd or real injuries. Where the company
is operating smelling furnaces, which
yield noSlous gases. da,nagcs 10 land or
stock may be claimed on this account
also. Companies receive and dispatch a
large amount OF ore, products and sup
plies by rail- and since railroads insure
claims for damages. where accidents. and
especially fires, give rise TO such claims
The INJURY or delay Of materials in tran
sit may also be productive OF claims OF
the company against the railroad, such
claims. when they cannot be adjusted
peaceably, ultimately give rise TO suits.
but even before suit is brought legal ad-
vice Is necessary In the process OF ad-
justment. The company may be harassed
by garnshmcnt OF the wages OF its en-
ployees and the danger of double pay
ment must he guarded against. The ar
rest of wrong -doers has TO be made un
der legal advice. as upon failure of any
criminal proceeding suit aga inst the
company 5or malicious prosecution NAV
be expected. The relation of the COM
pany to the State calls for legal services
Sometimes II may be to defeat hostile leg
lslatton In the Congress or In the Leg
islature. The subject OF taxation is al
ways involving some controversy. and
may give rise TO litigation.
: II anyone is injured or killed, Ii is the
business OF the lawyer to reach the spot
promptly and eDdeavor TO settle claims
without delay. Even small delay in
wolves having to pay the claimants law
yer as we'll as himself. The statements
OF witnesses are to be taken down in
writing. both for eplisting the witness on
behalf OF tho conpany and for res ording
the facts before they are forgotten The
Importance or such workSis seldom op-
rreciatea but as rough estimate it is
about three times as expensive TO dis
pose of claim by litigation as by
amic lble settlement. The effort TO settle
should be continuous instead OF being
dropped until suit is brought. 1t is false
economy not TO have this strictly looked
after In conclusion ID may be remarked
shat Just rs in. medicine, it IS cheaper
and more effective 10 prevent than to
cure disease so In the conduct cG the af-
fairs Of a mining company 1t is better 10
consult the lawyer before than after
ward.