The Salt Lake tribune. [volume] (Salt Lake City, Utah) 1890-current, 1908-11-27
HOW STOCKHOLDERS
CAN BE PROTECTED
Matter Attracts Attention, but
Solution Hardly Has Been
Discovered Yet,

When a technical society that has hard
ly recovered from the excitement OF its
debut attempts to arouse its members 70
enthusiastic discussion Of problem That
has long challenged solution by senior or
ganizauons. there is manifest the spirit
that seeks the opportunity TO win Gov
eted laureis. Whether the Minlng ana
Metallurgicai Society Of America takes
action tending toward the better protec-
tlon of mine investors will depend upon
the agreement OF It's select membership
Evidently there are as many sugSes-
lions for reform In The customs of inter"
esting capital IN mining ventures and OF
reporting the work done, as there ale
uuIerenurs OF OPINION as TO the corrsc.
uelnItlOn OF investment anu sPeEu!a-
Llon,'
IN purchasing anything, when the Tlsk
assumed Is GepenuenL On the opportunity
TO reanIe an unusual proht IN quick lii!e'
Tue L!aGlng oil suCn money may De calieu
''syecuauon." II the pTiuClple Is put
.nto a conservative enterprise and Is nelG
Tor the interest tuat II ytelas anu because
| lne security mas IL nXed Value, inc trans
aCuon may DC consldeIcu an invest
mcnt." Recognizing, however, that any
LnIng when can ue used as q ncdluh el
eNCnange Is necessarily SUBJECT 10 uuclud-
| tloa III value, moie or less, there nat
uraly arises a doubt as 10 tho exact
| meaning OF the operation OF piac'ns sur
auS money. Speaking oiLnanus an M
\cstment' is q pruuGuitIIy, q "Specula-
| uon" q possibility, eaCn governed ny lac
! tors tnaJ determine citner safety or rlsk.
How TO project nine investors seems 70
| oc as difficult OF Accomplishment as lI!S
salvation ot crrlng souls. Academic dls-
| GuSsIons, wnCle,n the LheorlsI mas toe
| center OF the SlagG and the man OF pEdC-
| Lcal experience slls III the auolenCe, are
not always productive OF results tnat VII
cement all concerned. Neltner Is IL ac-
| Vlsap!e TO trust the leaueTSnIp OF pro-
| posed reformation eEure!y 10 one man
| whose knowledge is all practical and lacks
| Luc paslc theory mat would MAKE nm 4
| better thinker and WORKER, II there Is TO
| result mutual Dcnent from discussion
| WnICn is so important as the Oetlct pro-
| lection OF mine investors, tnca we should
| .4ear both SIDES OF the question. BE-
| cause mankind is won't TO err, oTten unln- :
| Lcntlonaiiy, and because some people WIll
| never lealn ny the experience OF otheTs
! should not discourage tue effort 20 riSnl
| Jnc wrongs tnat are known TO planGR taS
| Ialr couutenanCe Of mining as !sglll-
| mate business, BY legislation 1t may oe
| possible to remedy cer1d.n evils, but un-
! fortunately ell the laws tnat nave oeen
| enacted 70 protect investors are SO seldom
enforced that 1t seems RIDICULOUS 20 Psu"
| Llon the judiciary further,
! What the professional men, members
| Of the Mining and MetallurSIcal society
| of America, American Institute OF MlnlnS
| Engineers and other equally reputable or
| ganl1aIions Gun do to Ta4se the standard
| of mlpe investments Is TO propagate the
| spirit Of honesty by refusing 70 continue
IN tue service OF those VINO VIII not deal
| fairly with investors. To report con
| eC!entiously on an enterprise In It's lEitial
| stage is not sufficient; consulting ehSl-
neer or metalurgist who continues IN the
| employ Of the operator is. equally open to
the criticism of shareholders VINO are not
correctly advised as TO the work done o.
prospecis OF receiving an equitable return
on tueir investment. Circumstances may
alter the opinion of . consulting engineer
or metallurgisr with regard TO the Wis
dom OF serving Interests that are hosti!e
to the stockholder; but when L proies'
sional man loses sclf-respect Tor the puf,
| pose OF feathering his nest, II IS sac
commentary. Fortunately there are a!
good men directing the destiny OF tht
| mining industry today as there ever were
men who fought for the freedom OF theil
country. and it Is this confidence which
| encourages us In the belief that Wner
united professional men can accomplish
something toward protecting mine IN
| vestors.-MiauG World.