The Goldfield news. [volume] (Goldfield, Nev.) 1904-1911, 1908-09-19

7 @. D.. San Rafael, Cal You ask
how a company without money or s'ocH
in the treasury could clear itself OF
debt and prevent attachment. ~
il is an assessable stock, the seheme
would be to levy an assessment Ii u
mons ssessabie stock, a voluntary assess
ment could be called for at so much per
share. This is rarely practicable, tor'
as a rule, only a few consent 10 assess
ment and it is manifestly unfair for a
few to put up for the whole, and there
is no way of forcing the d~elinquents 10
come in. (2) The company might In
crease its capital stock for treasury
purposes, sell the stock and clear up IN
,ebtedness. If the general public couid
NOT be induced to subscribe offer the
stock at a lower price to those who are
already stockholders, many OF whom
would doubtless be glad to put up a III
tie more money rather than lose what
they have already invested. t3) Dor
row the money from one or more frien't
w stockholders and give a mortgage.
In this way the immediate and pressing
debts could be paid, such as attach
ments, etc., and time enough be Cd
tanned to ssturn round OF course the
property might be lost in the long run
through the foreclosure of the mort
gage. but it would be lost any how II no
effort be made to relieve the attach
ment or other debt. az Rather than
increase the capital stock to replenish
the treasury, or borrow money, stock
holders might consent to surrender a
certain percentage of their stock 10
make up a treasury fund. A number
might object to this, however, the same
as to a cash assessment. (5) You say
YOU object to increasing the capitaliza-
t;on as the value of the share is de-
creased in the same proportion. That
is true: but what if you should receive
a certain proportion of the increased
capitalization. For instance, a com
pany is capitalized for 100000 shares
and the stock is rated at so cents per
share. The company is in debt, with no
money or stock in the treasury. The
capital stock is increased to 2,00o,ooJ
shares, one half of which is placed III
the treasury, and one half distributed
on the basis of one share for two
owned by the individual stockholders.
You had 1000 shares originally. You
get 500 more in the transaction, making
1900 in all. By the increase to 2,o0o,-
900 shares your shares are worth just
half what they were. Your 1000 are
worth $3.50 instead of $500; but your
holdings have been increased by 800
shares, and 1900 are worth 1915 in
stead of $500-that is, according to
these figures. But in reality by this
arrangement, the 1900 shares at 10
cents would be worth a great deal more
that the 1000 shares at so cents, for n
the latter case the company is broke,
in debt, and subject to the loss of every
thing, making the stock absolutely
worthless; whereas, in the former case,
the company has a treasury with which
to pay its indebtedness and put the com
.pany on it's feet. A live nous is
greater than a dead lion.
e. S., Columbia. O., and others. On
September 4th a meeting of the stock
holders in Gold Bar Extension was
held and, it is claimed, the boundary
and other disputes were settled and the
necessary signatures attached, previous
to forwarding the document to the see
rotary of state. The company officials
state that as soon as the papers are re-
turned from Carson City steps will be
taken toward patenting the property.
The capitalization has been increased
to a million and a half shares. A two
years lease on the property has been
given Indiana people, who are expected
to arrive tomorrow and Immediately
begin work on the leasehold.
H. A. G., Red Bluff, Cal. The Miss
Jessie ore shoot, from all appearances,
is still making for the Booth. (2) The
Booth is not working on company ac-
count, but there are two leases working,
one the Durgin lease on the company
shaft, and the other, the Z. C.. Smith
lease, between the company shaft and
the Red Top, supposedly where the
Miss Jessie vein enters Booth ground.
(3) Leasers are working the Cracker
jack. (4) No work being done on com
pany account on the Orc, but two leases
have been let and will start operations
soon.
R. L. M, Chicago, and others. The
Five Friends lease on the Last Chance
of the Laguna, is $50 feet deep. Cross