The Goldfield news. [volume] (Goldfield, Nev.) 1904-1911, 1909-02-27
ANTI.wILDCAr LEGISLATION

ANTI.WlLDCAT LEGISLATION
signed to curb and stamp u wndcattng. Only men who have expert
enc and intimate knowledge OF the mining business in its various
ramihcanons should be allowed to handle tn matter.
wndcaning must be driven from the state, and there are ways to do it
without prejudicing legitimate business, but sol Of thu measures proposed Will
not only drive out wild eating ut corporation operations good as well as bad
Our belief is that the snactmen of the California Law on this subject will
meet all requirements. This law requires the fling OF semiannual reports OF
the most comprehensive kind, with the secretary Of state and with h county
csrk in the county where the corporation has i'll home ONCE In this statement
must be sst out the capital stock. amount sold within the period specihea'
whether treasury Or promotion stock, moun Of money in tn treasury amount
expended. ONCE expense, salaries paid, amount of work done n the property,
and a full and complete exposition OF the cOmpany's transactions FOR the cur-
rent six months. These statements ire accessible at all times to all persons,
and the penalty for failure to file such reports is heavy.
Full light and publicity on the transactions OF w1dcatters will drive them
out OF business. while no legitimate company can object to fling such reports
some genius in the legislature seems 10 think that the stamping of stock
as treasury or promotion stocx would reach the results This would
To- only 20 nonsensical but pernidous; it would not reach the core of the
matter and it would interfere seriously with the stock business. 1t is very
desirable to know. during the promotion period. whether the stock n buys
is promotion stock from which the individual seller gets the benefit OF treas
uy stock, from which the company treasury benefits bt after IN promotion
is completed. and treasury stock issued, he promotion and treasury stock stand
o. the same level and both participate equally id dividends and N voting power.
The chief trouble with such scheme would be to confuse the public
mind and discreditc common stock as conuasted with the. stock marked treas
uy,' An uniformed buyer, With a certificate in his possession marked
treasury would hestat about accepting stock Of the same company
marked otherwise, although in act one would be worth as much al the other.
It would ase a distinction where none, in fact existed.
Another remedy proposed is to require that all tut treasury stock be
pooled and deposited with a given trustee until the treasury stock be sold
This would not work. There ire many companies who wn neve need to sell
III their teaSuryS STOCK. Take ne eAdmP VI ING 1ioionSo UoU0nS"s IVA ~
stance That company out Of its entire capitalization, eve sold but a fen
Thousand shares of treasury stock. The Consolidated has ove a million
shares sin thu treasury but thu common or promotion stock las beentr traded
in for years
Again. the nan who has valuable mining claims that lie sells to a company
fol a certain amount of promotion stock, should have a right to get action on
that stock, otherwise he might lose the value If his property entirely. What
yer value other promotion stock might or might not have, his represents .
certain concrete and intrinsic value to him and he should have thu same right
to turn thu stock equivalent of his claims into cash. as he would have to sell
the claims themselves for cash.
The trouble with legislatures in general is that. special measures Of this
kind, which should be handled by mn with special knowledge, fall into the
hands Ct committees made up Of members the most of whom haven't the re-
hottest knowledge Of the subject tin nand. Committees are appointed for q
session and not or any special measme and are usually made up without refer
nee to their peculiar qualifications. Committees are 100 often named from the
most importunious and, sometimes, the most mpecunious, who are far sighted
enough to know which committees are Il handle the bills that may call forth
a "hand out"
We do not meant to imply that this applies to the Nevada legislature more
thar to my other. In fact there las been very little graft" talk at Carson
City during this session We only wish to suggest the incompetency of legsla-
tive committees generally in the handling of subjects of thu kind under dis
cusHon. r#%&T
Our W opinion is. that if the legislature should adopt the California law
which, has been proven effective, and let it go at that" every purpose sought
would be accomplished and We would be rid of wldcatting six months after
the law should g ntoe effect