The Wallace miner. [volume] (Wallace, Idaho) 1907-current, 1910-02-17
JAQUlSH ON LEGISLATION


JAQUISH ON LEGISLATION
treasury stock the directors levy assessment and
with the development Of the property.
That the officers Of the company make detailed reports
the stockholders in writing at least often assessments ae
levied but event longer intervals than once ~ three
months showing the Of received since the last pre-
cedng report the from which received
the Of monies expended under general headings such
materials supplies labor Office and management expenses
etc. number Of employed amount and character Of work
done last report Of accounts payable and receivable
balance hand date Of The company should
be required furnish each stakeholder map OF the prop
erty made from actual survey The law requiring such reports
be made necessarily follows that false statements would
render the officers making them liable to the penalties usually
prescribed By law for such Justification.
quite possible than when law OF the foregoing scope -
drafted other minor points would require coverng but this Will
provide al excellent fundaonto build and will be found
to very nearly cover the field
Conclusion.
Having the legal power levy and collect assessments on oil
stock outstanding would enable the to sell its treasurstoc
price Thus the stock be rapidly placed ana
comparatively small As considerable amount
Of all the treasury stock has been sold the company has very
substantial fund with which begin develop the property AZ
soon money needed assessments levied Then the
promoters and all their associates must put their shoulders the
wheel and help push the load The treasury stock buyers are
required put the and take all the risks Nor VIII
the company fail for lack Of capital because every stockhodr
the front and do his share he must part with all
part his stock When everybody contributes it necessarily
stakeholder less than half OF them are caeo upon
to do the whole thing
Asessabe stocks do need be pooled in order to protect
the copans treasury The stock be freely traded in on the
market without any way interfering with the ability OF the
company finance enterprise In fact the the stock is
traded and the better market has, the better for the stock
holders should be able sell what he buys whenever ne
It experience for to find themselves
need of money If they have bought mining stock when they
the money spare they will certainly appreciate the ppor
un sell again whenever they find themselves short cash.
The organizes assessabe company knowing
that the time will when he will be called upon to put up
along with the rest of the stockholders certainly
ing the mining business with the intention Of mining the
ground and he not likely waste his time and money on
questionable property.
Each assessment being limited per Of the capza
ton MEANS of course of not exceeding cent
per share stock Of the par value Of dollar The buyer
knowing that he be called upon for than $40
thousand shares sixty days the closest limit make
his calculations accordingly and buy than he afford
carry his assessments He will be fear of being as
sessed beyond reasonable limit.
The for the provision that majority Of the treasury
stock buyers force the directors to levy assessment that
otenmes people Of will organize with the
intention Of doing their development work entirely by the sale of
treasury stock The time when they cannot sell stock and
the property must lie idle Those who have already bought stock
have dead investment at least for the time being They would
like pay and the work proceed but they
unable do that because the Of control cannot
will not levy and their assessments This provision vii!
such and will compel the payment OF the
by the promoters sale Of their stock who will
do so.
necessary provision that requiring full quarterly
statements affairs Of the company and its financial ond
ton When the officers know that they must lay complete state
of their and dongs before their stockholders there is
much less likelihood of extravaganza the misrepresentation of
funds The requirement that be furnished the stockhod
es may first thought be trivial and unnecessary but
when that authentic map practically vsuazes the
property the stockholders and gives them clear idea of the
sze character and location of the property than words could
and that such only be based definite information
nnor
large number of mining companies in this state that have
changed the assesabe plan after bitter experience with their
noassessabe stocks and large number OF others who would like
make the change will bear eloquent testimony that the state Of
Washington law along the foregoing lines for the full de-