White Pine news weekly mining review. [volume] (East Ely, Nev.) 1910-1920, 1910-12-04
PROTECT THE
STOCKH0LDER
THEY SHOULD BE KEPT INFORM
ED OF THE AFFAIRS OF THE
COMPANY IN MUCH THEY ARE
INTERESTED.

Laws have beer enacted in some
states which have, in a measure, been
effective in protecting stockholders
from willy promoters and neglectful
company officers, says the Denver
| Mining Record. For the most part,
these laws consist of little more than
clauses providing that company Of
fcials shall, at stated intervals, rem
der statements to stockholders con-
corning the financial and other con-
ditions of the company. While TINS
is most commendable and has I'M
d%oubtedly afforded stockholders con-
siderable relief, it is by no means
sufficient.
The law usually permits a year TO
intervene between statements, when
is a period of such length that var
ious things may happen TO a mining
company and a mine. AS in any pro-
position which he has placed money,
the investor desires to know at all
times the exact circumstances under
which his money is being applied. lie
wants to know whether or not results
of a beneficial or other nature are
Undertaking., and he has the right
to know.
Many officials do not appreciate
the keen interest a stakeholder may
entertain; his rights are often ignor-
ed and but for compulsory enact
ments there are many companies
from which official information
would emenate. Lax officials, secure
in the knowledge that they are lot
under obligations technically to ac-
count at all times to their stock
holders, take advantage of their po-
sition and preserve e~xasperating
silence; they conveniently forget
their moral obligations.
Prompted to seek information
from other sources thar the heads of
companies, stockholders have made
frantic appeals for the knowledge
they should have. Obtained from
such sources, the information lacks
the official stamp and is oftentimes
vague and uncertain, but ii is the
best he can obtain. Surely there
should be established some means of
redress in such instances.
When a property has been the sub
jeet of mismanagement and funds
have been misappropriated. causing
the company to become involved in
debt and other troubles. there are
times when stockholders would
doubtless come to the rescue. willing
to advance further capital that they
might protect their interests and re-
tain some chance of securing benefits
If they were appraised of conditions.
Many good properties have been lost
to those who have put up money for
development, simply because 1t was
sold to satisfy liens without their
knowledge.
Oficials dislike to report failure
or render unsatisfactory statements,
though it is their duty to do so. and
their silence has been the cause of
huge loss in the mining world.
While there is much agitation con-
corning revision of mining laws with
a view to securing greater benefits
for prospector and mine operators,
let us. by all means, also undertake
the consideration of statues that will
give more protection to the stock
holder who, often far removed from
the enterprise into which his good
money has gone. has no means of
keeping in touch with the facts as
they are.
There are many people interested
in mining who know very little about
the game. They are anxious to reap
benefits and have undertaken to do
so with the sincerest intent. They
place their confidence in Others and
that is about all they can do.
Stockholders should be thoroughly
informed of the affairs of a mining
company in which they are interested
at all times. regardless of the nature
of the Observation-Disclosures pleas
ing or disappointing.