The Wallace miner. [volume] (Wallace, Idaho) 1907-current, 1910-05-19
IN ANSWER TO QUESTIONS.

Drnc an absence of several DAYS outside the district in the
past week the editor Of The Miner has been asked number OF
questions regarding the advantages OF assesaDe stock non
assessab stocks patented claims and other points pertaining
the fixing of stock values.
For many months the Miner maintained running comment on
these subjects its editorial column and only ceased when
thought its readers had become familiar with the editor views
and Of them heartily tired OF reading what was
oenmes repetition Since then new readers have Deen
added and in view of the questions asked during the past week
little review Of the sbectmay not be out OF place at this
time.
We have always favored assessments giving primary
reasons the copuso all stockholders joining the provision
Of funds for developing the property and the necessary obligation
Of the making complete returns OF the expend
Of funds provided by assessment There no legal require
for such notice to sockolde but there an unwen
which precedent has established to such that the
company failing make such statement finds considerable Diff
cy collecting and the standing Of such company
IS consequently impaired noticeable extent Happily there
many instances be noted because the habit has be-
almost universal With this statement Of expenditures is
always included report from the active officer telling
exactly what work has been accomplished what showing has been
made during progress of this work and the plans and
poets for the future of the company g M a @
The main point have urged in favor Of this plan is the as
given through all sharing the cost Of development BY
MI that will hold too large proportion Of the stock
OF course not be inferred from this that such action Is
always necessary result of worcestershire organizations 1t is
We know of worcestershire companies which have
ben operated with single an eye to the welfare Of gil stock
holders assesabe company could possibly be- But such
action entirely dependent the management without outside
check The tendency strong for the organizers OF such
pan appropriate too large proportion of the capital stock
M their interest the property and then depend on the sale Of
small part Of the capital to develop the ground producing
basis The result only frequently is that inability to sell
sufficient stock keep the pment going forward compe
suspension sometimes with debts accrued and work
the sale of treasury stock becomes almost mpossby
Then the becomes indefinite and the stock deprecae
When any holder becomes pressed for and eneavors to
dispose of his holdings he has accept purely nominal price for
the stock and this forced sale sets the market price of the stock
is unjust to both the holders and the management but until
found for overcoming it the system will remain and
this paper cannot offer suggestion provide against such
forced quotations and the inevitable dissatisfaction which other
holders feel as a result g4yts4sggs aa484
Then the of selling treasury shares considerable It
constant effort with certainty at time Of having
funds in hand complete certain fixed amount Of work. unless
the contract for such work withheld until the is actually
paid in to the Then again the amount of
Qud to property producing basis be known
iii advance consequently the price which must be realized from
the of treasury shares be fixed definitely The fare
which the companies operating successfully
the basis advance the price according
as the work progresses We mention ofhand few
pnes which have continuously operated this basis and give
promise satisfactory distant date These
bow OF there many more but these quickly
On the other hand the results on
eve-y hand They constantly before the public eye
Attenon cenred them because of their adver
the cost Of selling treasury shares The assessing company