White Pine news weekly mining review. [volume] (East Ely, Nev.) 1910-1920, 1911-02-26
WOULD AMEND
PRESENT LAW
MEMBER FROM STOREY COUNTY
WILL ENCOURAGE THE LEGITI-
MATE MINING OPERATOR.

Assemblyman Drysdale has q
measure before the lower house &c
change the present law entitled: All
act requiring certain mining corpora
tions to file statements with the
county recorders and attorney gen
eral, and to mail copies thereof to
stockholders; regulating the issuanee
and sale of certain treasury and pro-
motion stock and defining the same
for the purpose of this act: declaring
certain acts to be unlawful; proyid-
ing penalties for the violation there
of, and other matters relating there
to-" approved March 5, 1903.
The changes proposed to be made
in the foregoing act are substantially
as follows:
/. Requiring mining corpora
tions that are selling stock to report
twice during the first year of their
existence and once each year there
after.
1t is considered that annual re-
ports are sufficient for the company
that has been in existence for eigh-
teen months or more. The danger in
validating is that the wildcat pro-
motors may come into the state, or
ganize a company. sell its stock and
get out in less than a year. Conse-
quently 1t is herein suggested that
each company selling stock be re-
quired to report six months after its
Incorporation as we'll as make the
annual reports as herein suggested.
. T. - U,,vOArf.I fhof cphdfrfef-
ons fc) and I'D be changed so that
where several claims are grouped for
the development and improvements
for the entire group instead of segre-
eating 1t into claims. The United
States and the state laws relative to
the doing of assessment work permit
such work to be done in this n
and it is found to be of great assis-
lance to legitimate companies that
are developing their properties. 1t
Is further suggested that subdivision
I'D be changed so that instead of
reporting the number of days labor
employed in developing the mining
property, the company will be requir-
ed to report the amount and give a
description of the development work
actually done. 1t is considered that
this will prevent the padding of pay
rolls by INSCRIPTIONS promoters and
at the same time will give the stock
holder the Information desired. 1t is
also much more satisfactory to the
legitimate operator because he can
easily measure up his work and re-
port it.
3. 1t is suggested that subdivis-
fon Cd be changed so that the stock
holder may be informed of the pro-
duction of the properties rather than
the amount of bullion tax paid. An
INSCRIPTIONS promoter could afford
to pay a thousand dollars bullion tax,
report it according to the present
law, and sell stock on the strength of
such report, although his property
might have produced nothing.
4. 1t is is further suggested that
section five of the act in question be
amended to broaden the definition of
the term treasury stock" 1t is on
sidered that treasury stock should be
issued by the corporation for the
purpose for which the corporation
would otherwise be required to pay
money. In the early stages of the
corporation Is often without funds
and may need the services of a sur
veyor or an attorney, or of any other