The Wallace miner. [volume] (Wallace, Idaho) 1907-current, 1914-10-22

sessable" In connection with mining
shares, usually strikes terror to the
novice. But why? Probably on &C
count Of prejudice which has been
handed down from early days, when
the Comstock and other famous min
ing camps were in their booms. LII
those days all stocks were assessable
to an unlimited extent, which privi-
iege was sometimes taken advantage
of by the wealthy and unscrupulous
directors and manipulators as means
Of freezing out" small and less for
tunate stockholders by levying assess
ments for large and unreasonable
amounts. in utter disregard Of the re-
qulrements or financial condition OF
their companies. This practice Is nc
longer permitted. as most of the min
ing states now have laws regulating
all corporations and aifording protec-
ton and fairness to each and every
stockholder.
On the part of the general public II
goes without saying the on-assess-
able type of stocks have been previ-
ously in favor owing probably to the
fact that 1t was presumed an invest
ment once made relieved the investor
of any further liability But there
never was greater fallacy; for III
reality there is no such thing as full
paid and non assessable" stock ex-
cept when the same is sold at PAL
value. AS rule it is only meaning
less catchpenny phrase Under the
common law, stockholders Of all cor
porations are held liable for company
debts to the extent Of the difference
between the par value Of the shares
and the price the shareholders have
actually paid for the same.
California does not recognize the
non accessibility of shares OF any
company operating within its borders
The assessable plan Is also generally
recognized in Utah. Under reasonable
limitations shares Of all mining COM
panies operating in Idaho are assess
able and many of the leading and now
producing mines Of the Occur
d'Alenes, paying handsome dividends
to shareholders, may be cited as ex-
amples of the advantages Of assessable
shares, with the moral drawn that IN
the general run, assessable stocks af-
ford better peculative investments
than those that are n-assessable.
TO coldly logical investor. assessa-
bility should be a recommendation.
Mining has mathematics of it's own,
with many variables and with both Its
risks and it's rewards largely unde-
termined Likewise, mines, unlike
poets, are rather made than born. 1t
Is more frequent than otherwise. new
mining properties are much longer and
more expensive in their development
and final determination Of results. than
originally expected
During the probation Of prospect
or mine, should the company funds
give out before the property became a
paving one, II it's shares are unmar-
ketable and non assessable. the onl.
thing left for the company to do Is IT,
ouit-and thereby add another name
to the long roster Of mining failures
The bonanza may lie an inch beyond
the pick, but there Is no money to pay
the wielder of the pick.
Frequently, the work is kept going
after funds are exhausted and thereby
debts are incurred. The property is
then usually mortgaged to secure the
debt and the mortgage ultimately fore
closed, the property sold at sheriffs
sale, being usually bid in by the cred
itors, who thereby come into complete
title to the property. totally invalidat-
ing all shares of previous issue. In
time of stress, the non assessable
is driven to pooling, or re-
on an assessable basis as q
last resort The latter being impossi-
BILE without the unanimous consent OF
the stockholders, which is rarely pos
sible to obtain.
Another important phase Of the sub
|ect is in that 1t is impossible for any
mining company at the time Of its or
yanization to determine in advance
ust how much money 1t may require
o carry out its plans, and develop anc
equip property. Therefore in the
.ase of a non -assessable company the
took must be Of necessity sold in tn,
'eginning at prices usually out of al
citation to the value of the property
n order to raise money enough. Fur
hermore, the success or failure of
UGH company denends entirely up
n the sale Of treasury stock whether
here may be market or not for It,
nd generally in competition with pro-
loters and private stock, and also In |
he company being fortunate enough |
. have loyal officers who are success.
ii stock sellers. willing to devote their
me and attention without unreason.
BILE compensation, very rare com
nation indeed.
The assessment Of mining stock Is
'ithout question open to abuse. ac-
ording to the honesty and business
apacity Of the officers in charge, but
, also may be the treatment of the
.ockholders In on-assessable COM