The Wallace miner. [volume] (Wallace, Idaho) 1907-current, 1915-02-18

also appears from the records that 5Ou
shares of treasury stock have been Is.
sued as a bonus for arranging per
minute book of the company it further
appears that in part payment of as
sessment No. 4. Mr.. Bernier was au-
thorized to issue his note to the com,
pany for $154266, payable in one year
from October Z, 1914, with interest a.
4 per cent per annum.
This does not represent all of the
obligations assumed by the company
as an audit of the books will disclos,
the fact that in the neighborhood o
$1,000 has been paid by the company
for services which should have beer
paid by the holder of the option on the
stock. Since August, 1910, over $90G
has been expended for printing, stamps
and stationery. Part of this amount
of course, covers advertisement Of as
sessments and other legitimate claims
for which l make allowance in my es-
such cash payments at least $500
shares of treasury stock have beer
issued as bonuses for services in pro-
noting the sale of stock during the
time the treasury stock was under OPP
tion to Mr.. Bernier.
During all this time, July 9. 1910
to February l, 1915, the cash received
from sale of stock amounted to $3265
covering 1895 shares. This does 1ot
include q small amount Of stock turn
ed over to men working at the mine III
lieu of cash Wages-the economy 0
which is very doubtful-but represent
actual cash received.
The net result to the company of al
the efforts and negotiations of Mr.
Bernier during this period is that the
company has received in cash $326t
from sale of treasury stock For these
same efforts and for the receipt of this
amount the company has actually paiC
him $3.50; has loaned him $1,000 at !
per cent pr annum while borrowing
money at 10 per cent per annum, be-
side paying 5000 shares of treasury
stock for such sums borrowed; has
issued 500 shares of treasury stock as
bonus for personal loan; has issue
at least $500 shares of stock and
paid in the neighborhood Of $1,000 casl
for services promoting the sale OF the
stock.
In other words. the treasury has
been depleted at least 27S25 shares, and
to accomplish this it has cost the com
pany $34S5 more than it received in
cash for the stock. Would you care to
have every business with which you
are connected run along similar lines,
and do you not think that 41a years is
sufficient time to try out one system?
I 1T is true that the payments and
transactions which | have noted above
have been approved by various boards
of directors, but that in no way
changes the net result or cost to the
stockholders. Since August 6, 1910,
there has been held only one annual
meeting-that of August 2, 1913. Since
August 6, 1910, five directors have re-
signed, and their successors elected by
the remaining directors. 1t is also in
teresting to note that in this time the
company has had four different secre-
taries | desire to state that some Of
the members of the present board of
directors have become members sub
sequent to some of the transactions
which I have called to your attention"
Bernier viii Resist.
1t is needles sto say that Mr. Bernier
will make a determined resistance to
this move to wrest from him the con-
troll of the company. This is not the
first time that he has been up against
fight of this kind. About year and
a half ago there was a combination
formed for the purpose of getting con-
troll of the company, but when the
show down came II was evident that
! he retained the control by a safe ma
Ijority. The Hanley letter came as q
Icomplete surprise to the present man
Iagement, and it remains to be seen
whether Mr.. Bernier is as strongly in
Itrenched as he was when the former
battle was fought for control. The out
come will be watched with much in
terest for the property of the company
is Of great present and prospective
value.
The Mine.
The Black Bear Consolidated mine
.adioins the Frisco on the east and eX'
tends from Canyon creek to the Flynn
group The main development on tht
property is tunnel No. 2, which ha'
{ opened an ore shoot about 100 feet il
length. Two raises have been mad
: on the shoot for distance Of 200 feet
. about 600 feet apart, both of which ar
in ore all the way, and it is reasonapl
4 to believe that this is the same shoe
s that is exposed in tunnel No. l. llo
z feet above No. 2. Parties who haV
recently visited the property expires
surprise at the amount of ore in sign
70 mi are free to predict that the Blac