The silver state. [volume] (Winnemucca, Nev.) 1909-1925, 1916-02-24
TREASURY STOCK BETTER
THAN PROMOTION STOCK

It was during the boom days of Ne
vada, when the camp of Goldfeld was
in the limelight, that the state legisla-
ture of Nevada passed a law compell-
ing mining companies to permanently
stamp stock certificates sold, to indi-
cate to the purchaser whether the stock
was treasury stock or so-called promo
tion stock, says the Mining Record. It
is good law and no doubt the state
officials of Nevada are seeing that 1t
is enforced at the present time. other
states would do well to pass law pat
termed after the Nevada enactment so
as to compel brokerage houses and pro
motion firms to deal more squarely
with the investing public.
Colorado has been free from dis
graceful and extravagant stock promo
tion during the past few years. Some
excellent companies have been financed
and sincere mining operators have had
and are having their inning. But it
would appear that the public is be
coming excited. Stocks are not being
bought with the same degree of eau
tion necessary to distinguish between
the honest mining effort and the un-
scrupulous aotation. A stock is offered
in attractive literature and the buyer,
anxious to grasp opportunity, is not
asking the questions he should in or
der TO get the information he is enti-
tied to. Investors should know wheth-
er their funds are TO be used in the de-
velopment of the property or whether
they are buying some ones private
stock. When YOU buy treasury stock,
directly from the company or its off
cials, YOU can rest assured, under the
present strict laws, that your money
viii go into the Development of the
property. If you buy stock from some
broker who is not interested in the
company, it is ten chances to one that
you are buying someone s private stock
and that your money will not go into
the property but will 90 into the pocket
of some individual. Mine operators Of
the west who are interested in the de-
veopment of new mines should not
lose sight of the fact that when the in
vestor puts his money into a mining
stock he puts it there believing that
his money will be used in the develop
ment of the mining property. And be-
fore the eastern man or the western
man puts his money into a mining
stock he should know that his money
is buying treasury stock of the com
pany and not the so-ealled promotion
stock in the hands of some individual.
1t is generally understood that the
owner of a mining property, when he
turns his property over to company,
receives ofttimes block Of stock IN
consideration. The company officials
should see to it that this promotion
stock is tied up in such manner that
it will not come out in the market in
competition with treasury shares. The
officers of a mining company il they
are sincere, win have sufficient conf
dence in their enterprise to agree to
the placing Of their shares in escrow.
If they viii not agree to this they fail
to show the confidence in the enter
prise that should be there to warrant
outside investors in placing their mo-
ney in the proposition. 1t is mp to the
investor to see that he gets treasury
stock, as it is only through the pur-
chase of this stock that the develop
ment of mining property is made
possible