The Goldfield news and weekly tribune. [volume] (Goldfield, Nev.) 1911-1947, 1916-01-08
zAD|G EXPLAINS
HIS PREFERENCE
1ECLARES ALL MINING COM
PANY STOCKS SHOULD BE
MADE ASSESSABLE

stock broker, wnen asked regarding
the advantages of assessable over
worcestershire mining stocks, gave
the following statement to the FL
nancial News of Los Angeles:
From all appearances it looks as
though We are on the v of a great
revival of speculation in mining
shares; not alone in copper and
lead, but also in gold and silver.
The great demand for all kinds of
metals naturally brings GU the
@prospector in full force and he will
naturally seek men Of means to
help him develop his prospect. The
capitalist, as a rule, after he is SAL
isfied that the prospect offered IS
worth while developing, incorpora-
ties a company so as to enable hin,
later on to sell a portion of the
shares to his friends and others
either direct or through a broker on
the stock exchange.
Now in incorporating a new COM
ANY it has been the custom during
the Goldfield and Tonopah excite
ment to incorporate all companies
on the worcestershire plan for the
reason that the promoter thought
il would be much easier to sell
shares by telling the respective buy
ers that after buying the treasury
shares there would be nj further
obligation on their part to put any
further money into the proposition
for development purposes.
This goes all right if h mon
ey received through such sales of
the treasury stock is sufficient to
make a paying mine out of it, but in
case it required more money to de-
velop and no more treasury shares
in the treasury, then all that was
left was either to increase the cap
ital stock and thus diminish the
stockholders interest, or let the
company run in debt and end in
foreclosure.
This is what happened in Gold
field, Manhattan and other camps
after the rush was over and created
a stoppage of work in a great num-
Der of properties. The first time
looked into the way Goldfield prop
critics had been incorporated, l ax-
pressed myself hat it was a wrong
system to follow and hat it would
be only a matter of time when all
the mines that had no ore would
have to close down. My long eX-
p~erience on the Comstocks where
all companies are Incorporated un-
der the assessable plan has convinc-
me that it is the only way W
fRse money for developing a prop
erty. The Comstocks never coutu
have been developed any other way:
money never could have been raiseu
by a few people through advancing
money to go to a depth of 1900
feet as they had to do in the Con.
Virginia and California before they
found thai body of ore which pro-
duced $175, 100000.
Most people as a rule always
want the other one to put up, es-
pecially if a few of the large stock
holders have plenty OF money, to p,st'
up They will say these large hold
ers won't let the property go by
default; they will put up and then
if it is good we are in, and if II
is bad, we are out. When You have
an assessable stock and an assess
ment has beer levied, then it is Ell
ther to pay or you lose all, or part
of the stock as the case may be.
| went before the American min"
ing congress held at Goldfield IN
1911 and advocated to incorporate
all companies on the aSsessable plan,
| made /. goo,: many converts that
time, the PRINCIPAL one being George
Wingfiel |. He very shortly, after
ward r~eorsanized a Anumber of his
companies on the a~ssessable. plan
and sad 1T tho tLnr that he was do
ing tiis on his friend Zadig's ID
vice.
Now what MS the result? The
starting of worl. in six or seven
al OF which had been
~forecipst / and We're unable to raise
funds % pay Oil their debt and re
sumo Woik uAfi the change was
made to make the stock a~ssessable
All these companies have been
working ever since, and at hat
time really saved the town of Gold
field from going all to pieces. /
did the same at TonOpah. reor-
ganized the North Star, Rescue Eula,
Tonopah Standard NOW Bonanza),
and these companies were dead when
| took hold of them. They have
been working ever since; stock
holders are paying their assess
ments; sometimes people fail to pay.
then enough is sold at auction to
pay the assessment and the balance
belongs to the holder, so that as o
rule he never loses his whole stock
on the first assessment.
Certainly sometimes when the
Stock sells for a little more than
assessment and the stock is
SKID at auction he loses it all and