Weekly journal-miner., 1917-01-31
To Editor Journal-Miner,
 Prescott, Arizona.

Dear Sir: l have noticed that dur ing the present session of the Arizona State legislature several bills have
 been, or are about to be, introduced whose objects contemplate either a curtailmcnt or an enlargement Of the powers of the Arizona State corpora
 ton commission.
 Inasmuch as the bulk of the busi- ness, at the present time, coming be- fore the commission is concerned with the incorporation of new mining companies 1t would seem that a thor ough analysis of the present scope and
 powers of the commission and the proposed amendments thereto should
 be initiated and fostcrcd by the min ing fraternity of the State who arc
 interested i'll the legitimate develop mcnt of its wonderful mineral re-
 sources.
 All mining engineers know that the most difficult problems of the industry
 today are not technical, but arc il-
 nancial problems; and the present would seem an appropriate time for a candid discussion of the effects and ! defects of commission control Of mining finance.
 The elements involved in safe and sane legislative program dealing with this subject arc psychological rather than scientific, i. c. they have more to do with human frailitics than with the [ fundamental merits or demcrits Of mining as business or profession. Long experience should have taught us all that no one engineer or associ- ation of engineers is either infallible
 or fitting court of last resort when it comes to passing judgment upon any prospective mining venture: but
 the bonafide and experienced mining engineer and mining operator is well qualified to pass upon the financial
 requirements of either mine spccu
 lation or a mine investment.
 Recent history, not only at Jerome, but elsewhere, warns Us that there IS rarely hard and fast line that may authoritatively be drawn between a mining venture that may make good and one that may not make good, the
 only disccrniblc difference between the two laying in the fact that one venture has more rock 10 break - more dead work" to accomplish - than the other venture before finding the large orc body or the worthless ''stringer," as the case may prove to [ be. The geological veil can be lifted by anyone possessed of nerve and money. It can be lifted more eco- nomically and quickly by trained cx- pcrts but the reward or the diSap- pointmcnt awaiting such efforts in the end is the same.
 ! However, hard and fast line can be drawn between classes of mining ventures: and this line can be au- { thoritativcly drawn by experienced men. This differentiation is non | technical and is solely concerned with a proper presentation of facts and an exercising of sound judgment in deal ing with the financial requirements of a prospective enterprise, and wise supervision Of the legitimacy of its expenditures of treasury cash and shares. In other words, an eXpcri- cnccd and competent mining engineer or skilled operator can probably save | his clients from a vast percentage of failures by his judgment in. making recommendations but it is neither fair nor safe to characterize as wild cats" such prospective propositions as arc { not recommended by such authority. These disrcputablc ones might make good-rarcly they do make good in spite of the handicap of professional disapproval Thus there is no com- pletely disccrniblc line of dcmarcation between the wild cat and the re- spcctablc member Of society that has found a profitable orc body.
 This being the case it would appear that no sound legislation is possible that undertakes to distinguish tech nically between the various poSSibili- !. ties of such aggrcgations of embryo ]. mining syndicatcs as apply for the | official seal But 1t IS possible for the l State corporation commission to deal | effectively with such enterprises in ' their financial relations with the pub i lie by exercising careful supervision | of the circularizing and newspaper , advertising campaign of the mining l promoter. This desirable supervision | can be accomplished by an insistencc | upon some set of regulations, such as . the following, to be used in all appli- 1 cations for mining interpretations: :
 First. Names addresses and occu- i pationS of all directors.
 Second. Name of manager control ! ing expenditures and directing opera tions.
 Third. Proposed capitalization and par value of shares
 Fourth. Description of mining property it is proposed to capitalize this description to bc entered on rcgu- lation forms supplied by the com mission.
 Fifth. Title of property and how acquired by present owners and how it Is proposed io transfer same to new company; together with statement concerning amount and distribution of promoters and owners of stock.
 Sixth. Amount of money needed Gf any) for further development of properly and statement as 10 how it Is proposed to raise this money and how il is to be expended: together; with d statement of indebtedness of