Show THE POOLING OF STOCK it is often the case that new mining companies before beginning active business pool their individual or incorporators stock and the idea is a good one as this action clears the way for the sale of treasury stocks and protects the buyer from the inconsiderate action of the shareholder who is also an incorporator it also protects the market and prevents cases of underselling der selling that it so often disastrous to the companies endeavoring to place their treasury shares with the stock buying public many instances can be cited in this western westeen country where mining companies have failed and have been forced into bankruptcy because of their inability to raise money for operating expenses through the sale of treasury stock even though the properties arties involved are considered to be first class and meritorious and for the simple reason that the market is flooded with in corp orators stock at figures below that asked for treasury shares it is a heavy blow to the management in hi his s effort to place the treasury stock of his company to be informed by a prospective buyer that he can go into the open market and buy tle the stock in question at a much lower figure haure than it is offered at by the company with these conditions prevailing there is nothing to do but to close down the mine to discontinue development and mine operation until there is a parity between incorporators and treasury stock or until the stockholders of the company join in a pool and so make an outlet for treasury stock with the protection thus afforded there is some chance for improvement and the stock buying public becoming aware of this protection will more rea readily dily make investments in promising properties that are likely to make mines with intelligent and systematic development an incorporator who is honest in his intentions tent ions and wh who really desires to conserve the best interests of his company and at the same time afford protection to the public will not hesitate when asked to pool his stock |