Show TOO MANY IN CORPORATIONS the publication of the list of companies failing to comply with the state law requiring the payment of a corporation tax and the virtual dissolution of hundreds of companies because of the observance nonobservance non of this requirement has shown only too plainly that there are scores of incorporations corporations incorporations corporations in whose existence have been more than useless and not only useless but also detrimental to the mining industry for it is often the case in the formation of a mining company that little more is done than the sale of a small amount of treasury stock before the enterprise sinks into oblivion ion never to be heard of again unless through the efforts of a bewildered stockholder to discover why it is that dividends are not forthcoming why it is that re fe ports have not been made as to the condition of the companas comp anys property this perfect deluge of inactive corporations numbering hundreds and even thousands leads to the query why were these companies incorporated the question is a hard one to answer and yet no doubt exists but that many corporations have been perfected through ignorance of real condit ons because of enthusiasm and overconfidence we might add also through inexperience and it is only right to say in this connection that but ten per cent of the many in corporations recorded ever meet with success and these few win out because those in charge fully understand mining conditions and are capable and able to thoroughly develop the holdings of the companies in which they are interested of late years there seems to have been a mania for the organization of mining companies in nine cases out of ten the properties upon which these eions were based were practically valueless while the incorporators were men with no experience whatever in mining D affairs still the company is formed a few meeta meetings s are held stock books are purchased P a company seal is provided the promotion stock is issued a few shares of treasury stock are sold and then the curtain is drawn the company virtually passes out of existence and no one seems to be at all uneasy regarding this short spurt of legal lile excepting the deluded individuals who purchased the treasury stock and their protests seem to have but little effect upon the practically defunct companies the members of which in some cases come to the front in due time with another incorporation which to all intents and purposes is also stillborn still born there is no law nor can there be to regulate the individual combining with wah the individual in the formation of an organized company but the investor should make a law unto himself that not one cent of his money shall ever be expended in the purchase of treasury stock in a newly organized company until careful investigation shall have disclosed the fact that the personnel of such company is composed of individuals experienced in mining affairs that the busness business of the company shall be honestly and ably conducted and that the property of the company is possessed of undeniable merit and value As it is there are too many eions |