Show II i PAlOMA MINE MIME AFFAIRS REVIEWED BY M P I I BRAFfET i Statement ot of M. M P. P Braffet in rel relation on onto to Paloma affairs The directorate of ot the Paloma Paloma Gold and Silver Siver Mining company consists of but hut three members Judge Judge Thomas Marioneaux being president Charles W. W Olson vice president and until February Febuary Feb Feb- Feb Feb- uary uary 8 A. A P P. Mayberry Mayberry was the other director On that date I succeeded Mr lr Mayberry and Immediately called caled for an audit of the company's nys ny's books for the purpose of checking I made by the the e ea a accuracy secretary r y of fL Lorin representations rep W I Hall Hal as to the amount of st ck in the th company's treasury treasury- and other important facts affecting the status status' of ot the company's company's com corn pany's finances Mr Hall Hal had repeatedly represented to me that the tho treasury contained con con- contained con con- tamed upwards of shares of stock which would of course be b an asset sufficient suf suf- sufI I to guarantee the development of the property without necessitating the levying of an assessment With the I hearty concurrence of the other directors to my suggestion for tor an immediate audit audi James Jame P. P Walt Wait an expert acc accOuntant was Immediately set at work in conI conjunction con- con I junction with wih Rlph Ralph D. D Pomeroy who who on Thursday was appointed to succeed Lorin Hall Hal as secretary and treasurer and they have since that time been workIng working working work work- ing night and day in a thorough examination examination examina examina- tion ton of ot the corporate books and accounts Many Irregularities have been discovered and the practical depletion of the treasury stock was revealed as an initial fact There is cash In hi the treasury amounting to but this sum is entirely Inadequate inadequate made made- quate for the installation of equipment necessary to properly develop the mine An assessment was therefore deemed necessary In order to carry carryon on the development development development devel devel- work and waa wa accordingly levied at the meeting of was the directors held yesterday C. C J. J Graft Graff Graf a thor thoroughly competent miner of extensive experience has been put in charge of the property as super super- luper- luper an efficient and bonded secretary sec see 7 and treasurer has hs been appointed and 1 I feel safe in assuring the stockholders era ers that an economical and businesslike administration of the company's affairs will be the future rule The property has been Inspected Inspect d and sampled many times and r by different persons person's durl during g the past sixty days and all al concur In Inthe Inthe inthe the belief belef that Paloma is one of the coming mines of the Star district and nd the theore theore theore ore in the property Is such as to warrant much higher prices than the stock has heretofore for attained I am personally confident that tha stockholders who may elect to dispose of f their stock because of of the unpleasant information acquired by means of th the audit and the res resulting necessity of an art assessment will regret such act action n within three thre months from this this' time The affairs of of the company appear to have been at handled almost e ex exclusively ex- ex elusively by Y the former secretary Mr Hall hail Hal in whom the directors appear to have reposed full fun confidence This is but too frequently the case cae In iii the handling of mining companies while in their prospect stage It I is of course shocking to a stockholder to discover a depleted treasury after being bing led by a corporate officer to believe that practically 20 beleve per percent percent percent cent of its capitalization remains unis unis- sued Much luch of the stock so issued appears appears appears ap ap- ap- ap pears to have been parted with without any authorization of ot the board of directors tors tors an and a a considerable rable block appears to have been Isse issued without any adequate consideration going OI into the company's f treasury tS Such matters i will twill li be considered considered consid consid- r ered by the board of t when the audit is completed an and an adjustment for the protection of the stockholders will be insisted upon wl With the active management of the property in the hands of Mr Graft Graff Graf be the funds lunds derived from the coming assessment assess assess- ment together with wih the funds on hand the future outlook of Paloma is exceedIngly exceedingly exceed exceed- bright and merits meris the fullest confidence confidence con con- of the investing public |