Letters to the Editor Speculators “sole support for juniors”

In the more than 40 years that I have read The Northern Miner I have never felt it necessary to respond to some of the letters you have published, but in the issue of Jan 18/88, under the heading Juniors can’t afford red tape for speculators, excerpts from two letters by Jean-Jacques Martel have forced me to take pen in hand.

This misguided fellow objects to having to inform the owners of the company how the affairs are being handled, and what has happened to the money raised. I suppose he prefers that the owners rely on the puffed-up promotional material that is released when it suits the purpose of the management. Perhaps he is rightly afraid of having to reveal how much money is being spent on “administration,” dubious investments and other non- arms-length deals.

The attack on speculation is the equivalent of the dog biting the hand that feeds him. Does Martel believe that investment trusts, mutual funds, etc., buy his near- worthless colored paper?

The suggestion that speculators don’t register their shares so that they can sell them more quickly, is ludicrous. It is a simple matter to sign off registered shares and leave them with your broker for safekeeping and shares can even be sold during the time they are being registered, if necessary.

This would impose even greater cost on the companies and oblige them to comply with the very rules Martel opposes.

I suppose the new rules, in my opinion long overdue, will force the promoters to give up a few of their perks, and inform the suckers about what is going on.

The speculators, far from contributing very little as stated by Martel, are practically the sole support for these junior mining companies. It certainly isn’t the Martels of the world, who support only themselves.

We know who is hiding behind the curtains, Martel, and hopefully the new rules will open the curtains so all can see. L. Joyner Port Coquitlam , B.C