[No. G.:::::::::.*:::LEGiSLATuaii of NokttJ CAHOtWA.:::i:^::;li;l85l.] 
 
 ON 
 
 INCORPORATING 
 
 THE 
 
 RALEIGH: 
 Printers to the State, 
 
 1831. 
 
REPORT. 
 
 The committee to whom was referred "a bill to incorporate the Meckleiw 
 burg Gold Mining Company," having had the same under consideration, 
 respectfully report, 
 
 That, in the very threshold of their investigation, they have been forcibly 
 impressed with the growing importance of the mining interest in North Ca- 
 rolina. Within a few years past, it has attracted much of public attention, 
 anjj with those who have bestowed some reflection on the subject, it has 
 been the source of a lively hope that the developement of her mineral trea- 
 sures will contribute, in no ordinary degree, to improve the hitherto de-. 
 pressed condition of our State. Already have the mines afforded much 
 public good, as well as private prosperity. They have been largely instru- 
 mental in the restoration of a sound monied circulation, so. desirable to eve-, 
 ry portion of the community. By their assistance, our banking institutions 
 have, at all times since their successful operation, been enabled to procure 
 funds and a redeeming capital, which had the ability to sustain their cur-: 
 rency. A large addition has been made to the active capital of the State, 
 both in the way of investment and in the amount actually rendered by the 
 mines. This benefit has been felt by all. But the mining district of the 
 State has, in a peculiar manner, been indebted to their discovery and ope- 
 ration for much prosperity, and her extrication from difficulties and embar- 
 rassments, which were sorely felt in common, at one period, by every sec- 
 tion of the State, and which w r ere ruinous and inevitable. Every branch 
 and exertion of industry have received their rewards. The productions of 
 agriculture and the various improvements of art have met with a liberal en- 
 couragement; the value of real property enhanced; the disposition to emi- 
 grate checked; bankrupt individuals restored to competence and fortune; 
 agriculture and the mechanic arts improved; high prices for labor and con- 
 stant employment; a home market furnished; enterprize stimulated; few 
 debts; an increased attention to the comforts of domestic life; education 
 diffused; liberality of public sentiment; improvement in the habits of so- 
 ciety; population increased; and new fields opened to adventurers for for- 
 tune and fame: These are some of the benefits that, under the influence 
 of the mines, have diffused themselves among every class of the communi- 
 ty, like blood through the animated system. 
 
 But there is another view in which the mining interest may be regarded 
 with anxious concern, and which ought, in the estimation of your commit- 
 tee, to be the foundation of a liberal policy extended to mining enterprize 
 in the State. Various causes have combined, for several years, to render 
 labor applied to the ordinary staples of the South of less value than before. 
 These causes, it is feared, will continue to operate with additional force. 
 With the increase of population, and the probable diminution in the value 
 of slave property, the application of labor in the same channel will necessa- 
 rily diminish the price of Southern staples. All surplus labor on any one 
 branch must be diverted. In this state of things, and under disadvantages 
 peculiar to a people who are without a large foreign commerce — without 
 roads and canals — without a cash home market — without manufactures, and 
 deprived of many other sources of national aggrandisement, the discovery 
 
3 
 
 ami developement of the mines will open a new, extensive and fertile field 
 for individual and public enterprise, for the happiness and prosperity of our 
 State. 
 
 From these facts and reasons, and from every other consideration that 
 your committee have been enabled to bestow on the subject, they are con- 
 vinced that it would be good policy to cherish, with a prompt and liberal 
 encouragement, the mining operations of the State. This can only be ef- 
 fected by inducing an investment of sufficient capital, either domestic or 
 foreign, or both, for that purpose. For however substantial the benefits 
 may have been which have hitherto been derived from this source, yet it 
 cannot be denied that previous expenditure in mining has been chiefly by 
 way of experiment; and that the present condition of the operations urges 
 the' adoption of some new system* by which the mines may be wrought 
 under more favorable auspices. 
 
 Your committee presume it will not be questioned that mining prosecu- 
 tions will rarely, if ever, be attempted by individuals singty, and without 
 aid from associates in the undertaking. It has never been done to any pro- 
 fitable extent in this country; and in richer and older countries, where 
 wealth is often overgrown, and is not distributed with so equal a hand as 
 here, all experience has demonstrated that private and unassisted opulence, 
 however immense, has never been devoted to the exploration of the mines, 
 and would be wholly inadequate to the object. 
 
 This remark applies, with additional reason, to all "vein mines," which 
 must be sought for, if successfully, to great depth and at great expense; 
 and which 1 ", while they are always the most permanent and profitable, are 
 at the same time the most expensive. This is the class now seeking Legis- 
 lative assistance. 
 
 The insufficiency of individual capital is owing, also, to the very uncer- 
 tain and hazardous character of all mining cnterprize — a character which 
 has ever been proverbial. Some untoward event may disappoint the best 
 grounded hope, and frustrate the wisest calculations. This has already 
 been experienced in North Carolina and in every mining country, and is 
 more especially the case when some progress is made; when water is reach- 
 ed; when fortifications and other defences are indispensable;' and when, 
 without consummate skill, every day subjects the proprietors to accidents 
 which may annihilate the most sanguine anticipations. 
 
 Your committee, then, are justified in affirming that an association of 
 individuals, in some way or other, is absolutely requisite for the security 
 of capital invested for mining purposes; and that every prudent man would 
 I embark in such perilous and costly undertakings only such sum as he could 
 [sacrifice without placing his whole fortune in jeopardy. Of such associa- 
 tions, there are but two kinds, either corporate or copartnership associations. 
 To the latter, the reasons which are to bo found in the hazard and immense 
 expenditure of mining offer an insurmountable barrier; and the objections; 
 are magnified when connected with the legal liabilities of a partnership* 
 The profits, too, in a copartnership, are not at all proportioned to the risk 
 run. No matter in what degree a person may be interested in such a con- 
 cern, if it be but for one cent, or to thousands of dollars, he is responsi- 
 ble for all the contracts, and subject to all the misfortunes of the company, 
 however numerous, or however various their interests. A variety of casu- 
 alties may expose the richest partner to poverty and utter ruia. No one 
 
trill adventure in an enterprlzc so expensive and uncertain, and where he 
 may be liable to the mismanagement and indiscretion of a distant superin- 
 tendent, and where he risks net only the amount originally invested, but 
 his whole estate. In a partnership, also, the death, or any legal disability 
 of any party, however numerous the association, dissolves the concern; 
 and a transfer of his interest will not free him of- his liability. There is 
 scarcely a possibility of- its duration for any length of time; and new and 
 intricate rights and duties are constantly springing up. Your committee, 
 therefore, are satisfied that partnership associations do not afford facilities 
 and inducements to capitalists to incline them to invest in any degree pro- 
 portioned to the richness of our mines, or to the importance of the policy 
 which it is so vitally our interest to promote. 
 
 The objections adverted to, do not hold in relation to corporate bodies. 
 The stockholder is liable only to the amount of his subscription, and may 
 transfer his interest without endangering his private fortune. The existence 
 of the corporation, too, is not subject to chance. So essential is some prin- 
 ciple of this kind, that in all extensive mining countries, adventurers arc 
 secured in these privileges by the general law. 
 
 There is at this time in the U. States a vast amount of surplus capital, 
 winch will be much increased by the extinction of the national debt, that would 
 be directed to mining; and by being spent among us, w r ould necessarily ad- 
 vance the general prosperity. Your committee, therefore, recommend the 
 policy of incorporation for mining objects, under such restrictions and re- 
 gulations as the Legislature, in its wisdom, may think fit to impose, and 
 not incompatible with the proper and essential rights of the corporators. 
 For it becomes the duty of the pow er granting the concession, to secure 
 the object contemplated without injuring the community. Mining in North. 
 Carolina is yet in its infancy; and* even in its infancy, the large amount of 
 capital already expended has given an impulse clearly perceptible in the ad- 
 vancement of her interests* Policy dictates the continuance of this im- 
 pulse. It has been said, with much propriety, that " the precious metals 
 can never glut the market, nor mining for them be overdone." There can 
 be no monopoly. Every establishment is useful to its neighbor; and every 
 introduction and investment of capital, w hether successful or not, constitute 
 an important addition to the common stock. 
 
 Your committee are deterred, by the length of their report, from the 
 prosecution of an inquiry which might be usefully extended. 
 
 In the bill immediately under their consideration, they are satisfied that 
 the rights of the corporators and the interests of the community are equal- 
 ly indemnified; and, with some slight amendment, which will be offered, 
 they recommend its passage into a law, and believe that its rejection would 
 prove injurious to the best interests of North Carolina. 
 All which 3* rpspectfullv sabnutted. 
 
 I). M. P.ARRINGER, Chmn.