Sacramento daily record-union. [volume] (Sacramento [Calif.]) 1875-1891, 1880-03-17


Mansfield in the Chair.
Roll called and a quorum present.
MI. GoBMAN resumed his speech on the mining
bill de held that the proitsmade on the farms were
sunk In the mining assessments. The mining stock
business detriment to the State. This bill
not 10 Inlure the miners, but to regulate the kid
glove stock brokers. Stock gambling ought to be
prohibited as well as other gambling. Other
gambling affected only the individuals, while stock
gambling affected the whole people. He hoped the
friends OI good government would stand by the bill
as IL came from the Assembly.
Alr. DAVIS said that he did not see why men who
engaged IN bnYing and selling stocks should be held
to be gamblers any than any man who io-
vested ms money in any other business. He be-
eved that evils existed in connection with the sale
OF mining stocks, but the trouble was in an undue
desire among the people to speculate not only in
stocks, but in every other direction.
Mr.. RowRLL held that the Constitution required
the Legislature TO pass laws to prohibit the buying
oil stocks on margin He opposed the dments.
Stock operations, as they had been conducted, were
not Legitimate business transactions, and ought 10
be discouraged. The bill, ii properly amended,
would have good effect and tend to turn money
into It's proper channels. He would, at the proper
time, move to amend the section SO as TO inser
:. and upon the payment OF agreed commissions and
interest deliver up the stock purchased for him.
Mr.. DICKINSON held that the Constitution did not
require at tie hands OF the Legislature any law 70
prohibit the buying and selling OF and dealing in
stocks, but did require that the dealing in stocks
should be regulated. He held that the basis of the
present prosperity oil the State was owing to the
mines. Agriculture was rapidly coming to the
front, and when it was q solid basis the agitation
would be ended. There was not capital enough in
the state To conduct the business of the State with
out credit. 1t impossible to reduce everything
TO cash isis when the statistics show thai there
only 600 Of capital left in the State about
Sc, 900, 600 having left since The Ist OF January.
Mr.. NEUAANS said the new Constitution had made
what he considered wholesome provision allowing
the Legislature to regulate the sale of stocks. H
urae with Kaua opnnSeh IN this anfi
He thought it very crude. He did not think any
Legislature in any civilized country would punish
what everybody must consider venal oifense, as
felony. by Imprisonment. It has been well said by
both the friends and opponents of the bill that the
entire force Uf it lies in the fourth section. He
thought that the bill, cOlling in this unfinished,
crude state came here not to be passed. but to be
amended and put IN proper form. He thought the
bill aimed, not at Mr. Flood any one man who
had made money in the business, but aimed TO de-
sroy business which had done much good and re
thought little evil. He thought the gentleman who
introduced it not aware OF its effects The
spirit of speculation is not wrong in itself, it is
cropping out OF surplus money seeking investment.
Ii was like steam power an excellent thing when
controlled, hus uncontrolled it spread destruction.
Mining stocks not the only object of specula-
ton. Mr.. Eeene was said to have bought up wheat
for speculation, and his action had perhaps had
any apparent effect on the people at large,
but others following his example it
had disastrous effect on the market. He was
whom he associated with, and who were his per-
sona friends were engaged in this business, and he
should be sorry on their account TO see this bill
pass. There are countries beyond California-the
great State of Nevada, the Territories of Arizona
and Utah are tributary to US, and their prominent
industry is that OF mining. In 1862 the United
States took its supply OF copper from South Amer
lea From the some other tuse this copper
became an object of speculation. People,
they found there was money in it, invested largely
in developing mines He would ask the members
OF the Workingmens party if that speculation had
been injurious to the working population. He in
stanced the development OF boraX mines in Nevada.
People speculated, and those who did not know how
to work and reduce it lost money. Did that specu-
lation injure poor men, There had been speeula-
ton in wheat in this State iron and coal oil in Penn
sylvania. Speculation in this State had given it an
impulse, and made it grow. Some men engaged in
speculation for personal gain but there others
who engaged in it with the humane purpose Of bene-
fitting their fellow men. When you compare stock
speculation with gambling, it was like ali gambling
and he deied any Senator to look into his breast
and deny that the sin of gambling in losing at
the game. Those who have lost have done so for
want OF proper judgment, and not being able to
master most intricate business. The money which
is gained in mines, when it exceeds their needs,
seeks other outlets, and is used in agriculture and
oeher improvements. He instanced General Will
Jams. The object OF this bill was TO prevent the in
fatuated gambler from running himself. We had al
ready bill our statute books by which, when q
man becomes incapable of managing his own estate,
well neaL ing relatives anu dSintereSted friends,
by process of law were enabled to restrain him from
dissipatng it. Blu. are we TO go so far to make
ourselves legislators the guardians OF the Estates
and persons of the people? There is a remedy fer
this evil which IS complained Of. If will enact
this bill as it is sent here from the Assembly then
stocks will fall to nothing, and the $40 600 600
used in mining viii be sent elsewhere, where Legis-
latures viii not interfere with it, There are many
villages where ali the industries depend the stall
wart miner He had almost come to the belief, af-
ter hearing the reasons advanced and the assertions
made OF the Outrages committed by the brokers in
forcing their "points" upon the people for their
ruin that they were no better than set Of high
wayInen (a.ways with the exception OF h friend
from san Francisco He had bought stocks, and
had losS money at it, but he could not
blame the brokers, and could only think it was be-
cause he was fool, and they all knew what draw
back that was to a man Whatever fraud had been
committed had been done by men who had located
wildcat Mines and got them placed upon the Stock
Board, which could not refuse them without actual
knowledge that such was their character The in
stances have been numerous where such men
spread reports in order to make money ard
when thev could not effect their Object they
levied fraudulent assessments, and wenr so far as
to steal the candleends and SCRAP iron of the COM
pany. Let the trustee who does not act in good
faith be treated thief, and punished for felony
hut do not to this Legislature and ask us to
punish men who have nothing to do with it. He
would vote for the amendments as proposed by the
committee. Any law that presented to him
having for its view the taking fraudulent adyan-
| tage OF anybody, could never have his vote. lie
asked Senator Moreland, as Il LAWYER to reconcile
the language of the bill with the provision OF the
Constitution. He CO I'D not at this late hour find
force enough to express the stupidity the asinnty
OF the Gorey BILL The true intent of the bill was
compel the broker who advanced money to hold the
stock inviolate through all fluctuations for an un-
| limited time, and then TO deliver it on demand. In
looking at certain part OF the bill, he thought it
| was drawn by dstectve, as he found prov sion
that half the penalty Of conviction should 90 to the
| inf,r He ash he 70, oh
carefully all these things before casting their votes
| Mr.. WEST again spoke against the amendment
aud egainst the present manner of conducting stock
spec1lations
Mir. SArrERwHrrE said that if the pending amend
ments were voted down he would move to amend by
| inserting so that brokers could not sell stocks
except in the manner provided by the Civil Code
| for selling pledged property" He did not deem
even that amendment necessary, but would offer it
| to meet the objections raised.
| Mr.. HITTEIL said that the bill was simply meas
ure to-" cInch some stockholders in San Francisco
He eld that the dealing in stocks was legitimate
| business AS this Act drawn it would accom-
plsh good. II it intended to pass the bill at
all he wanted the amendments of the Committee on
| Corporations adopted.
| Mr.. ENos again spoke against the amendment He
thought it well to vote down the amendments and
then he would propose one that would cover tho OBJ.
ctions raised. In answer to Mr. Sears he said that
| he would favor Senate Bill No. 450 introduced by
| him tEnoJ), but he also favored this bill and he
| hoped it would pass with a small amendment.
| Mr.. KANE spoke again against the bill and all the
| amendments. He did not want to interfere with
| the mining interests nor with dealing in stocks
Mr.. NEUAANN again spoke briefly against the bill
II Senate Bill No. 450 up he would vote for it.
as he believed it to be well drawn and much bet
| ter bill than Asse nbly Bill No. rs.
The amendment offered by Mr.. Conger was lost
The amendment of the Committee was adopted by
| a vote of 10 ayes to IL noes.
| Mr.. JOHNSON moved that the Committee of the
Whole rise and recommend to the Senate that the
bill be indefinitely postponed.
The motion prevailed.
Mr.. JOHNSON moved that the bill be postponed un-
til April 18th.
Lost by vote of ayes to 30 noes
The Senate concurred in the amendments of the
Whole to Sections l and g.
On the amendment of the Committee of the Whole
to Section the ayes and noes were demanded, and
the amendment was adopted by the following vote /:
Ayes-Baker, Brown, Cheney, Davis Dickinson
George, Harlan, Hittell, Hudson, johnson John.
ston, kane, Lampson Neumann, Nye, Pardee Sears
Traylor, Watson, Wendell, Zuck-21
Noes-Anderson. Burt, CarIocl. Chase, Couger.
Enos, Glascock, German, Hill, Kelly, Iangford
Mareiand, Nelson, Pool, Rowe, Ryan, Satterwhite,
West-1S.
Mr. SATTgRwHrTE moved that the bill he indefn
| iteiy postponed.
The motion prevailed by viva voce vote.
On motion Of Mr.. DICKINSON at 5:l5 the Senate
adjourned.
ASSEMBLY.
SACRAMENTO, March 16, 1880
ment, Speaker Cowdery in the chair.
Roll called and n or1ort,r, r-asa,.