Morning appeal. [volume] (Carson City, Nev.) 1877-1906, 1880-01-10
TIE CALIFORNIA STOCK GAMBLING
BILL

bill was introduced by GJrley in the As
ssnbly yesterday, TO regulate the sale of min
ing and other stocks. Ii provides that the
purchase and sale of shares of any incorpora-
ted company in any stock board, mining e1.
change or auction mart is prohibited, except
in the manner prescribed. A violation of the
law is declared felony, punishment for which
is fixed at fine of not less than $1,000 nor
more than $40 900, and imprisonment in the
State Prison not less than six nor more than
twelve months. Shan or wash sales are pro-
hibitsd 1t is made incumbent on all stock
brokers' to furnish customers within forty
eight hours after mskings such sale or purchase
written or printed lists Of the stock shares
sold or purchased, specifying the session of
stock board at which such sale or purchase
was made. stating the true price and also the
number Of the certificates Of the stock sold or
purchased Brokers are forbidden using, loan
iny, hypethscating or selling any stocks IN
aud belonging in whole or in part to a cas-
TONER Stocks must be delivered to custom
ere on demand, and after payment OF arresr-
aye. thereupon. The Secretary or Clerk of
every stock board is required TO keep list of
all stock transactions, showing names of seller
purchaser and number Of shares and price,
which record shall be kept open to public in
spection. Upon the demand of customers the
Secretary or Clerk is required to farnishswern
statements An infraction of said provision
incurs a fine Of not less than 500 nor more
than $1,000. The idea Sf regulating the tran
saetions OF brokers is an excellent one, but
the ArPHAL would like to have Mr.. Gorley
explain how he proposes to prohibit - wash or
shan sales" 1t is simply impossible, Ii
wishes to make wash sale OF 0phlr and bear
the stock, he simply gives an order to b to
bid, say $l6 share, for it, when the ruling
price is SlS. He then deposits ten shares with
G and orders him to sell at SIC bid. offers
SIC, following instructions, and c also follow
ing instructions sells at these sgures, and A
has simply purchased his own stock through
two brokers acting, az far as they know, indie
penden,ly of each other In bulling stocks.
similar tactics are carried out, and no law can
ever prevent it, The clause forhidding brok-
ers to use their customers stock is good
one, for combinations are made between brok-
ers who simultaneously throw their customers
stock ON the market and by this means inau-
gurate panic through which outside parchss-
srs are ruined with their own money. The
stock thus sold is repurehased at bottom prices
ha Is
on calling for it and settling his account.
This is aspecies Of double dealing which should
be crushed out At the same time the outside
buyers could easily remedy the evil by paying
brokers' hands; or if securities are purchased
On margins, the buyers by recording the nua-
bers Of their certificates, could see that tho !
stock when delivered was the same as when
AS rule the class OF people who |
speculate in small way will not take the |
lroubls to do this, preferring instead to have
A legislature protect them. While the rotten |
institutions on Pine street need legislative |
cleansing, it is not probable that any reform |
will be inaugurated by that means The Stock
Board is composed of smarter men than the
and the former will outwit the
after at every point. Ia order to reform
buses in the mining and stock business, the
ountain head of the system must oe cleansed.
What the PEG t,le want are laws enabling stock
,olders in mines to have voice in the man
cement of the property, and be allowed &C
ess to it at all times.