The White Pine news. [volume] (Ely, Nev.) 1906-1910, 1909-06-30
GOES AFTER
NEVADA LAW
COLORADO MAN FINDS REASON
To CRITICIZE NEM MINING
LAWS OF STATE-HIS VIEWS
OF INTEREST.

In a communication 10 the Daily
Mining Record. William P Daniels
Of Denver eriticises the new Nevada
mining laws. and points out some
weak spots which are OF considerable
interest Mr. Daniels says:
The recent opinion of the attorney
general of Nevada in regard 10 the
stamping OF stock certificates throws
the spotlight direct upon a fatal de-
rect Of the new Nevada Law so far as
giving correct Information in regard
10 the sale Of promotion stock is con-
eerned. The stamping Of certificates
Urea sury Stock and Promotion
Stock. + as futile and foolish pro-
vision as can well be imagined. and
il has been practieed in Colorado for
the sole purpose OF deeeiying inyes-
tors
When this particular matter vas
under consideration in the prepara-
ton of a bill here in Colorado. the
proposition 10 50 stamp certificates
vas Immediately rejected by attor-
neys as being Of no benefit whatever
and q provision that could be made
TO give the color of law 10 deception.
To illustrate. a company is organ
lied with 100000 shares, half Of
which. after the full paid farce
has been enacted. is returned 10 the
treasury and certificates for any por-
ton of il are stamped Treasury
Stock. II is placed on the market
al. say. cent a share. and large
amount OF II Is Immediately subscrib-
ed for by the promoters who organ
lied he company. In a comparatiy-
ely short time the price Is advanced
to or 10 cents share and then the
promoters begin 10 unload. not their
stock. but the treasury stock which
they have purchased on small month
Is payments. and the certificates Tor
II are under The Nevada law, stamp
ed Treasury Stock" under this law
nrOm ofers can we'll afford 70 be lib
eral in their organization. and after
selling their property for the fun
900 900 shares. give the entire l.
600 600. shares back TO the company
and dhave a glorious chance for ad-
Yerfising No promotion stock Ev-
cry share placed in the treasury Of
the company, Every certificate Is
sued will be stamped Treasury
Stock " and is guaranteed by the law
OF the state,
The bill which failed Of enact
ment here I'm Colorado. while seem
ingly verbose. perhaps. was a state
menf Of fact in reference 10 the stock
issued and could in no way be mani
pulafed or deceptively used II was
as follows:
e. Every stock certificate issued by
ans corporation. which is not for
stock sold by the corporation. all the
proceeds of which 90 into the corpor-
ate treasury. shall have printd or
slammed across the face of each ceF-
tifieate.. with ink. the color of which
Is eonspicnously different from that
with which the body Of the certifl-
cate Is printed. and in letters not
smaller than those printed with L.
point type. the words: This certifi-
cate is a transfer OF ownership by II
and not a sale by the company
The provisions would apply TO both
treasury and promotion stock.
When the full amount OF the capital
stock is issued In payment for prop
erty. the certificate would near no
special imprint If promoter sold
any portion of his stock. the eerti-
ficate OF that stock should bear the
required imprint and the purchaser
would thus be Immediately notified
that he was not buying of the com
pany and If he had been deceived
could take immediate steps for re-
covery 1t would also prevent the
collision that has been practieed be-
tween officers of the corporation and
distant share holders who subscribe
for large amounts on small payments
and with the aid Of the officers, dis
pose OF the stock at an advanced
price 10 those who believe they are
buving direct from the company.
WM. =. DANIELS.