The Wallace miner. [volume] (Wallace, Idaho) 1907-current, 1912-04-11
BENEFITS Of BLUE SKY LAW
Law Compels Companies to File State
ments of Their Affairs and
Prevents Fraud

1t of the hopeful signs the times that serious and
successful efforts being made enact legislation that will
minimize if not entirely prevent, the promotion of wdcat
mining companies such have brought marked dseputc
mining in the United States says the Mining and Scientific
Press. Both the American Mining Congress and the Mining
and Metaurgcal Society have done good work in agitation
for such reform One of the most successful measures yet
acted is the so called . Blue Sky law Of Kansas.
The Kansas is entitled: An Act to Provide Tor
the Regulation and Supervision Of Investment Companies
requires every corporation association foreign or domestic
which proposes sell stock Kansas to file with the bank
commissioner clear and complete statement of the com
panys affairs down the mnuest Details to file written
and evocabe consent to accept through the Secretary
of State and the expenses of thorough investigation
by the bank commissioners Office. Books must be kept ac
cordng to the regulations set forth in the act and the books
must be open at all times to shareholder The sale OF any
stock in the Of Kansas without compliance with these
regulations subjects the agent to maximum penalty OF Soooo
ne or 90 days in JAIL both False statements made on
applications for certificate subject the applicants to fine of
from 5000 to $4,000 coupled with Jail penalty of from to
10 years. Any company which attempts to conduct its at
fairs in violation of these regulations subject to be placed in
the hands Of receiver and it's affairs wound up by the state
banking department. similar bill is proposed in Illinois
and has endorsed by the bankers association of that
state Harris the energetic president of that powerful
organization is leading in active campaign for its enact
ment A bill Of the import before the New Jer
Jersey legislature with excellent prospects for passage and
in other states the matter being actively discussed In
California promotion of the Mascot Copper company with in
adequate publication of data regarding either the company
it's Mines has called attention to the need of compelling com
pete be made prior to attempts to sell stock to
the public Even in Wall street the matter is attracting at
enon and the proposal vnds many friends There is no
place where drastic regulations of this nature much
needed that great market where there have been many
instances Of exploitation of the public through misrepresena
to ranging all the way from simple exaggeraton to the most
fragrant and fraudulent missatements The mining industry
has suffered for many years from the obouy placed upon 1t
by the operations of the gentry who have dealt in aurng lit
eraure but who have had little nothing to do with actual
mining operations The most spectacular effort of the gov
put stop to manipulation Of this nature was the
recent prosecution of George Graham Rice whose trial
prolonged for period of nearly six months finally coming to
lame conclusion last week by the government accepting pleas
Of guilty the part Of Mr. Rice and H. Shetes the former
as the principal defendant receiving Jail sentence of
while in the of the latter sentence suspended The
expense which the government put in the matter is es