Atlanta semi-weekly journal. (Atlanta, Ga.) 1898-1920, 1919-12-12

WASHINGTON, D. c.. Dec. IA national
w law to protect excitement-lovng America
against the evils of wildcat speculation
is again planned by congress.
"Bue-Sky" laws enacted by some thirty-eight
states have proved inadequate. Sucker SITS kept
for business purposes by promoters of Swindle
schemes grow longer every year.
Instead of growing less gulible as ad-
vance in civilization, we seem to become more
trustful. Brooklyn bridge and the subway are
sold daily to newcomers in New York City,
who innocently hand over their cash to smooth
tongued SharperS. Men who would not invest
tested its financial SOundneSS will without hest
tation sink their savings into fake South
American fruit rubber investment in re-
Spouse to circular in the mornings mail.
"You cannot legiSlate good Judgment into
the people" says one business man. who thinks
that people who invest savings in get-rich-q quick
ShemeS would, if shut off from this form of
amusement, find some other way to lose their
money.
Still, the chances are good that congress will
pass a national blue-Sky law, inSuring some
protection to the people Good effects of blue
sky laws are noticeable in the thirty eight states
that penalize the wilful floating of worthless
stock and mSrepreS entation of facts by pro-
motors.
The main trouble with the state laws is the
difficulty of eXtradtiOn. Most of the laws pro-
vide for prosecution of the offender only if
his business is organized in that state. The
promoter of fake propositions usually incorpo-
rates in one state and operates all over the
country, except in the state in which he or
gained his company. When complaints come
in to district attorneys of the states in which
he operates they cannot touch the promoter,
unless the state in which he incorporated will
extradite him. This any state is reluctant to
do, and will not do unless its own laws recog-
nze the mans OffenSe as such, so that usually
the case is dropped.
The proposed law would compel organiza-
tionS that sell stock in more than one state
and make use of the United States mails in do
ing so, to file statement with the treasury de-
partment. This statement would contain among
other facts the names and addresses of members
of the board of directors, and of the officers
of the corporation, and the number of shares
held by each; description of the capital and
finances of the organizations; and an explana-
ton of the project. The firm would have to
refer to this statement on all advertising liter
ature and in all communications dealing with
sales of stock, explaining that comics of the
statement could be consulted at the poStoffice
at the state capital, and offering to mail a
copy free on request
Persons cheated by msStatementS of stock
selling companies that operated under this law
could demand a return of funds paid to the
companies and damages for any losses ANY
Misrepresentation of project would be pun
iShable by fine of not more than $4,000 or by
one year OF imprisonment, or by both. The act
provides that bureau of the treasury depart
ment be created to administer the law
The mine operators and promoters object to
the present bill on the ground that it would
make it too easy for the investor to sue the
company, in case it caused him loss The
advocates of the law say it would never operate
to the detriment of legitimate business. There
seems to be general agreement that some sort
OF federal law penalzed deliberate misrep-
reSentatiOn is needed.
One factor which holds back enactment of
this law is the gold situation Gold mining
has always been largely dependent on Specu-
laton, and so little gold is mined now that
bankers and business men are apprehenSive of
| a measure, which, they claim, would further cur
tail gold prospecting. r
Practically all except few high-grade mines
are idle 1t costs 90 per cent more to pro-
duce gold now than five years ago, but oper-
ators cannot raise the price on gold as it is
fixed at the mines at $2O.67 !. fine ounce. Man
ufacturing jewellers and spectacle makers are
SO put to obtain sufficient amounts of gold that
they melt large quantities of gold coin. The
extent of this destruction of coin by industry
is indicated by the fact that the minis allow
for the melting of about 100000 in gold every
year. The present low rate of production, to-