The Wallace miner. [volume] (Wallace, Idaho) 1907-current, 1919-01-16
PROPOSED BLUE SKY LAW IN
WASHINGTON.

For many weeks, the Spokane gentle
men who presume to shape the des-
tiny of the state of Washington in
mining matters have been railing
against the mere suggestion OF
blue sky law" which 1t was contend
ed would prove a knockout blow to
the mining industry of the state. AS
an offset to the proposed radical
measure a committee was appointed
by the Northwest Mining association
to draft law to be presented to the
legislature, the purpose of which
would be to protect the public against
wildcat mining promotions and at the
same time give encouragement to
legitimate mining enterprises. 1t is
worthy of note In passing that mining
men In state that has never ranked
high in mining should find 1t neces-
sary to protect the public from invest
ments in their own industry, while
ignoring the wildcat promotions in city
real estate. farm land. orchard tracts
and other so-called legitimate invest
ments which have long been notorious.
Having framed bin which met the
approval of the Northwest Mining as
ISOLATION and the Spokane Stock ex-
change, the measure was presented to
the Spokane Chamber of Commerce
which also gave it the stamp of APP
prevail.
According to summary of its es-
sential points. as published in Spo-
kane paper, the proposed law provides
that before the stock Of mining cor
poration Is Offered for sale within the
state the company shall file with the
secretary of state and the county audi
tor, in addition to its articles of in
corporation. verified statement az
TO the number of shares for which II
IL capitalized, amount of treasury
stock, location of the property OF
claims, the title to such property,
copy of the prospectus and all liter
allure, the names and addresses OF of
ficers and trustees, the amount OF de-
velopment work, the stock certnlcat'
e be used and to file between January
! and March l each year financla
statement showing the operations fol
the year and the work done and rev
enue earned.
In spite of the avowed purpose o
saving the state from the evil conse
q, ences of blue sky law, the spon
s,rs for this law appear to have mad
/, as blue as some of its prototypes
In other states. Its enactment woult
involve mining corporation OF an
other state in an endless tangle OF rec
tape in order to offer its securities 10
sale in the state of Washington, stat
in which the people have profited won
derfuliy by such INVESTMENTS and wh'
have rarely been victimized through
wildcat operations. Comparatively few
foreign mining companies would incu
III, trouble and risk of complying will
this proposed law for the privilege o
doing business in the state. To al
equal or greater extent 1t would oper
ate against the development of th'
mineral Resources of washington, an'
In this respect particularly the fran
ers have taken remarkably marrow
and contracted view. Although stat
OF great mineral possibilities. meta
mining in Washington is still an infan
INDUSTRY and should have the encour
a.ement of liberal laws. There are to-
MANY fields in which mining opera
items are unhampered by needless law
to expect capital to seek investmen
in unproven territory where laws hin
der ana harass rather than help ant
encourage the enterprise.
The proposed law is directed at th'
sale of treasury stock as a means o
raising funds for development purposes
but would it not also apply to th'
transactions on mining stock ex'
changes? Would it be possible, II TINS
nil, becomes a law, to trade in shares
of mining companies which had failec
N comply with the provisions of TINS
law? The fact that the Spokane
stock exchange has endorsed it woule
indicate that 1t would not apply tt
the operations Of the stock exchange
The question naturally arises, II the
public is to be SO scrupulously pro-