Worcester Democrat and the ledger-enterprise. (Pocomoke City, Md.) 1921-1953, 1922-02-04
Says "Blue Sky" Bill Would
Be A Detriment To State.
Editor Democrat

Dear SIR
Would an open letter to you on a
question of considerable Importance
that is before the legislature for ac-
ton, be useful to you, as member
of the assembly, and to the people
generally?
If SO, l might give a few hints un.
der my own name, so that they can
be given such, and only such impor-
lance as the source would merit.
l refer to the "Blue Sky Bill" III
troduced in the legislature by Mr..
Nolfnger, as reported in the Balti-
more Sun last week.
| should not say that some such
law might not be useful, but should
say that it should be very carefully
considered in some Of it's aspects and
bearings, especially in the so-callcd
speculative class of business.
In business acquaintance of some
thirty three years, with conditions
chat were largely dependent upon out
side capital for the development Of
hidden resources that were, and are,
Of vital interest to the country, |
found these general conditions to be
true;
Oil and all kinds of minerals, GOLD
end silver lead, copper, coal and iron,
in fact all minerals can be classed as
speculative, and sometimes highly
speculative business, and yet what
would the banks and the genera!
business of the country do without
these products?
There can be no defined certainty
OF the extent of speculation in them,
for many of the richest strikes in the
country have been made in the face
CT ridicule and supposed impossible
ty, and it is often necessary in the
ta>elopment period to Withhold infor-
nation of good showings until gov
eminent requirements have been COM
piled with and title secured, to avoid
trouble and litigation, and yet it
takes money to carry it through even
this period.
So it would seem to be difficult for
any Legislature or person to define
any degree of hazard.
After this period is passed and IT,
ties secured the operator can, and
usually does make all the showings
he can to raise the necessary devel-
opment money, and at the the best
1t is difficult, because people with
money arc cautious.
In marketing these securities if the
.5tate adopts very drastic rules AMI
restrictions it would probably bar out
I'll speculative enterprises from tn,
State, and to that extent We wou d
be saying that we didn't want any of
these enterprises developed in this
country.
Optimism and enthusiasm are abst
lutely essential in any person CT
company developing these things, and
no person or company would want to
put time, work and money into them
without reasonable expectation of
getting good results.
Of course dishonest promoters
sometimes work any kind of fraudu-
lent scheme to gain their ends and it
might be well to have some sort of
State supervision of the business 10
prevent that kind of work and such
provisions should be as free from red
tape and expense to the companies IN
such enterprises as possible.
The Sun report on this bill does
not state many of its provisions, but
enc that it speaks of strlnvs me as
very Objectionable, that is its p4o-
posal to make the Bank Commits
sioner" the arbiter of these things.
Bankers are too ra-conservative
and too much afraid of the with
drawal of money for speculative pur-
poses in the nature of the industries
that am speaking of, to pass upon
such matters. They would kill the
goose that lays even their own golden
eggs, rather than recommend such
things, and it seems to me that the
"Highley Bill" in providing COM
missioner of securities, is in that re-
spect much better, as such com
mission without a class-business aft
iliation, ard would give unbiased at
tcntion to the needs of all classes of
securities.
Many concrete instances of success
and failure could be quoted in such in
vestments, and with good honest con :
pany management it is contended uy
good authorities that there is NJ
greater percentage of failure in these,