The silver state. [volume] (Winnemucca, Nev.) 1909-1925, 1922-05-11
There was no objection.
Following are the letters ]

Boston a. Ely OOnSOl1uaCeQ Mln-
ing Co., Ely, Nevada, April II,
1922. Mr.. S. S. Arentz, House of
Representatives, Washington, d. c..
Dear Sir: l note frequent refer
ences made TO the Denison blue sky
bill now before Congress.
Those engaged in mining will CO
operate with any measure which
will prevent the unlimited sale of
worthless stocks, worthless from
their inception; the companies fire.
ouently being organized to acquire
leases or options of doubtful value
and those connected with same
having no intention of spending one
dollar in developing the properties
thus acquired. These schemes are
formed to reap easy money from
the innocent. There is another side
of this story. Every big mining dis
trict started from nothing but sur
face indications. The prospector
found the vein, and in many cases
developed commercial ore by hard
work and many privations. He is
now at the end of his tether and
must look elsewhere for some one
either to furnish capital to provide
him with means, machinery, and
supplies, or to buy him out. This
capital in ninety nine times out of
one hundred is furnished by people
of small means, accepting stock for
the money furnished, showing him
or her to be a partner in the enter
prise, a transaction which is legiti-
mate, practical, and businesslike. In
other words, they are wiling to take
chance. Should the property and
its neighbors prove successful, a
consolidation takes place, making
possible the enormous mining enter
prises to which the public attention
is then directed. Every prominent
mining district in the United States
will bear evidence to the above.
If it is fair question, whose la
Dor, perseverance, and cash was in
strumental in founding or finding
the nucleus of the many enormous
successful mining companies whose
management and standing compare
with the best business institutions?
Since it is a well-known fact that
the big mining companies will not
advance a dollar in such an enter
prise as described above and this
being the foundation of all of our
big mining districts, to whom must
the prospector look for aid?
The big mining companies with a
cash reserve will purchase for cash
developed mines on a basis of net
values in sight latter the little fell
low has taken all the risk. What
mode of procedure does Mr.. DENIM
son suggest to advance a mining
enterprise to the above stage ex-
cepting through the medium of q
stock company?
After finding man who is in
terested in mining, it is a rare case
where one man will undertake to
furnish, single-handed, the entire
capital for a mining company.
Moreover, those in the production
of ore are the first to expose a
mining fraud. They are the first to
refuse cash or stock for the use of
their names.
After 80 years. experience in
mining in many parts of the world
my personal observations are that
those who ostensibly mourn the
public losses through the sale OF
stock will usually accept a position
with or commission from a com.
pany whose treasury was provided
with cash from the sale of stock.
The hazards in mining are ample
without having to combat measures
which, in operation, would succeed
in killing one of the cleanest of all
industries-the production of min
eral wealth.
leave well enough alone. If pro
lection of the public is what the
Denison bill is aimed at, enforce
the laws to be found in every state
enacted for this purpose.
A law prohibiting or restrictinl
the sale of stock in companie,
whose avowed intention, is clear
and clean would very effectivel,
terminate an industry which is tn,
backbone of Nevada.
| have the honor to remain,
Respectfully yours,
S. HERBERT WILLIAMS.
New York, April 10, 1922
Hon. Samuel S. Arentz,
House Office Building, Washing
| ton n