The Wallace miner. [volume] (Wallace, Idaho) 1907-current, 1922-05-25


bring about uniformity in state blue
0 sky laws indicates that that great or
: ganization. which keeps in close touch
with national legislation. anticipates
that the Denison bill will become a
law and is preparing to make the best
of the conditions it will impose.
The provisions OF the Denison bill
which favors stock exchanges in cities
having u population Of over 100000 is
absolutely indefensible. If being listed
on the large exchanges is sufficient
guarantee that stock is a legitimate
issue and therefore exempt from the
provisions Of the Denison bill, then the
same privilege should be accorded
stocks listed on the exchanges of
smaller cities. OF course it is plain
that this might open the way for a
general evasion of the blue sky laws.
but on the other hand TO let it stand
as it is would be manifestly unjust to
many cities which have maintained
stock exchanges for years and which
operate to the advantage and conven-
fence of a large percentage of the pop
ulation, particularly in the west. The |
record Of the smaller exchanges in the
matter OF honesty and legitimacy OF
operation compares favorably with that
of the larger exchanges In fact the
greatest scandals in stock promOuons
and manipulations in when the public
has been fleeced to a fare-you- well
have occurred in the greatest of all
exchanges. New York. AS a matter of
right and fairness, the exemption from
the provisions of the Denison bill
should be extended to all exchanges if
extended to any at all, and if necessary
an amendment could be added exact
conditions for the protection of the
public before such stock could be
listed for trading on any exchange.
There is another provision of the
dill to which the attention of the Miner
las been called and so far as we have
seen has not been mentioned in the
discussion of the Denison. bill 1t is so
ar at variance with the spirit and in
ent of the measure, and seems to
'pen the way for the notification of
is purpose. that it gives ground for
uspicion that it was slipped in as a
Joker" We quote from the Denison
ill:
Sec. 5. The provisions of this
act shall not apply when such Sc a
curity is transported in connection e
with, or when such letter, message, ~
postal card, circular or pamphlet 3.
relates exclusively to securities
sold or offered for sale. subscrip-
ton, or delivery in, any of the fol- b
lowing transactions; N
Then follows a list of transactions r.,
and finally this subdivision:
"(e) To any bank savings insti- %
tuition, trust company, insurance ei
company or to any corporation. or tr
to any broker or dealer; Provided. in
That such broker or dealer is ac-
tually engaged in buying and SELL
ing securities as a business" pc
AS we understand this provision. if IN
is bill becomes a law it viii not pre- IN
mt any broker from using the mails SC
ID any other means of interstate com ed
lnication or transportation in trad ir'
g in securities regardless of wheth- 90
the companies issuing them have
implied with the laws of the states in nv
lich the business is transacted. If
is is correct. then the way seems
en- to defeat the purpose Of the bill Ia.
a company wants TO market its stock ~,
certain state, all that is necessary q
to put it i'm the hands of broker. r..
any other of the institutions named A
that matter, and there will be no
erference so far as the federal gov .
iment is concerned. Or a person I'M Az
taking to promote such stock could nat
'ure the same advantage by opening pre-
office himself Gus
bul
70 WELL KNOWN MEN SECURE
FEDERAL APPOINTMENTS. the