The Wallace miner. [volume] (Wallace, Idaho) 1907-current, 1922-03-23
Thursday. March %. 1922.
DENlSoN BILL is NOT so BAD
AS PAINTED.

SO far as the general purpose OF TIN
Denison blue sky" bin, which has beer
favorably reported in the house, is con
cerned, the Miner has discovered moth.
ing 10 justify the NOISY protest that il
being made against IT, Forty two
states now have so-called blue sky
laws, some mild in their provisions
regulating trading in securities anu
others unreasOnaDIy severe. The Den
ison bhl adds no new restrictions and
II eXempts from its provisions those
securities which have been exempted
unuer the various state laws. The Din
IS designed SIMPLY as a supplementary
measure to strengthen existing blue
sky laws. In other words, ii forbids
the use OF the mails, telegraph, tele-
phone, railroads, express or other
means OF interstate communication Tor
the purpose OF selling securities IN vio-
laton OF state laws. No doubt promo
ters OF many securities have taken ad-
vantage OF these means to evade state
laws. II the Denison bill becomes a
law, 1t Will be up to the companies is
suing these securities to make formal
application for permission to do busi-
ness IN the states desired, when an in !
vestigation will be made as to the |
legitimacy OF the offerings. We agree |
that this bill will impose hardship
upon some companies in states where
there are radical blue sky laws. and
doubtless some meritorious companies
viii at times be turned down; but this
cannot be blamed against the Denison
BILL which simply forbids the use Of
interstate means of communication for
the purpose of violating state laws.
The passage Of the bill viii have
tendency to bring about uniformity in
state blue sky" laws, which would
prove Of great advantage.
As we see it, the most Objectionable
feature OF the Denison bill is that
which exempts from its provisions Sc
'urities listed in stock exchanges To-
'ated in cities having a population OF
'vef 100000, and ignoring exchanges in
tiles Of smaller population. There
night be valid objection raised
o exempting securities merely because ,
hey were listed on any exchange, but {
We fail to see any reason to to accept ,
he larger exchanges and exclude the
mailer As matter of fact, we be- n
eve that fraudulent securities have =
cen foisted upon the public through p
arge stock exchanges more success q
llly than through the exchanges in
mailer cities, and there is no justiri-
alton for this rank discrimination. 1t ~
'ould simply result in centralizing o.
'ading in securities in the few large n
tiles and without adding security to b
lie investing public +,
QUESTIONABLE sent out by the :,
merican Mining congress to obtain #
ointment of the mining industry re- n
arding the Denison bill indicated III
ajority in its favor. although at that vi
me the bill had not been amended to to
0clude interstate business. which was D,
lie chief objection to the bill in it's m
'iginal form. 1t was also found that Va
large majority favored a movement m
unity state blue sky" laws and also tn
e principle Of national law con- nc
olling traffic in securities through oh
q mails and other means of commu- tn
cation beyond the power of the en-
ates. The attitude of the mining in
Istry toward blue sky" laws is prob Fs
'ly reflected in the following state W,
ent published in the last issue of the de
ming Congress Journal: W,
MY present belief is that blue mi
sky laws should be restrictive II,
only as to q few major points;
that they should not make any y"
express or implied attempt to trC
g uarantee investments; they tn,
should. on the other hand, hold wa
wide open the door to speculation,
without which our resources or
or inventions could not SUI
have been developed or brought we
into being. me
In brief I think that the laws