White Pine news. [volume] (East Ely, Nev.) 1920-1923, 1922-04-16
NATIONAL BLUE SKY LAW
MENACE TO STATE MINES

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Opposition to tho Denison blue
sky bill now before congress is daily
increasing, and reputable mining men
throughout the west and northwest
are united In determined stand
against the measure, which they
hold would seriously interfere with
legitimate mine promotions and lead
to utter stagnation In an industry
which is now only beginning TO re-
cover.
The subject is ably handled by s.
Herbert Williams, manager OF the
Boston & Ely Consolidated, through
whose energy and untiring efforts, as
well as the expenditure of large sums
of his personal funds, the property OF
which he Is now in charge has de-
deloped great bodies of high-grade
copper ore, which. as soon as the
market is ready for the precious
metal will bring handsome returns
to the investors. |
Last Wednesday Manager Williams
addressed a letter to Senator Tasker
L. Oddie as follows:
"I note frequent references made
to the Denison blue sky bill now be-
fore congress.
Admitting that I have not read
the bill, 1t presumably is directed
against the selling of stock, and be-
ing federal issue, would operate the
length and breadth of the land.
Those engaged in mining will CO.
operate with any measure which will
prevent the unlimited sale of worth
less stocks, worthless from their in
ception, the companies frequently be-
lx,rx fa 4fxn n
options OF doubtful value and those
connected with same having no in
tention of spending one dollar in de-
veloping the properties thus acquired.
These schemes are formed to reap
easy money from the innocent
There is another side to this story
Every big mining district started from
nothing but surface 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 somewhere for some
one either to furnish capital to pro-
vide him with means, machinery and
supplies or to buy him out. This capi-
tai 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 enterprise,
transaction which Is legitimate. prac-
tical and business-like. In other
words. they are willing to take
chance. Should the property and its
neighbors prove successful con-
solidation takes place, making possi-
BILE the enormous mining enterprises
to which public attention is then d.
rected Every prominent mining dis
trict in the United States will bear
evidence to the above.
''If it's fair question, whose labor,
perseverance and cash was instrument
tai in forming or finding the nucleus
of the many enormously successful
mining companies whose manage
ment and standing compare with the
best business institutions?
"Since 1t is a we'll 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 our big
mining districts, to whom must the
prospector look for aid?
THE big mining companies with
big cash reserve will purchase for
cash developed mines on a basis OF
net values in sight (after the little
fellow has taken all the risk). What
mode of procedure does Mr.. Denison
suggest to advance a mining enter
prise to the above stage excepting
through the medium of a stock COM
panv"
After finding a man who is in
terested In mining 1t Is a rare case
where one man will undertake to fur
nish single-handed the entire capi-
tai for a mining company.
Moreover. those engaged in the
production of ore are the first to ex-
pose a mining fraud They are the
first 10 refuse cash or stock for the
use of their names.
After thirty years experience In
mining in many parts of the world
my personal observations are that
those who ostensibly mourn the pub
lie losses through the sale of stock
will usually accept position with or
a commission from company 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 In
dustries, the production of mineral
wealth.
Leave we'll enough alone. II pro-
lection of the public is what the
Denson bill Is aimed at enforce the
laws to be found In every state en-
acted for this purpose.
"A law prohibiting or restricting
the sale of stock in companies whose
avowed intentions are clear and clean
would very effectively terminate an
industry which is the backbone OF
Nevada