The silver state. [volume] (Winnemucca, Nev.) 1909-1925, 1922-04-11
THE DENIsoN
PROPOSAL

gress, appears to westerners familiar
with the development of mines to
parallel the thought of a man cut
ting off an entire leg to cure the
aching of one small toe. For that
is about what the Denison bill would
do were it to become a law. In an
effort to guard against the activities
of fraudulent stock promoters, the
authors of the Denison bill would
likewise prevent sale of legitimate
mining securities, even though the
report they have succeeded in get
ting before congress infers other
wise.
The principal objection against
the Denison bill is that it would
prohibit the activities of the man of
small means in the development of
mines. This in itself means practical
abandonment of the mining industry,
in this state at least, for it is well
known that it is always the man
with little or no capital who goes
into the hills to prospect and find
mines. 1t is only after he has done
so that the man of means becomes
interested. Certainly wealthy men
seldom if ever undertake prospect
ing trips. With incentive destroyed
for the prospector, how are new
mines to be found for development
when those now being operated are
stripped of valuable ores?
Only a very small proportion of
mines are found with values in
the grass roots" The rest are de-
veloped by large expenditures of
money, usually derived from the
sale of stock. If a mining man
should find what he believes will de-
velop into a valuable mine, under
the Denison bill he would have to
comply with the laws of forty-two
states, or as many thereof as he
desired to sell stock in. He would
be liable under the law, and sub
ject to fine of as much as $4,000
and Imprisonment, should he fail
to so qualify his offering. He
would also be liable if any of his
literature should be distributed, or
if a newspaper carrying his adj
vertisement, should go to a sub
scriber in such a state.
It has been estimated that an
expenditure of $4,000 would be
necessary to comply with the blue
sky laws of forty-two states, to
say nothing of the endless red
tape involved. When it is realized
that Colorado, Connecticut, Dele
ware, Nevada, Pennsylvania and
Washington are the only states
without blue sky laws and commits
sions, all with different sets of rules
that must be complied with, and
forty-two sets of commissioners that
must be interviewed personally
or interminable correspondence car
ried on, then the magnitude of the
task confronting the small mining
operator before he can commence
to sell his stock, can be seen. Also,
where one state will require a
complete engineers report, costing
q large sum, another will require
something else, equally expensive,
to say nothing of the fees collected
to maintain the different state blue
sky commissions.
The committee report on the
Denison bill cites that section four
provides exemptions from inconven-
fences created by the bill. 1t does,
but only for securities issued by
banks, railroads, etc., and those
regularly listed on stock exchanges
in cities of 100000 population or
over. During the Divide boom in
this state worthless stocks were
listed on exchanges, only because
a showing was made that the
treasures of the companies con-
tanned sufficient money to meet
Requirements" But what of the
prospector who knows he has a good
property but is struggling at all
times to keep enough money COM
ing in from the sale of stock to
keep the mine operating until on
a production basis? To put such
requirements before him would be
only to have him give up in des-
pair.
People should be protected from