The silver state. [volume] (Winnemucca, Nev.) 1909-1925, 1922-03-30
THIS COUNTY MAY
LOSE VAST sums
Correspondent Tells of Outlays That
Will Be Denied This Section
Should the Denison Bill
Become Federal Law
Editor, The Silver State:

gerous to Nevada the Denison bill,
regulating the interstate sale of
stocks and securities, would be, let
US see what the direct result of this
bill, If it became law, would be to
Winnemucca.
There are number of mining
companies operating in the territory
near Winnemucca whose develop
ment has been and is being today
made possible by the sale of stocks,
a large part of which have been sold
to people living outside of Nevada.
1t is estimated that during the
past twelve months there has been
paid out for supplies, material, la
Dor and hauling a total of over
100000 divided among the various
mining districts as follows:
Winnemucca Mountain and SUM-
shine districts, $4,000.
Harmony mining district, $65, 5,OOG.
National district, $4,000.
Paradise Valley district, $4,000.
Golconda district, $4,000.
Jackson Mountain and Sulphur
district, including oil well at Sui
phur, $4,000.
Ten Mile district, $4,000.
Miscellaneous, small operators and
prospectors, $4,000.
In normal years this amount
would be increased to around
$750,000 to $1,00O,0O0.
The estimate above does not in
clude the hundreds of thousands of
dollars spent in the Midas district,
where producing mines are paying
the kind of dividends that make the
investors of other states want to
send their dollars to Nevada for in
vestment, nor does it include money
spent in the Kennedy district,
though Winnemucca gains by the
activities in these and other places.
About 85 per cent of the above
amount, or $250,000, was spent
right here in Winnemucca with the
local stores or paid to men work.
ing at these mines who spent the
money in the stores. There have
been some hard times here during
the past twelve months. Figure out
how much worse they would have
been if the men who are developing
mines in this territory had not gone
to other states and raised this
money and brought it to and spent
it in Winnemucca.
Do you want to see law passed
that will keep this money out of
Winnemucca? If the Denison bill
becomes law the development of
new mines will very nearly stop and
outside capital will not be brought
to Nevada.
It is not alone the mining indus
try that will be destroyed. A large
number of companies are drilling
for oil in Fallon, Elko, Ely and
other parts of the state, including
the operations at Sulphur, right at
our doors. No one can tell whether
there is oil in the state or not ex-
cept by drilling wells. 1t costs
money to drill wells. If enough
money cannot be raised for the pur-
pose in Nevada it becomes necessary
to go outside of the state to get it.
There is risk in putting money
into oil wells. So is there a risk in
starting a grocery store. But if a
well hits oil the profits to the stock
holders are large enough to well
repay him for the risk he took. If
oil is discovered in one we'll in Ne
vada it will mean millions of dol
lars of capital will be brought into
and spent in the state. Every coun-
ty in the state will see drilling op-
erations started within its borders.
When the first well at Stephens,
Arkansas, was brought in as a pro-
ducer, making one hundred barrels
of oil a day, the sum of $3.50, 900
went into the town of Stephens by
telegraph within forty-eight hours
from the time the oil was discov-
cred. This money went to the farm
ers and merchants.
If the Denison bill becomes a law
and oil is then discovered in Nevada
or new gold strike is made some
where in the state no one will want
to buy oil land or mining claims un-
less they happen to be millionaires
and can drill their own wells or dig
their own shafts and tunnels with
out selling stock to raise the neces-
sary money. What price do you
think Won would get for vour oil