The silver state. [volume] (Winnemucca, Nev.) 1909-1925, 1922-05-11
DEN|sON PROPOSAL
FOUGHT IN HOUSE

fUUbHl IN HUU1E
The Denison bill, passed in the
House of Representatives recently,
over the protests of western men,
bers, which is generally conceded
would prohibit practically all mine
and oil development in this and
other states, if it becomes law,
forms an interesting topic for min
ing men of this community. The
fight against the bill in the House
sheds light on the subject, portion
of the debate, printed in the Con
gressional Record, following:
Mr.. AREN'T: Mr.. Chairman, |
offer an amendment, which l send
to the clerks desk.
The Chairman: The gentleman
from Nevada offers an amendment,
which the clerk will report.
The clerk reads as follows:
Amendment offered by Mr..
Arentz: On page ., after line 8, in
sert a new paragraph, as follows;
"(dD Any security issued by
corporation owning a property, bust
ness, or industry within the state
of its incorporation, the issuance
and sale of said security having
been Investigated and approved by
the said state"
The Chairman: The question is on
agreeing to the amendment.
Mr.. AREN'T: Mr.. Chairman, | wish
to say that am in sympathy with
the proposal of the committee to
suppress the sale of fraudulent
stock, but | do not wish to bring
consummation of this matter about
by sitting the promotion of legiti-
mate enterprises for the develop
ment of the natural resources of
our country. For instances, if the
owner of a small property wishes to
do development work or raise
money on his property he must
either have an agent or go himself
to the several states of the United
States, at cost of approximately
81 900 for a permit in each state.
The chairman of the committee has
stated that it will cost $1,000 or
more, for the following reasons:
A man owning this property,
wishing to register his stock, l may
say, must either go there in person
or have an agent go there. He
must spend from two months to six
months in bringing the matter be-
fore the proper commissions of the
states, paying the expenses during
this time, and in many cases a rep
resentative of the state must go to
the property, make an investigation,
and report back to the commission (;
and leave it to you gentlemen, if
it will not cost more than 81 900 to
do this. 1t would mean, then, that
for the 80 states it would cost ap-
proximately $4,000 for a man who
wishes to raise possibly $4,000 or
$4,000 for the development of a
small property to bring this prop
erty to the point where a sufficient
amount of ore would be developed
or a we'll be carried down to a suf-
ficient depth to justify a man of
larger means or a corporation in
taking up the property and carrying
it on. When it reaches this point
this man or this corporation could
palce it in the hands of dealer in
stocks. On page 10, line IT, the
bill provides as follows:
(e) To any bank, savings insti-
tuition, trust company, insurance
company, or to any corporation, or
to any broker or dealer.
He is exempted provided that
such broker or dealer is actually
buying or selling securities as a
business. From actual experience ]
know that it is just such a dealer
who could do this. | could mention
several big dealers in New York and
| Boston and dozens of such men who
| have the money and have the means
| to start out with tremendous big
advertising propaganda and bring
before the people of the several
states their proposition, sell them
unlimited shares of fraudulent stock
in a property of little, if any, merit
but the man of small means
who has a meritorious property,
needing but few thousand dollars
to put his property on a producing
basis, would not do this.
There are many such properties
in my state of Nevada, properties
containing nearly if not all minerals
and metals utilized in every human
endaavor