The silver state. [volume] (Winnemucca, Nev.) 1909-1925, 1922-04-06
PROVISIONS MADE
BY DEN|s0N BILL
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no time has been lost there In
taking action to prevent passage
of the bill If possible, and fol
lows:
at may interest you to know that
the following telegram was sent to
Congressman Samuel S. Arentz
Washington, D. c.:
Believing the Denison Bill to
be deadly menance to the Oil and
Mining industry of the United
States we urge that you use every
effort to defeat it.
This telegram is a petition from
Messrs. A. ]. Crowley, M. T. Whita-
ker, Sam1 Whitaker, Geo. Stone
breaker, James Brown, Maurice
Cushin, A. Alley, N. P. Rolph, Sam
Willig, Fred Willig, Edgar Noble,
George Swager, James Olsen, T. G.
Brabazon, P. N. Webster, all of
Sulphur, Nevada :"
The Committee Report
A portion of the committee re-
port on the Denison bill, showing in
part what opponents of the bill
must overcome, is printed below:
The committee on interstate and
and foreign commerce, to whom
was referred the bill (H. R. 1O598)
to prevent the use of the United
States mails and other agencies of
interstate commerce for transport
ing and for procuring the sale of
securities contrary to the laws of
the States, and for other purposes,
and providing penalties for the vio-
lation thereof, having considered the
same, report thereon with a recon-
mendation that it pass. The bill
has approval of the Post Office
Department.
The necessity for Federal legis-
lation to aid in preventing the
flotation and sale of fraudulent and
worthless securities has become
more and more apparent in recent
years. This country, instead of
leading, has followed other coun-
tries in enacting such legislation.
After the bursting Of the South
African speculation bubbles which
brought disaster to SO many in
vestors in England, that government
in the early nineties passed the
act known as the companies act to
prevent the flotation of fraudulent
securities, which with its subse-
quent amendments has protected
the investors of that country reas-
onably from this class of fraud.
Other European countries and Aus
tralia have long ago enacted SINH
lar legislation.
Laws to prevent fraud in con-
nection with the sale of lands and
of other tangible property have
long been in force in all of the
states. But until quite recent
years no legislative action seems to
have been taken to prevent the
sale of fraudulent chooses in action,
fraudulent and worthless corpor-
ate securities. This neglect led no
doubt to increasing and holder
practices in the penetration of fraud
In the sale of securities until the
state of Kansas in 1910 passed the
first so-called blue sky or fraudu-
lent securities act passed in this
country.
The Kansas law was an exper-
iment in a new legislative field.
1t was, of course, crude and inn
perfect; but it was soon improved
by the light of experience. 1t re-
suited in preventing the flotation
Of many worthless securities and
saved the people of that state many
millions they would otherwise have
lost from investments in such Sc
curities. To Kansas must be given
the credit for blazing the trail
for this class of legislation. Other
states soon followed with similar
laws.
The necessity for, as well as the
effectiveness and value of, such
legislation is apparent from the
fact that now az states have fraudu-
lent securities laws. All the states
in fact except Colorado, Connect
cut, Delaware, Nevada, Pennsylvan-
la and Washington now have such
laws. The last legislature of the
state Of Washington passed very
good blue-sky law, but it was We
toed by the governor because it was
not as comprehensive as he thought
1t should be. A complete securities
law will no doubt soon be enacted
in that state.
Efforts are being made to get
similar legislation in most of the
remaining states. Massachusetts,,
Rhode Island, New Mexico and 9TH
err states have recently passed splen-
did laws of this kind. Other states
are each year revising and amend
ing their laws so as to correct
mistakes and make them more eff
fective.
The three states, New York, New
Joreav md Marvland which have