The silver state. [volume] (Winnemucca, Nev.) 1909-1925, 1923-02-08
DEN|SON BLUE SKY
BILL NOT To PASS
IN PRESENT FORM

The Denison blue-sky bill, propos-
ing federal legislation which would
stifle development operations in the
mining industry, probably never
will be enacted in any form show
ing a similarity to that which it
now holds. This is the opinion Of
unbiased students of the situation
who declare in addition that the
Senate Committee on Interstate
Commerce, before which the meas
urs now is pending, holds no plan
for taking action on the bill until
many days have passed, says the
Mining Congress Journal.
Hearings held during the past
month before the senate committee
prove conclusively that the meas
ure is vulnerable in many places to
justified attacks on the part Of in
dustry based upon the proven fact
that business initiative will be
hampered in development Of new
projects if mass Of red tape has to
be cut before progress can be made.
The recent sessions were the first to
be held on the bill since it was
passed by the House last summer.
Previously, only comparatively
small amount of opposition had
been registered against the measure,
the investment bankers and state Sc
curitiest commissioners mainly hold
ing the floor with their advocacy
of legislation which would probably
rebound to their interests if en-
acted.
Reaching the senate side Of the
capitol, however, the measure found
a reception Of protests awaiting it..
And mayoring among these were
the objections filed by representa-
tives of the mining industry.
Various groups Of mining men in
the west had nodded their express
sions of opinion upon the subject,
crystalizing in the resolution
adopted by the Cleveland conven-
ton of the American Mining Con-
gress which emphasized the over
whelming handicap the proposed
legislation would impose upon ac-
tivities vital to the development
of mining claims and the allied en-
hancement of the country's NATURAL
wealth.
This main objection on the part
of the mining industry was sub
divided by mining men who ap-
peared before the committee to i'm
press upon the senatorial minds the
fact that, although efforts to Danish
promoters Of fake securities most
assuredly is sought, the efforts
should be directed in some line
other than one which will vitality
injure legitimate activities.
Concise and conclusive opposition
to the bill on the part of the min
ing industry was voiced by James
F. Callbreath, secretary of the
American Mining Congress. De-
claring that the bill, if enacted,
would stife prospecting and de-
velopment operations Of the in
dustry, Ar~sCallbreath carried his
argument still further by pointing
out the way in which the proposed
legislation strikes deeply at the
right of the citizen to determine his
own legitimate actions.
Mr.. Callbreath pointed out that
the bill, in his opinion, will not ac-
complish the purpose for which it is
offered, since it seems obvious that
takers" will make loopholes for
their activities out of the exemp-
tions provided in the bill for certain
securities from its provisions. The
wholesale and enormous losses sus-
tanned by investors in this country
who bought quantities of German
marks early in the postwar period
were presented as evidence of the
mulcting possibilities under exemp-
tions made by the bill. $50 it is
that I say the blue sky laws do not
accomplish the purpose for which
they are intended" declared Mr..
Callbreath. "But they have ac-
complished and are accomplishing
the effect Of throttling certain in
dustries.
"Since these blue sky laws came
into effect, the mining development
of the west has almost ceased.
Productions of all kinds of minerals
has fallen off. Railroads have been
discontinued and towns practically
deserted"