Montana oil and mining journal. [volume] (Great Falls, Mont.) 1931-1953, 1936-02-15


perty of merit, can get govern
ment loan up to $4,000 for de-
velopment work.
mot one development loan has
been granted in this state me
theory has served as good pub
LEFTY for politicians but nothing
more. With their pictures in the
paper they can tell the voters now
thew are "liberalizing" loans to the
miners. But no miner in Montana
has received such a loan.
fsThen il / have a developed pro
perty and need mill or other
equipment, l am supposed to be
able to get a loan in any sum
whatever.
"How many loans have been
granted in Montana?
Two
How did they get them?
"Rv going down to Washington
and spending as much money on at
tOrneys, accountants, hotel bills ana
departmental "lobbying" not for
weeks but for mOnths-as it would
take to put the average mine in
Operation No average miner can
afford to 60 down to Washing
ton to get a loan through If he
snent that much of his stock
holders money, he would be thrown
i'm iail by the securities commission.
And that brings up the other or
organization: the securities com
mission.
REMOVING after a year of wait
ing that it is impossible to get a
government loan to finance my
mine, turn to investors. The
first man / meet says:
IF your property has any mer-
it at all, you can get a government
loan"
II try to tell him the facts but
he only grins. The more / say the
more he is convinced that my pro-
perty has been turned down by the
expert engineers of the govern
ment when the truth is that gov
eminent engineers haven't looked at
n dozen properties in Montana and
certainly not mine.
ssThen / go out and try to or
ganize a company of influential
men who can be convinced OF the
facts, and propose to do public fin
ancing. They go as far as to look
at the securities act. in which they
discover that the man who lends
his name to a corporation is likely
to be sued by all the other stock
holders or the money invested.
should the venture fail. Each one
is a stakeholder, on an even foot
ing. "Why should I be the goat,
when have nothing to gain by
being a director?" each one asks.
81 then decide to organize a
corporation with my wife, my
daughter and myself as directors
and to assure all liability, for am
not afraid to back up my acts and
deeds. try to present my prop
osition to the public through the
public print. 1 find that the Journal
and other trade publications are
afraid to handle my advertising,
Daily newspapers won't print my
advertising because they are afraid
of some liability under the rules
providing for the printing of a
prospectus. If l printed a dry
bale of hay such as is called a
prospectus" / wouldn't take in a
dime. 1t would scare away the most
enthusiastic investor in the world.
"Show me one Montana mining
company that is successfully finan-
cling under the provisions of the
securities act and I will pledge my
right arm to deliver 100 votes for
the New Deal candidates at each
election for the remainder of my
life.
"If were only smart, which 1
am not. suppose 1 could figure
out way to get around the New
Deal hurdles. AS it is, the greatest
hope l have is the success of the
Townsend Plan. at which time all
my married sons and daughters
can bring their families and more
in with mother and me and we can
all spend our remaining days cheer
ing for the tax collectors.
81 know that you are a good
booster for both the RFC loans
and the SEC commission and l
don't suppose you will want to
print this, but I want you to SER
iOusly think it over.
Respectfully submitted,
"a Handbook Miner"