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Show Page 2 April 27, 1936 The Westers Mineral Survey, Salt Laie City, Utah WESTERN MINERAL Editorial Signing Merger Deal Use Horse Sense Read and understand offering circulars and prospectuses before buying any stock. This was the advice of the SEC chief in Salt Lake City this week. SURVEY PRIM LORRA1NI NEWS 431 - CIRCULATION Phone Chuck Street EM u The person who has enough experience in the game wont hurt because he knows the ins and outs and the innuendos get dropped in written matter in these pamphlets. Its the little guy, unlearned in the ways of the stock market, who misses the cue lines. Things to look for glittering generalities the company properties are located in rich uranium area surrounded by producing, shipping companies. Lists of formations, vast claims of what the guy next door has, or thinks he will have. HARRY B. MILLER . Subscription ratee: $8:00 for two for one fear. $3.00 Problems, latest research developments and reviews of the fu- Mountain Oil and Gas Association, Refining1 Division when they met in Salt Lake City Thursday and Friday. Technical meetings and field trips highlighted the two day confab which was directed by George E. Hinckley, chairman, Charles Ramsey and John S. Cole. u(Acri(e hcul . Interested In Uranium Activities? 'Whe An 't? . . . Right now the circulation of the WESTERN MINERAL SURVEY, is keeping pace with the uranium industry in general booming! Keep posted on latest news and quotations by reading the WESTERN MINERAL SURVEY regularly . . every week. I year SUBSCRIBE NOW! 2 years $5.00 $3.00 Circulation Departments 421 Church St - P.0. Box 2608 Sail Lake City, Utah NAME ADDRESS CITY STATE Remittance Bill me later Publisher Editor GAIL EEXrCH CHART COURSE Robert Chastain, Mafic Uranium president, discusses Atomic Fuel Extraction, newly formed company, with CoL Ted Enter, executive vice president and Jack Turner, pres- ident. (See story Faye 1). All news appearing in the Western Mineral Surrey la obtained from aoureea tailored to be reliable but no reaponslbU-lt- y la aaanmod for accuracy of atatementa. Reproduction of any material from this publication mu at hare written permission from the publisher. SEC Chief Advises Buyers, and Brokers interested in the Denver area, said, due to the Armstrong of smaller uraboom amazing nium companies compared to the national average. Regulation A filing with the commission during the period 1953 to 1955 have increased more ban 25 per cent, he noted. While ilings in New York have decreased 15 per cent, the filings from Denver have skyrocketed over 300 per cent. Another aspect of the wests problems, currently confronting he Commission, is due to the increase in the number of broker dealers in the area. Over the past three years, Armstrong said, the national average of broker-dealer-s has shown an increase of 10 per cent per year. In Denver and Salt Lake, however, the increase has been upped to 90 per cent. There were only 147 broker dealers in this area in 1954, he said, compared with 271 new broker-dealer- s who had established offices in the Denver region alone by March 31. vice to the stockholder or potential stock buyer during his Salt Lake session. companies Many le said, are attempting to retard ;he effectiveness of SEC rulings y merchandising over long distance telephone with high pressure salesmanship. The prospective stock bnyer should not allow himself to be pressured into buying stock without first seeing, and thoroughly understanding the offering circular or prospectus of the comfly-by-nig- ht pany. Armstrong stressed the fact that the Securities and Exchange neither approves nor disapproves the value of the securi-ie- s. Any circular or prospectus bearing the SEC approval must bear this information on the cover. He also clarified the fact that all geological reports contained have been carefully inspected by mining geologists on the SEC staff. In order for a security to obtain SEC approval, the offering circular is thoroughly investigated by the commission to make sure that no fraudulent or misleading material is contained therein. SEC Offers Aid If any statement made in a prospectus or offering circular proves later to be false, anyone who feels that he has been misled by the statement has legal recourse by filing a complaint with the SEC, the chairman stated. The stockbuyer, to he safe, should never buy without seeing and understanding an offering circular before buying, he stress- SEC Role Grows this In situation the SECs role as law enforcement agency has been doubled, he adds. The commission has appointed three men to its Denver staff during 1953 and three more this year. Two of these SEC agents will operate from Salt Lake City. Explaining the duties of the SEC and the need for a larger staff in the Intermountain area, Armstrong hastened to say "This is not to be construed as a crackdown. The Intermountain west is by no means the only area in which ed. the SEC is interested. This area, Prior to the last few years, however, has so increased in ac- Armstrong noted, there have been tivity it takes more men to ad- very few suspensions of small minister the regulation of uni- companies from their exemption formity in adminstraton of law. to full registration. In 1953, for The SEC defines a Regulation instance, there were only two A company as one whose total such cases. stock is valued at not more than Offenses On Increase $300,000 and by virtue of this fact But the said, claims exemption from full regis- has been rate, Armstrong on the insteadily tration as provided in Regulation crease. In 1954 there were nine A in the Federal Securities Act. cases and during the first half of Dealer-Broker- s Law 1955 there were 11. In dealing with dealer-brokerIn the second half of 1955 susArmstrong said, the SEC has pensions numbered 37 and in the rigid registration requirements. first three months of this year 22 must pass rigid companies have already been susAll broker-dealer-s s, : jean; Fleaae mention Weetern Mineral Surrey when writinr to adrartiaera. Adrer-tirin- r ratoe on application. (Continued from Page 1) ture and displays such as this were seen by members of Rocky 49 Salt Lake City, Utah eecond daee matter at Salt Entered City, Utah, under Act of March 3, 1879, The SEC can only go so far to protect the. buyer. In the long run die only protection he can be guaranteed is Knowledge, understanding (plain horse sense) and, still, a gambling spirit --3640 ADVERTISING Box 3608 How many people know how to do this seemingly simple task to protect themselves against fraud and loss of funds? Be sure. the printed matter says something; the maps mean something. If the prospective buyer doesnt know how to tell truth from fiction, hed better take the extra minute to find out from a trusted broker or a person who has the proper background. EM registration requirements.' To insure necessary inspection the SEC has adopted the continuous visitation program through all areas. The SEC chairman offered ad pended. The spirit of American enterprise depends on the access of the legitimate extractive enterprises to capital markets, and the availability of speculative pros pects, Armstrong declared. The Federal Securities Act undertakes to require clarity of descriptions and the detection and mnishment of fraud. The SEC, ie added, is concerned with en-- : forcing these provisions, which are applicable all over. The Securities and Exchange Commission has no interest in tempering legitimate acquisition of captal, but it has every interest n protecting the public from fraud, he said. The uranium industry is no different than any other mining industry . . . circulars are required by law to be distributed to purchasers of stock. The public should be warned hat common horse sense would demand seeing the circular, he added. Armstrong strongly concluded: most effective weapon against fraudulent brokers and companies is to complain to the The SEC. Best Weapon All complaints are given immediate processing and are not relegated to the wastebasket, he states. Six other members of the Federal SEC were in Salt Lake City with Chairman Armstrong.' The group included: Commissioner A. Downey Orrick, California; Albert Scheidenhelm, executive director of the SEC; Byron D. Woodside, director, Division of Corporate Finance; Philip A. Loomis, Jr., director, Division of Trading and Exchanges; F. Bourne Opham, III, - assistant to the executive director, and Milton J. Blake, regional administrator from the Denver Regional office. West-Silv- er to Drill Silver-Lea-d Western Corp.,-WallacIdaho, Square Deal Mining & Milling Co. and Uranium Mines, Inc. will start drilling on two claims in the Big Indian District, Utah within 30 days. According to a Western Silver progress report drilling will explore the Angus No. 4 and 5 claims on Phoenix property. Western-Silve- r owns interest in the claims. Remaining interest is owned by the other companies. one-quart- e, |