Show MINING AND BLUE SKY LAWS just a few weeks ago joseph P nenzel a well known mining operator of nevada and california contributed an article to A a coast paper on why eastern capital is asked to finance western mines in that article mr nenzel discusses a number of features of the subject and altogether makes a showing that is favorable to the promoter of mine and oil development propositions though he seems to have got his wires crossed regarding the application of the so called blue sky laws which have been adopted in so many states previous to taking up the latter phase of his subject he makes some good points the easterner mr nenzel says frequently asks why if your mines in california and the west are so good do you come east to finance them dont the people in the west believe in your mines and why do they not develop them in answering the point is made that the east does not finance our mines of the west at all it merely returns probably less than one half of one per cent of money which is yearly sent east for investment in one commodity alone california today proceeds the writer has about one million automobiles at an average of 1000 each which is a conservative serva tive estimate this amounts to one billion dollars the jhb annual cost of accessories and parts will easily require approximately an additional hundred million these figures alone not considering the hundreds of millions going east from other mining states that invest as much in automobiles in proportion as california and the hundreds of millions sent east annually for other commodities shows that the east is contributing but little toward the development of the mines of the west as compared to what the west sends to the east the proportion is infinitesimal and the fact remains that western mines are really financed by western men so that even though the west goes to the east for money with which to help develop its mining and oil resources it is only asking that a fraction of the vast amount that is annually going from the west to the east be returned to the west for investment in undertakings that are promoted and built up to the advantage of the entire country in other words the west is not a financial beggar at the door of the easterner and it is perfectly proper and legitimate to seek the aid of those capable of building up western enterprise and particularly when it gives an opportunity of returns comparable with those in any other lines of industry further along in his article mr nenzel severely criticises criticizes a portion of the western press and hits the blue sky laws as follows some of our leading newspapers on the coast boldly announce that they will not print advertisements of mining and oil companies and on the same page you will find german bonds and german marks advertised as a good investment can you beat it and they proclaim that they are one hundred per cent american and for the up building of the west first last and all the time Is it any wonder then that we must ask the east cast for funds to develop our western mineral resources when several states particularly discriminate against mining and oil development by passing so called blue sky laws that block the making of investments la is there any wonder that the coffers of the east are swelled to capacity with wealth when the west pours it in and the east passes laws that prohibit it from coming back where must the finances come from certainly where the money has gone is the place to look for it the only real exception that the mining review cares to take to mr Nen argument is that relating to the passage and operation of the blue sky laws they certainly never were conceived and promulgated with the idea of discriminating against legitimate mining investments nor legitimate oil promotions and investments it we are able to correctly diagnose the purpose of the framers of most of these blue bine sky laws it has been to safeguard investments and clean out the gamblers who seek only to get the money of the suckers in most cases we believe the laws complained of by our friend mr nenzel do much more good than harm it is admitted that they frequently spoil speculative propositions ions deserving of recognition and which frequently particularly in metal mining ventures turn out well but we fail to see that these laws prohibit money coming coining west from the east for the development of legitimate mining enterprises on a legitimate basis most of them demand that the promoter should have something more than a map of a mining camp with some of the claims marked in red as the basis on which to organize a company W with ith a capital of oooo fully paid and no before he goes ea east s t or west or north or south for operating funds I 1 in other words the objectionable laws seem to ba have been designed with a purpose of compelling compel liEg promoters to give speculators and investors investor lea a run for their money mr nenzel has some pretty good positions ions of his own the blue eskyn sky laws ought to work as a protection t to 0 him and those who join with him in the de develops v of his enterprises |