wummmwmwim -iump- Nr-,
Wednesday; Julv 13, 1904
THh bUMPTER MINhR
ANTI-FRAUD LAW
OF WASHINGTON
Promoters Believe that
Business has Been En
couraged by it.
Washington tins boon one of tho
first sttitos to onnct legislation do
signed especially to propect wining
investors from tbo operations of
fraudulout echemors, says a Spokane
dispatch. It bus beeu moro than a
year since the legislntnro passed tbo
law to subject promoters who mis
represented the fuels concerning thoir
propositions to a peualty, and it is
ii tereatiug at this timo to ucto that
not oue caso has yot. beou prosecuted
under tbo statute. This ciroumstuueo
might loud to tbo opinion either that
tbo authorities were lux in enforcing
the law or that the prorlsious of it
wore not such us to roaoh thoso who
desired to perpotrato fraud, but tho
-fathor of tho act expresses tho opin
ion that it Is in ovory way adequate
.uud that it has boon olfootive in rais
ing tho staudard of mining promo
tion operations in this state. Ho
any a that thoso who might bo prouo
to misrepresent thoir propositions
4vo dotorred from so doing by tho
now statute '
However this may bo, tho law is a
good one, so far as it goes, and
Washington promoters who have felt
that tbo industry is injured by
fraudulent operators declare that it
serves as a protectiou to them aud
enables them to work without fear of
suspicion when it comes to the
statements which they make to the
public. Some of them go so far as to
quote the law to their clients as an
indication that they could not
afford to misrepresent,
were disposed to do so.
the fact that so many
even If tboy
In view of
miuiug in-
vestors dwell in the east and have to
depend in great measure upon Infor
mation wbioh they receive from tho
west ,such a law gives them greater
confidence in the iuvestmeut business.
It is tho general opinion here among
those who have thought of the matter
that other operators in other states
would do well to urge upou their
legislatures the enactment of similar
laws.
Tho bill which has boon euaoted
iuto law by the etato of Washiugtou
was introduced iuto tho legislature
by Joseph Liudsloy, of Spokane,
Jiuuary 20, 1003, its purpose boiug
to chock illegitimate deuliugs iu
wiuiug stocks.
It is said to bo one
of tho most
sevoro measures of
passed by any state
investor who has
this nature ovor
and pormits tho
beeu dofruudod
through false representations to pros
ecute tho perpetrator iu tho criminal
courts. The act is as follews:
Seotiou 1. Auy superintondout,
director, secretary, mauuger, agont
or other officer of auy corporation
formed or existing under the Jaws of
'this Btate, or transacting business iu
this state, and auy person pretending
or holding himself out as such super
intendent, director, secretary, mana
ger, agent or other officer, who shall
willfully subscribe, sign, endorse,
verify or other wise assent to the
publication, either generally or
privately, to the stockholders or to
'other persona dsaliog with such cor-
jporatious. or its stock, any wilfully
uutruo or wilfully fraudulently ex
aggerated report, prospectus, account,
statomout of operations, values, busi
ness profits expenditure?, or pros-
peots, or other paper or documeut in
'tended to produce or give, or having
a toudoucy to prnduco or give, to tho
shares of stock iu such corporation
,h groator value than ttioy really
j possess, or with tho intention of do
jfrauding any particular tieroou or
porsous, or tho public or persons
gouorully, shall be doomed guiity of
any ofFouse agaiust tho laws of tho
state of Washington, uud upon con
viction thereof, shall bo puuished by
imprisonment iu Pjo penitentiary or
county jail for not morn than live
yoars; or by a fine not exceeding live
thousuud dollars, or both.
Chapter 03, Luws of 1001), Pugo
141.
At tho timo of tho passage of tho
bill promoters all ovor tho stato woro
anxious to know tho result of its
adoption. As fur us tho state records
gn tboro bus beou no result, for not
ouo caso beou tried undor that act.
it bus hud its oirect, however, and
promoters gonerullly say that thoro
has been less illegitimate business
done in Washington since its passage
than ovor before Tho peualty is
socoro aud thoro is a torror in such
punishment, lie fore tho passage of
tho bill tho stockholders who hud In
vested his money in worthless stock,
for tho bouoflt of tho promoter, hud
only a civil action to rocovor his
money.
The bill is comprehensive aud
covers almost ovory method of fraud
ulent doaliug In atockH. It was
framod for tho express purposo of
stopping wildcat jobB. Before tho
passago of tho bill many promoters
made mouoy by deftauding the in
vestors with oxtravagant circulars and
prospectuses, but that Is seldom
attempted now, as the law is feared.
GtTTING A CRtW
TOGETHER FOR GEM
Harry Hendryx uamo back from
Baker City today where he was
looking after tbo details of Oom
operations. This property, as stated,
baa been takou over by tho Uoisor
Hendryx people for eastorn clients.
Operations are to bo started at ouco.
C. S. McLaiu left hero yosteray to
look after the overhauling aud im
mediate oporatiou of the machinory,
uud floury Dodson, formerly of the
Tabor Fraction aud tho Bonanza is
gettiug a crew of men togothor to
assume tho suporiuteudency of tho
initio, Rosumptlou uudor tho now
management will take pluco at ouco.
Tho (lorn is an old property located
iu tho Sparta district.
0. R. & N. SUMMER BOOK.
Tho handsome 1004 summer book,
"Routful Recreation Resorts, " issued
by tho passenger doparteut of tho
Oregou Railroad and Navigation com
pauy, is just out. It tolls all about
the fliimmoring plaecs of the Columbia
river valley a brief description of
tho trips up uud down the Columbia
rivor, to tho mountains, beachos,
inland resorts aud fountains of heal
ing, where they are and how to reach
them. The book has a special de
signed front cover, printed in two
colore, and the inside pages are
nplendidly illustrated by ooslty aud
beautiful half-tones. A copy of this
publication may be obtained by
sending two cents in stamps to A.L.
Craig, general Passenger agent of the
Oregon Railroad and Navigation
company, Portland. .'
RED BOY WILL SOON
BE OPERATING AGAIN
Messrs. English and
Will
Visit the Property
Tomorrow.
John (1. English, of Danville,
Illinois, ouo of the heavy stock
holders iu the Red Boy, and E. J.
Godfrey, of Portland, former mana
ger of the company, arrived in town
this morning from Baker City, where
tho adjustment difficulties of tho
company which have been in progress
fur some timo, dually reached a con
clusion. In this regard tho Demo
crat of this morning says:
"In the circuit court lust evening
there was present before Judge Eakin
tho leading stockholders, attorneys
and Recoivoi John Thomson iu tho
matter of O. O. Benson agaiust the
Red Boy Consolidated (.5 old Mines
company. Tho occasion was tho
presentation of Receiver Thomson of
his report of monies recolved and
oxpoudod. Ho showed that ho had
received all told 884,007.00 and that
ho had paid out for claims allowed
07,074.70 leaving a balance iu Ills
hands of 17,423.84. Tho recoivoi
asked for au allowance for his services
AN ELEGANT LINE OF
SAMPLES OF
Men'sTailored Suits
From the Well Known House of
WANNAMAKER ft BROWN
OF PHILADELPHIA
AND FRED KAUFFMAN
THE AMERICAN TAILOR OF
CHICAGO
A SURE FIT AND PERFECT SATIS
FACTION GUARANTEED
LADIES' TAILORED SUITS
ORDERS A SPECIALTY
See tho Now Lino of Samples ami all
tho Styles of the Season at my ollloo.
Jesso Hobson
HOTEL SUMPTER
I
Bank
of
Sumpter
Transacts
General
Banking
Business.
Interest Paid on Time
Deposits
Satety Deposit Vaults
Godfrey in Town and
and au order for tho disposition of
tho balance of tho mouoy. Tho court
took tho matter under udvlsomont. "
Mr. English today visited tho
Amazon, a property which ho owns in
tho Cracker Crock district, aud to
morrow ho aud Mr. (Jodrfoy will take
a trip to tho Red Boy. Regarding tho
resumption of tho latter, Mr. English
says :
"1 A'ill remain in tho district only
a few days longer. 1 will go to
Chicago where it la probable a re
organization of tho company will at
ouco no eirectod, and plans for future
oneratlon laid. 1 am nut in a
position to say just when work will
Do resumed, but matters are now
shaping themselves rapidly In this
direction."
At tho Chicago mooting tho opera
tion aud management policies will bo
settled, according to Mr. English,
aud a short time thereafter will see
this old aud well known property
working again.
3
THE
HOTEL
SUMPTER
I S TH E
BEST IN
EASTERN OREGON
STLAM HEAT
ELECTRIC LIGHT
TELEPHONE
TELEGRAPH
ROOMS WITH .BATH
FREE BUS TO ALL TRAINS
RATES
$2.00 to $3.50 a Day 858
B. W. LEVENS
PROPRIETOR
SfSasssassssssKS.
GEO. E. ALLEN ?
JUSTICE OF THE PEACE
AND NOTARY PUBLIC
All kinda of conveyancing done.
Collection! promptly made. Real
Ematu houirht aud Hold. Mouoy
loaned. MiuoH, Mining Stocks
and ProHpecta nought aud Hold.
Titled to all property looked after
and made uafe.
OFFICE ON CENTER STREET J
NEAR POSTOFFICE 2
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