Adam M. Duncan, Salt Lake City, Utah, Uranium Oral History Project

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ADAM M. DUNCAN dollars was not to be considered in your net capital, so if you had a million dollars worth of penny stocks, it would not help you in computing your net capital. So it made it very difficult for brokers to sell them, to position them to make a market in penny stocks. As a result the shell game came about. This is current, this is happening today, people are calling all the time. There's a doctor in Northern California that has some nursing homes that wants to put them into a shell. There was a fellow in Northern California that has a bunch of franchises for food stores and wants them in a shell. A shell corporation is, for example, an old mining company which had 15 hundred stockholders for example, and no assets; you put assets in, revive the charter, put letters out to brokers and to your stockholders and presumably the stock will then jump in and rise precipitously. The interesting thing is some of the old ones El Dorado Mining, Gold Seal, just many, many of them, never were over two or three cents, now with nothing really in them are now trading in dollars. Now we are not playing games any more, this now becomes a very real basis for fraud and now some these we have litigated. Here was one, it wasn't a mining company but it was one that was formed around here, Dumont Corporation. That was a contraction of two men's names, 25