The San Francisco call., 1905-01-19
| WILL PROTECT
THE INVESTORS
Atkinson Introduces a Bill
in Assembly to Suppress
"Get-Rich- Quick" Concerns
SEVERE REGULATIONS
REGULATIONS
Corporations Coming Under
Provisions of Act Must
Make Deposit With State
Special Dispatch to Tn. Call.

SACRAMENTO, Jan. 1s.-Assembly-
man Thomas E. Atkinson of San Fran
cisco introduced in the House this
morning bill intended to suppress the
various grating corporations and
companies that are now gathering in
shekels from the unsophisticated. The
bill provides for the protection of in
vestors by deposits from the compa-
nieS and corporations coming under
the provisions of the act. The follow
ing portion of the act enumerates the
concerns affected by 1t:
Every corporation. heretofore or hereafter
formed under the laws of this State the
laws of any other State. Territory or foreign
country. and every person. firm association
operating under any title name or designa-
ton other than such shall disclose to the
public the full name OF each and all the part
ners or associates interested therein, transact
Ing business in this State as a bond. bond in
vestment debenture, diamond. tontine, indem-
nifty, guaranty or benefit company, or any
company or association formed for or with
the idea of raising its circulating capital. In
yestment or operating fund or funds. the
equivalent thereof, by the sale. or disposal OF
tihcates, contracts or other chooses In action.
or the bonds. debentures, investment certih-
Gates. contracts other chooses in action OF
any other person. firm, association or corpora
tion, and not licensed by nor under the super
vision of the Bank Commissioners, Building
and Loan Commissioners or Insurance Com
future transaction OF business in this State,
deposit with the State Treasurer the sum OF
ten thousand dollars
1t is also provided in the bill that all
the concerns enumerated shall file with
the Secretary of State. thirty days after
the close of the fiscal year. a detailed
statement, and shall pay fee of s25
for the first $50,O00 of capital and $50
for each additional $50, 900. All moneys
so collected shall go into the State
treasury and form fund to be known
as the tontine and debenture fund.
Assent blyman Atkinson, who Is an
expert accountant, has not forgotten
that craft in framing the bill AS a
further check on the illegal operations
of such of these concerns as may be
Of a, dubious nature the proposed act
contains the following: 4
Within thirty days after the filing OF any
such annual report by any such Incorporation.
person. firm association the Secretary Of
State shall designate some qualified disin-
terested public accountant to make full and
complete expert examination of the affairs and
business of such corporation. person. firm or
association and to report the result In writing
Such report shall be placed with the annual
spection during business hours. All expenses
of such expert examination including travel
ing and hotel expenses and per diem Of
not exceeding fifteen dollars for each day Of
six hours. shall be paid by the corporation,
person firm association so examined and
a duplicate of the bill of expenses shall ac-
company the report Of the public accountant.