The Detroit times. [volume] (Detroit, Mich.) 1903-1920, 1912-12-13
BLUE SKY" BILL
WILL BE PUSHED
IN LEGISLATURE
Rep. Copley to Work for Law to
Protect Public From
Stock Swindlers
WILL, MODEL MEASURE
ON KANSAS STATUTE
Chief Provision is That Banking
Commissioner Investigate
New Companies

blue sky" hill will be introduced
in the coming session of the legislG-
ture by Rep. A Ward Copley, of De-
troit.
The blue sky" bill has nothing TO
do with airsnlps, nor with smoke pre-
vention, nor with regulation OF the
weather. nor the building OF sky-scrap-
ers, nor with 'biuebirds for happi-
ness IL IS intended for the gray
skies OF winter as we'll as for the
clear skies of summer. A blue sky"
bill Is ne which attempts to prevent
the public from being swindled By
Fraudulent stock companies. IL puts
check on the sale OF stock OF cor
porations whose assets are as intang-
ibie as the clear heavens OF summer
In other words. companies which have
nothing but blue sky TO sell. but
which represent that they are about
TO earn enormous wealth for their
stockholders.
Rep. Cooley will model hfs bill az
ter the law passed by the Kansas leg.
islsture Ct 1911. Kansas Is the only
state which has provided protection
for It's people from interruptions pro-
moters AMI get.rich-Quick stock
swlndlers, whose only object il 10
get hard cash In exchange for beauti.
fully-engraved stock certificates OF no
value except as works OF art.
The Kansas law provides:
The true financial condition OF the
partnership or corporiVon whose
stock IL IT, be sold within the state
must be registered with the state
banking Commissioner. Such state
ment must be rendered every six
months-at the close OF business.
June 30 and Dec. 81 and at any other
time that the commissioner shall see
III TO demand II
Every company must send IN n
statement OF the plan on which II
proposes tn transact business. The
statement % financial condition must
be itemiZed In amount OF property
and amount OF liabilities.
The banking commissioner must In
vestigate the company. II the bust
ness Is far and promises a fair re-
turn on the securities offered for sale
the commissioner must Issue a state
ment permitting the compeny TO dr
business in the state. This state
ment. the law provides. In no wise rec
ommends me company's securities "a
investors.
Agents of a coryanV, appointed II
cen stock. must register with the
! banking commissioner.
II tho oUmmissic ner does not be
/ lieve that the comnany Is fair in is
/ intentions. or thinks that its assets
are not suHcient. he cuu refuse Il 0
perrit ~ soll stock in Kansas.
Any perFon who sells stock with
ont tho authority OF the BARI com
missioner, Is inole 10 a fine OF tl0f
IN s5.00O. or Imprisonment for 81
davs or both.
II am trying 10 End out whether IN,
/ Kansas law prevents a sale OF a smal
anIoun. OF stock by one srockholder tC
another saws Mr.. Copley. II don't
want law which will prevent trans
potion OF that nature. The object o
1 the bill it 60 stop the swinhling oil
the people OF Michigan by companies
ORGANIZED 90 defraud them.
Il believe the next legislature will
enact great deal OF progressive leg
islation. As for the woman suffrage
amendment, I doubt II there will be
much serious objection 20 It's resub
mission. II should go through with
! greater ease than before, II size uI
the membership OF the legislature &C
/ curately."