The Washington times., 1913-04-18
BLUE SKYLAW FOR
DISTRICT IS OFFERED
New York Banker Congressman
Would Have Supervision of
Stock and Bond Sales.

Congressman Luther w. Mott, a Re
publican. of New York. has introduced
a bill to regulate the sale of stocks.
bonds. and other securities in the Dis
trict of Columbia and to change the
local insurance department to a depart
ment of insurance and investments,
with authority to supervise the market
ing Of certain securities in the District.
Mr.. Mott is an Oswego banker and was
president of the New York State Bank
ers' Association in 1910 and 1911.
Government. State. Territory. foreign.
county, and municipal bonds and securi-
ties of ''quasi-public'' corporations the
issue of whose securities is regulated
by public service commission. or those
approved as a legal investment for saw
ings banks, are exempted from the pro-
visions of the act
The bill provides that no dealer shall
sell or offer for sale in the District of
Columbia any security not exempted
until he has filed with the superinten-
dent of insurance and investments a
statement under oath showing the name
and place of business of such dealer,
and the names. residences, and business
addresses of all persons interested as
principals, officer, directors, or trustees,
including the name. residence, and busi-
ness address of an agent residing in the
District of Columbia, IL any.
The bill also provides:
That by an order directed to any
such dealer, the superintendent of In
surance and investments may require
such dealer, whenever he shall offer
any security or securities in the Dis
ri n
ers or banks, to file with him state
ment showing the security or securi-
ties as offered, and the superintendent
may by such order require such dealer
to mail to him, as soon as any copies
are SO mailed or shown 10 any pros
pective purchaser in the District of CO.
fumbia, a copy of all printed or other
wise redupiicated circulars of any Sc
curity or securities the dealer shall
offer for sale in the District of Column
ments thereon inserted In any news
paper, magazine, or other periodica!
published in the District of Columbia.
The superintendent OF insurance and in
vestments may limit ouch an order to
securities Of any particular class or
character of which he may deem such
necessary.
THAT the superintendent of insurance
and investments may at any time order
a dealer to file with him evidence. in
Guiding an official statement of assets
and earnings or other information in
relation to any security the dealer Is
for sale, or inviting offers for.
except to other dealers or banks. or
In newspapers, magazines. or
other periodicals published in the Dis
trict Of Columbia, sufficient to show
that the offering or invitation has been
made, and is being made, honestly and
in good faith. and with disclosure OF
pertinent facts sufficient TO enable In
tending purchasers to form a reason
able and accurate Judgment Of the value
Of the security. Unless such evidence
ID filed and is sufficient, as stated. the
of insurance and invest
lnents may order the dealer not to offer
he security for sale or otherwise adver-
Use II in such publications or circulari.e
I in the District Of Columbia"
The penalty attached to willful viola
ton Of the act is a fine of no. more
han 5000 and. II the violation is with
intent to defraud. by Imprisonment
rom six months to two years.
There was a fair volume of trading
N the Washington Stock Exchange
oday. the bond dealing amounting TO |
$500 and the number Of shares of
fock to 237. Another block Of 100 |
hares of Washington Railway, COM |
nome out at 80. The largest Of |
he bond t5ansassiGns 9s o In s. Po
[ 100A. Mergenthaler was softer, |
CLING from 219 down to 21sH Fifty |
hares were sold on the scale down. |
'hirty mine shares of Second National |
sank sold on an advance from 1924
0 162&. Only twenty-five shares OF
ay and that was a fraction under the
rff q Of yeaterday