Weekly journal-miner. [volume] (Prescott, Ariz.) 1908-1929, 1913-10-08
UNIQUE FINANCE
IS FROWNED UPON
CORPORATION Commission Refuses to AL
low SIS Stock Control Company
Talk of Recall

Legislature, approved May 18th,
1912, generally known as the "Blue
Sky" law.
The application is comprehensive,
giving in full detail the plan upon
which the Company propose to do
business, copies of all contracts
which it proposes to make with or
sell to its subscribers, an itemized
account OF its financial condition,
the amount of property owned by
it. its liabilities, and all other in
formation desired or requested by
the Commission.
Chapter 90, herein before referred
to, provides that every company or
corporation which shall sell or ne
gotiate for the sale of any stock,
bonds, or other securities of any
kind or character, other than bonds
of County, City, Town or School
District therein, shall make an ap-
plication 10 this Commission for an
order authorizing such sale, and II
the Commission, after an examina-
ton OF said application so filed,
shall find that said company is SOL
vent. that its articles of incorpora-
ton, constitution and bylaws, its
proposed plan OF business and pro-
J posed contracts provide for fair,
just and equitable plan for the trans
action OF its business, the Commits
sion shall issue to such company a
statement which will authorize the
sale of the securities mentioned IN
the application.
However, if the Commission shall
find from such investigation, that
the proposed plan of business, ar
ticles OF incorporation, etc, or con-
tracts contain any provisions that
are unfair, unjust, inequitable or OPP
pressive 10 any class of contributors,
it shall notify the Company OF its
! findings and il shall be unlawful
Tor such Company to do any fur
Their business until it shall so change
its articles OF incorporation, etc, as
10 satisfy the Commission that said
articles OF incorporation, plan or
business, bylaws, etc, provide for
fair, just and equitable plan OF
business.
Upon examination of the articles
of incorporation of the Rapid Tran
sit Company, we find the authorized
Capitalization TO be One Million ISL
100000 Dollars, divided into Two
Hundred Thousand 100000 shares
of stock OF the par value of Five
($5) Dollars each;
That said stock is divided into
One Hundred and Fifty Thousand
i (l50OOO) shares of preferred stock,
and Fifty Thousand 100000 shares
of common stock.
1t is further provided in said ar
ticles of incorporation that the pre-
ferred stock and holders thereof,
shall not participate or have any
voice in the policy, control or bust
ness methods and affairs OF the
company, and that said holders OF
preferred stock shall not be allowed
to vote al any meeting OF stock,
; holders.
Said articles OF incorporation fur
ther provide that the voting power
and the policy, control and conduc
Of the affairs OF this Company shat
be forever vested in the common
stock.
In the application of this Com
pany for permission to sell its cap
ital stock, it prays for authority :
sell Nineteen Thousand, Nine Hun
bred and Eighty-Five Q9,o85) share
J of It's preferred stock and but FIJI
teen Q5) shares of its commo
! stock, at par value.
II this method OF disposing OF u
4 | Capital >lbOh SlOulu iNNNiNN -
) sanction and approval OF this Cor
mission. il would mean that If SUI
cessful in the sale OF stock praye
? for, this Company would have i
sued and outstanding One Hundre
Thousand 100000 Dollars wort
of stock, with only Seventy-FiN
8 (55) Dollars worth OF said stoc
having voting power.
= Supposing such approval OF tn
: Commission to be obtained what
: anything would prevent the dispos
: of but Fifteen (Sl5) Dollars wort
y of common stock. However, in al
s event, the bald fact remains tn
" under the plan OF business presen
q ed Seventy-Five (a5) Dolla
u would have absolute manageme
Al