Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1913-05-12

West. The man selling eoSus bonds
to the gullible mill hand and farmer
and dweller Of the city will find it
prcttH difficult 10 ply his trade, The
act will regulate the bqsinesS "a Geal-
ing i'll al securities.
The Kansas Law.
only two years ago The famous
! Kansas blue Sky" luse Haa pass
! The need of a similar i9# in al the
states has been m@de apparent and
23 of them have adopted measures OF
some kind. The original bin had it,
inception in the mind Of J. y. Dolly,
/ bank commissioner Of the state Oh
Kansas, several years ago. Friends
WTote to him about certain .seeuri-
Ties they had bought. He gave al
eice. Friends of friends wrote, and
hc did the same thing. Soon he was
deluged with letters and he always re-
Piled He made il publicly known that
he would cheerfully give advice TO
any one at any time, and his Offer @as
taken up.
Commissioner Dolly learned many
things. He found out that the pco-
Die in Kansas were being stung fi&h
and left MANY of them did not Sc L
his advice until they had aifeaaf
squandered their money upon bogus
bonds or unsafe securities.
So widespread was the complaint
that resulted from the discovery ihat
hundreds of people had been swthdie'
that the first blue sky law Vas pre-
scented to the Legislature OF hahhis
two years ago. 1t went through, bct
not without opposition. II Vas a Sc
we're Law, a very severe one II %a9
SO hard that it even empowered the
commissioner to inquire into the pfl-
waite affairs of bond brokers and stock
sellers. 1t was regarded as a httie
too stringent and has fallen By tn
Mayside somewhat.
Arizona has passed law Identical
to that of Kansas. The oregon Les
islattre also passed one. but 1t was
defeated by the referendum III com
mon with Il bunch of othrf measures
for the voters had too many OF them
upon which to vote.
B.a4en in Bay State.
At the last session Of the LeSls!2-
turc in Massachusetts, three blue
sky laws were put in, hut they "et'
beaten. \ commission MAS appoint
cd TO loo, into the matter and lheF
reporte,i only II short time ago that
bin oueht to be passed. Two weeks
ago, the H;cw Yerk Legislature passed
,ts ..nlne- Ky law and ii will so into
effect thdfe" a.,
ednatar Richardson has worked
hard an! long upon his measure,
has been written and Rewritten ahtH /
il is now thoroughly satisfactory III
et,t, mart of its workings 1t Is
.,aod clean law one that is not too Sc
we're and ono that will work for the
protection of the people Of the State.
The title of the Maine measure is
An act to regulate the business oil
dealing in securities.
A Dealer Defined
lust who a dealer is the person VINO
comes under the pfoViSIl;oi'S S o. ~
section finder tins act ,I af 49,
dealer shall mean any individual, part
.ta,5in" in th~ selling or offering for sale
~ Sl"c,,fities except to, or through inc
medium of or us agent or Sdiestl4H ~
a registered dealer. But saies hla9 itn ~
az i'm h444tlf Of I; vendor i'll the ordinary
course of bona fde personal ihVestment,
sl,au uof constitute such vendor, OF tite
agent OF Such N&ilubl' II n.y.
engaged either permanently OF tGhaP'ii =,
=arilV in selling securities, a dealer N
securities Nor shall the offer ~ or So
nf its own securities by an association
ar "A corporation to ITS own meilptis %
ockhoIders constitute such ASSOCIATION
ar CORPORATION 4 dealer in securities,
What ssecuritieS" are Is defined Wt,t
..tti.if cIearnrsS and completeness III the i
latter mart of the same section ;,
..'rhe fern securities shall lhclude ai
stocks bonds debentures or certificates
Of narticipatiun. and all other forms or
securities eXctpt that it shall not be hetu
To include commercial paper or other 81
denct OF debt not running more tHill
,,ins months. or notes legal for purchase
Lv savings hants under the statutes OF
any New England state or notes secuftt |
nv mortgage OF real estate in TINS state. (!
ar to the shares of loan ana hulidlli5 :
RESERVATIONS organized under the LAWS OIL I
the state of Maine. HI. =,
No dealer in securities, according 10 |
the act l. allowed to sell, or make over |
#flifes for sale in,anN way unless Ike is
registered dealer. In order to be regis
tered be must file written application
Win the bank commissioner with a Zee OF
So In this application, he must give
every detail about the firm or person
whom he represents as Wei as hulnogf
Of facts about himself. Every non-fesi-
dent dealer must file power OF attof-
Hev urevocable. properly authorized,
and with satisfactory certificates or
other evidence OF authorization. appoint
ing the commissioner agent Tor the ser
vice of legal process upon the dealer III
any action IN the courts of TINS state,
based upon or arising in any aeuoh III