The Duluth rip-saw. [volume] (Duluth, Minn.) 1917-19??, 1917-08-04

visitor to the office OF Duluth
curb stock broker.
watch me turn trick" was the
answer.
Calling up a client on the tele-
phone, the stock broker mentioned
certain copper stock, roundly
abused the officers of the company
and then advised the man at the
other end of the wire to sell before
the stock went to nothing. Fright
ened and discouraged as a result OF
the assault over the wire, the poor
sucker put in an order to sell his
200 shares. go
"Have you got customer for
that stock?" queried the caller.
eyes," was the answer. GIVE got
a fool woman I can stick on that lot
Of stock. Watch me turn a trick on
the other end" .''',.
Suiting his action to his words, the
stock-twister called up a woman eli
ent in the East End and, over the
wire, boosted the company, its man.
agement and said all kinds of nice
things about the mine. In a, few
moments, the woman was so en-
Unused that she gave an order to
buy.
That's the way! Catch 'em going
and coming!" triumphantly ex-
claimed the broker to the visitor who
thought business swas very slow in
that office.
The slippery, scheming, con-
scienceless broker had, in a few mo-
ments, made a commission of $24
from the seller and one of similar
amount from the buyer-$48 for
ten minutes of dirty work.
Where, when and how can any
"Blue Sky Law" check, regulate or
hinder such brokerage methods as
that? No such law has yet been
invented. The penitentiary now and
then opens up it's doors to men who
employ such methods, but they usu-
ally are smooth enough to get away
with even worse stunts than that.
Minnesota now has a "Blue Sky
Law" thanks to the last legislature,
which killed measures of more vital
Importance, in the opinion of the
Rip-saw.
Promotions and stock sales in
Minnesota now are regulated by the
Minnesota Securities Commission.
This embraces state public Examiner
Andrew E. Fritz, chairman, attor-
ney general Lyndon A. Smith and
state insurance commissioner John
SanbOrn.
This State Securities Commission
has the right to appoint secretary
at a salary not exceeding $4,000 a
year, who, when acting for the COM
mission, shall have equal power and
authority The commission, of
course, has offices in the capitol
building.
The new blue sky law terms any
person, firm, co-pOrtnership, corpora
ton, company or association, whether
incorporated or not, as an invest
ment company" A broker is termed
a dealer" .-.:..-....
ANY investment company" that
desires to sell stock, bonds or in
vestment contracts in Minnesota,
must secure license for which a
fee of $25 is asked. An "invest-
ment company" may have agents,
each of whom must be registered
with the commission and pay fee of
SO each.
A further fee of one-tenth of one
per cent-one mills charged on
the face of the quantity of stock Of
fered for sale in the state but this
fee, in no case, shall be less than
SO or more than 500.
There is ample red tape as to In
formation to be filed with the COM
mission, including name Of the stock
to be sold, business address and resi-
dence of the company issuing the
stock and the general character of
the security offered. The commission
has power to exact details that, in
many cases, a company does not sup
ply all its stockholders.
The commission has power, even If
It does not follow the policy, of re-
During information as to honesty and
good faith of a dealer, broker, in
other words.
X ,
Of course there are exemptions Of
stocks and other securities coming
within the control of this commits
sion. Cooperative creameries, cheese
factories and rural telephone lines
not exceeding $4,000 in capitaliza-
ton, and insurance companies COM
ing under control Of the commits
sioner Of insurace, are exempted,
either because of the farmer vote or
because other acts quite well regu-
late such undertakings.
In brief, mining, manufacturing,
oil, and industrial stocks and bonds
come especially under the control Of
this commission. The red tape and
fees are likely to prove burdens to
small undertakings, such as little
company that wishes to explore forty
acres of iron land and desires CO.
operation of the public through sale
Of stock or bonds.
The big companies and brokers
have money, lawyers and clerks to
handle the red tape as we'll as fees.
The admission of brokers, companies,
and agents under this act must be
highly perfunctory but, if complaint
is made the commission has great