Free trader-journal. (Ottawa, Ill.) 1916-1920, 1917-12-17
STATES BLUE SKY
LAW EFFECTIVE 0 N
JANUARY 1ST NEXT
RIGID ENACTMENT PLACES a
STRONG BARRIER AGAINST THE
SALES OF STOCKS AND BONDS
UNLESS LICENSED sY SECRE
TARY EMMERSON.

Springfield Dec. 17.-lllinois' Blu,
Sky" law becomesN effective Ianuar,
|, 1873. 1t is designed to regulate the
sale of stocks, bonds. debentures ant
other securities and to prevent fraut
in the disposition thereof A state
ment explaining the new law was is
sued today by Secretary of State l.
l.. Emerson II follows:
The act commonly denomnate(
the Blue Sky" law. becomes eflec
tive January /. 1918 The purpose OF
this act is to regulate the sale ot
stocks, bonds. debentures and Other
securities and to prevent fraud in the
disposition thereof Under the pro
visions of this law. no dealer. agent
salesman, individual, corporation, as
ISOLATION, company. whether in cor
porated or unincorporated will be
permitted 10 sell invite offers for, OF
inquiries about any stocks. bonds, de
bentures or other securities by per
sonal solicitation. letters. circulars or
otherwise, without being first H.
censed so to do by the secretary OF
state
ANY persons violating the provi
sions of the act will be subject to a
fine Of not less than sl00 nor more
than 81 600 and is subject to impris.
onment in the county Jail for not less
than one year or to both the fine and
Imprisonment, in the discretion of the
court All sales or contracts for the
sale OF any securities made in con
prevention of the provisions of this
act are absolutely void, but this does
not relieve the person or persons dis
posing of such securities from Grim.
inal liability
THE sale of the following securi.
ties is excepted from the operation
of the act;
TO corporation, public sinking
fund trustee, licensee under the act.
bonds of municipalities. governments
or governmental agencies or other
securities. securities published in tab.
uated market reports of daily news
papers of general circulation for not
less Than one year preceding the sale
therof bonds or notes secured by first
mortgage lien upon real estate. stocks.
notes and securities pledged TO ma.
ti0nal banks and trust companies,
stock of insurance companies organ,
ICED or under the supervision of de.
partment of trade and commerce
stock in building and loan associa-
lions. bonds, stock and other securi.
ties OF quasi public corporations. the
issuance of which securities is regu-
lated by public service commissions
stocks. bonds or other securities sold
at judicial. executors, administrator
or trustees in bankruptcy's sale.
"All securities listed or dealt in M.
on any organized stock exchange an
proved therefor by the secretary of
state, are exempted from the opera
ton of the act.
Comm ssioners licensed to oper
books OF subscription to the CAPITA
stock of proposed corporation to be
organized under the laws of Illinois
are not required to be licensed unde,
the act in order to take subscription
TO the capital stock of the proposed
corporation.
ANY corporation, copartnership
individual, association or companv
whether incorporated or unincorpor
aled, or any other owner. is not per
mltted to dispose Of its stock in iii
nois' where the disposition of sucf
stock Is in the course of continued
or repeated transaction, without first
complying with the provisions of the
&C..
Before any dealer, agent or broker
can be licensed to sell stock. il is
necessary for the company issuing the
stocks. bonds or other securities r.
qualify under the act and designate