The Richmond Virginian. (Richmond, Va.) 1910-1920, 1918-02-28
Emergency Bill Aims to Pre-
vent Sale Of Fake Securities
to investors
GET-RICH-QUICK
SCHEMES ARE HIT
HARD BY MEASURE
Floor Leader Willis Explains
Legitimate Enterprises VIII
Not Be Hurt-Corporation
Committee in Charge

The so called biuo~Shy Ia" PaEsSVN
BY the house yesterday by unanimous
vote, contains this emergency clause
In that the good people of this
state are being defrauded of large
sums of money b the sale to them OF
securities at inflated prices. an emer-
sency IL declared to exist, and this
act shall be in force from its pas
sage"
The bill now goes to the senate
whore it's passage Is assured ard VIII
become law upon being signed by the
governor.
r,.gr Leader Willis made forci-
bio sneech in favor Of the bill, on
Which he and Delegate Oziln had
sp"0t much time in preparing he
SAID;
4rnt promoters from rohbing the un-
s4xnecting. tbs Gulllhie. and the pee
PIE who naturally are not IN posi-
ton 10 know about what constitutes
good investment
1T IS a bin to prevent promoters
fscnl stealing tho Gard rncd money
~ the widows and the poor.
IL II hi1 70 provide tha1 The
nsonev raised from tho sale Of stock
rlust re applied 10 the purpose for
Which the stock as alleged 10 I've solo
~ {. is today promoters can sell
stoc> sateus.h'y tu- the purchase az
TICKETS to heaven and put the money
III tLeir pockets.
i .gn.o3yrs can sell stocr ostensi-
bl, H. hrild causrHay 10 the moon.
am st}l put tho money in their on
pc, kets.
DOES NOT kurt Honest Stocks
The bif. does no. affect any legiti
rtate business ent,. prise, ana = does
r5l even prslieit the selling OF stock
a. IL Is carried en- today. II mersly
peov4des that the facts shall be
k.osea. that the corporation commits
a4t.~ shall have Ihe power TO initiate
'ar investigation aad warn the peo~
~ ot {he fsaudlsuCy of these enter
pEiees
.ae chairman Of the corporation
c.a-nljssien ha yecited to me one In
glance alone where "a company issued
5000. 900 in these bogus securities
ana sold them TO The people OF the
state. and had she chairman possess
I'd the power 10 initiate legal inves-
tigation he could have prevented this
fraud by warning the public
I'VE might az wei call these things
nv their rightful ma me- these pro
r nters sinply steal this money. In
ny experience as n lawyer ] have mei
With many such cases, and the matter
reached such proportions during past
wear as to cause Governor Stuart to
5,.s,1e. a proelatraf ion warming the peo-
pie against these sharks.
a. a rule Slter a sucker is burnt,
he usually keeps his mouth shut, and
II there is a prospect OF being muicted
Tor further costs ne certainly will not
pursue the matter. and that is why II
&. essential that the power Of tnitis
t,r, --r,~stH.F Ne 1'~~eA with the cor
pcratfon commission.
.. sac. ..v Of authorship In
thig bill Mr. Ozlin. OF Lunenburg. and
myself have spent months on II. and II
hae been one ot the most difficult I'M
aertakings ever attempted in order TO
protect legitimate corporations and 70
provide means for preventing dis
s,ane~t o~~norations from defraudins
the people"
The other patrons of the measure
we're l.els gates E.3am. snow. Brewer
Hobbs and Easley
What the Btil Provides.
The bill provides that any one at
tempting TO promote speculative sc
surities must file with the corporation
commission before offering stock fol-
sale. either by advertising or person
nj solicitation. n copy of the securi'
ties to be promoted, "a statement o.
the assets and liabilities. copy o.
any mortgage or liens and an apprais
al or the property covered thereby
copy of any advertising matter
or prospectus to be used In selling
the stocks or securities must be filet
with the corporation commission.
The names, addresses and SELLING
territory In this state OF any agents h,
or through whom such securities ar
to be sold. likewise must be filed will
the corporation commission, togethe
with satisfactory evidence of their goo,
L character. and fee OF $500 Is charged
for the registration of such agent.
The names and address of the pro
motors, all partners, directors an'
trustees must likewise be filed.
Promoters Must File Plans
There shall be filed with the corpo
ration commission a statement show
ing In detail the plan on which tn
| enterprise Is to be conducted, with al
papers pertaining to the organiza, ion
a copy Of the charter and bylaws. AM
any othef information concerning tn
| promotion, its assets or the person
Interested therein. the commission
may require. for all OF which there 1
required a filing deed of s25.
Every foreign promoter must file
written consent. irrevocaoie. that &C
ton may be commenced against hin
in the proper courts OF any cbunty o
city In the state by the serving o
process on the secretary OF the com
monwealth.
Promotion stock shall have staanpe
on its face that fact so the purchase
will know just what ne 10 getting
Commission Shall Publish Findings
Ii the com mission finds no legal OBJ
lection TO the enterprise 1t shall not