Richmond times-dispatch. [volume] (Richmond, Va.) 1914-current, 1918-09-16
SCRAPS or PAPER GIVEN
f!0R Government BONDS
Nppntatn Business Man Apparently
1wtrdled of 81, 800 by Bluc-Sky
Stock Salesman.
OTHERS BELIEVED VICTIMS
C0eporstfon Commission, However
Strives to Minimize Such Cases
Through Giving Wtde Publicity to
Protective Features Of New Law.

II
Is Through Giving Wide Publicity to
Protective Features Of New Law.
Apropos tho b1ue-sky law adopted by
tho last General Assembly, 20 show
that. In spite OF the efforts OF the
state Corporation Commission to pro-
teet the public from wildcat stock
sAlesmen and sometimes thieves the
law has not yet registered a good
take" and immunity. an attorney US
lowing tale His name and that OF
the victim are necessarily withheld
porting their cases. In this manner
a weil-to-do business man of hard
financial sense was taken IN.
stranger drove an automobile up GO
mans gate and stopped. The strang-
er got out and tinkered with his ma
was wrong with it. The business man
OF means being Hospitality inclined
walked down from his house to lend
invited the Stranger to lunch In BRIEF
he story is this: The stranger ate soi at
the mans table, sa, areSnd h an n,r nGs5
away 1880 worth OF Liberty bonds
leaving nothing in the world IN the
hands OF the man but a IHHse,p, n 1or
titious name. and a promise that
certain numbeT CT shares or stock
J. ' is ne ssHe IN" 10 say that the stock
never came, for there is said TO pc no
such corporation in existence 1t is
Der Of other sullibie people on his
tour Of the State.
COMMIsSIoN ISSUES PERMITS
TO ,LEGITINATE Statesmen
It was stated in the Corporation
Commission that, in such tase as
this. had the man, who never would
have trusted man OF his acquaint-
ance, so much as asked the salesman
show his permit from the State Cor
poration Comm tssioE. he would not
have fallen Glen victim; co,,n,ss,or
- ~ agent OF everye concern selling
stock to show. that the commission
adverse finding. Until an adverse
finding has been made tie concern concern. II
of f ths SiuelsE e law. avn has G risnt TO
sell stock in the State. The commits
sion does not guarantee that any CON
is q safe Investment It merely stops
from activity those concerns that II
discovers TO be fraudulent and those
registering and disclosing tho facts of
their scheme. The Corporation Com
mission never releases the right TO
investigate any security or stock con-
Germ any more than it Endorses tho
ones that it has not felt warranted in
finding fraudulent or dishonest. These
permit from the Commission.
The publicity campaign OF the com.
mission to warn people of sharks"
and to advise them OF Ine status Of Sc
curities that comply with the blue-sky
law and those that do not has re-
suited in considerable good, Judging
: from communications to members or
j.. the commission man from
mote section OF the State wrote re-
number of times he had been taken
IN" He stated that ne was at last
reJoiced that the State WAS after tina,
tribe OF men who fatten on the cred
ulous, like himself.
THOUSANDS FALL VICTIM
TO UNSCRCPULOGS MEN
statement recently issued by the
state Corporation Commission told the
hl"In years past thousands of people
OF this Commonwealth have been made
the innocent victims or INSCRIPTIONS
advantage Of native honesty, credulity
and unfamiliarity with financial mat
ters to dispose Of stock and bonas
actually not worth the paper upon
which they were printed.
Under the provisions OF the blue
! sky law every corporation. stock sales
man or promoter. whether within or
without this State. must satisfy the
State Corporation Commission OF the
good character OF the enterprise, whose
: such stock can lawfully be offered to
more than t~en:y-five persons in this
State. Tho Information required to
be furnished is most complete and,
vhiIe tho State Corporation Commits
sion does not undertake 10 pass upon
the actual monetary value OF such
stock, no securities will be permitted
TO be offered for sale until the com
missio, is convinced that tna enterprise
is being conducted in good faith and
THAI Its agents or stock statesmen are
trustworthy persons
Amy promoter who offers specula-
tive securities for sale ~ more than
twenty-five person.. in this State with
Corporation Commission with the in
formation required by the isw Is guilty
OF E1iedemeanor and is liable TO
fine or Imprisonment, or both. Any
any false statement. 10 the State Cor
porattor Commission or 20 any person
authorized 20 examine mo :he afair3
of such persons. subject 10 The provis-
IONS Of tho blue'sxy law, shall be
deemed guilty Of felony.
COMMISSION SHOULD DE TOLD
WHEN LAW Is NOT OBEYED
"whenever any stock or other tyne
OF security is offered for sale in this
State the person 10 whom il is offered
should first ascertain whether such Sc
{ curities come within the definition Of
( onering such securities for sale
:. should be requested 10 show his
certificate from the State Corpor-
4 authority. the corporation omrn ss on
should al once be notified and furnished
with full particulars and the Com
monwealth's attorney Of the county or
city In which such stock is so offered
$