The Marietta journal. (Marietta, Ga.) 1918-1944, 1919-10-17
Why Oil Stock Sales Stopped.


Gently but it seems that halt has been called in the mat
ter This little story perhaps explains why in the best
way tell it.
On July Is of this year couple of farmers were sit
ting the office of Secretary of State McLendon in the
capitol building business with the secretary when the
dor opened and in walked large man with suitcase
and roll of papers in his hands
as this the secretary of States Officer" was the ques
ton he shot the occupants he threw his suit case
on the and his benign countenance the
little group
at is" replied Mr.. McLendon.
"Wel as l am in a hurry, hope you other gentlemen
will me- understand that it is necessary to get
certificate from the secretary of state in order to sell
stocks in Georgia, and have some stock to SELL"
'What sort Of stock?" asked Mr. McLendon.
"Oil stock and I've got proposition that will appeal
to you I am going to give the people for their
money"
eyes run for their money is about all people have
getting of your kind of stock for the last twenty
years. and they tired running and they
that you get for their before get their
money.
81 have in the brief two weeks of my encumbency of
ths office, occupied half my time in the investigation and
rejection of Blue Sky Stock selling propositions and
cannot afford to continue this therefore have prepared
sort of preliminary list of rules to be complied with be-
fore go any further into the matter For your con-
venence have had them printed in circular form. Take
this and tomorrow"
Three months later of the farmers asked Mr. Nc
Lendon ''Did that fellow back?" "Not yet"
the reply And of all the hundreds who have asked
for permits to sell oil stocks only two have
back"
Hearing this story called upon Mr. McLendon for
copy of the Blue Sky Stock rules, and give it here
with and commend to the officials of other states for
the protection of the people.
Blue Sky Rules in Relation Oil Companies
July 49, 1919.
The applicant for leave to sell stock in ay oil company
furnish the Secretary of State with the following
information preliminary start in the investigation of
the value of the stock to be offered to the people of
Georgia:
l. He must furnish copy of the charter of the com
2 copy of the law of the State in which the COM
pany incorporated.
g. The name, postofice address and occupation of
each of the original incorporators.
A. copy of the law of the State creating the corpo
ration and imposing taxes upon the corporation
s. The date of the organization of the company by
the corporators the opening of the books to SUBSCRIPTION
and the election of the officers by the stockholders and
the names and addresses of such first set of officers
g. The history of the corporate life OF the company
down to the date application is made for leave TO sell
stock in Georgia.
T. The original lease of land claimed to be leased by
s. Satisfactory evidence that the lessor owned in fee
simple the land claimed to be leased and satisfactory
ject the lien of mortgage or Judgment entorcloe
during the lifetime of the lease.
g. The amount paid the lessor Tor tne lease
10. The amount of money expended in prospecting
H. The nearest flowing we'll the point the leased
land where the boring is made for oil.
to sell stock the amount of stock sold in EACH and the
total amount of stock sold in such States.
IS. What States have refused to grant the company
leave to sell its stock. ,,
a. The name postofice address of the present clerk
of the court the county in which the leased land is
located A.,
tx The sworn statement from the treasurer of the
company showing the total amount OF corporate Iuhs
received and dsbursed by him. also showing the amount
of hand at the time of filing the application IN
this Office. , =, e AZ
president cashier in which the funds of the corpora
tion kept deposit :. o
IT, The name, postohce aoaress anu eHlei ~ be
ton of the present officers of the corporation ana ht
amount of the bond required of any of them and the
name of the surety of such bond.
18 Is the stock to be offered in Georgia treasury
+oc nroceeds from the sale of which would into the
treasury of the corporation 1t promotion STOCK al
ready issued proceeds from the sale of which would &c
into the pocket of the promoter?
This nreIin7inarv information viii be required au
thorzed by Section 1909 I'D of the Code and IS nteeC
to bring about disclosure of pertinent facts s4Iceh
to enable intending purchasers to form reasonable "'
accurate judgement of the value of the security.
This office will investigate the information turnlsAeo
and if it found be correct, Will name date Nhe'
S. G. MCLENDON
Secretary of State
AS closing word wish to say however, that we DO
not think that all oil companies frauds or fakes bUt
the percentage OF paying is small as to warrant
an investigation before investing in this class Of stocks
II is totally unnecessary for doctor 10 order the
average man not to work On the other hand takes
notice guard to make of them go to lt-Rore
Tribune Herald.
Then our acquaintance with average men must be
very limited.
The shortage of is worrying lot OF folks, but
not nearly so many as the would have done five
Do that yhic