South Bend news-times. (South Bend, Ind.) 1913-1938, 1919-02-09
Compromise blue SKY"
Bill Being Rewntten for
Introduction in House

4 - VII ut A xO(iOC
prospectuses. Such an injunction
would lie in force for one year. un-
less proper showing in court, or the
result OF an appeal. should dissolve
IT, The attorney general is given
power 10 make examination of the
business Of any issuer OF securities
or dealers in them and the expenses
are assessed against the defendant
where enjoining actions result.
Before any agent Of any certih-
cate holder may operate he must
register with the secretary OF state
as such agent and pay a fee OF 81
annually. The attorney general also
is given power 10 make an appraisal
or the property OF the issuer OF any
security Domestic and foreign cor
pOratiOns are defined in the BILL. as
are dealers In securities.
Exemption of the following classes
Of securities from the meaning OF
securities as used in the bill. is
provided: County. township. city.
town, government, governmental
agency or other public securities:
stocks. bonds, or other securities Of
Quasi-public corporations. the is
suance Of whose securities Is regu-
lated by a public service commits
sion or other similar board Of In
diana, or any other state. or the fed
eral government; stocks. notes or
other obligations OF any national
bank. trust company, building and
loan association or insurance COM
pany. regulated by other laws OF the
state: stocks bonds or other Sc
curities sold at judicial, executors
or trustees in bankruptcy sales;
bonds or notes secured by first
holds; securities of corporations or
ganized and existing Under and by
virtue Of acts of the congress OF the
United States.
What is Not Affected.
The provisions OF the act are not
to apply to the disposal of securi-
ties 10 a corporation nor to "A GER
tifcate holder under this act nor
to conveyances OF real estate. A
disposal of ones own property. of
any kind named or specified i'm this
act. for the owners account ex-
clusively. shall not. Of itself, be held
TO amount to dealing therein
when such disposal: is not made m
the course Of continuing or repeat
ed transactions OF similar nature;
is made to an incorporation. ante
n
ready a holder OF the fully paid
stock Of the Indiana corporation is
suing the property so disposed of
by it; or is made by the issuer OF
the property so disposed of
and consists Of negotiable prOmis-
sorry notes given for full value .;
or is made to a bank, trust COM
pany, insurance company, building
and loan association or to a dealer in
such property"
The provisions OF the bill shall not
apply TO "One. who. in a trust ca
pacity created by any law of the
United States or of this or any other
state. or by judicial authority, law
fully disposes of any property en-
braced within such trust: or TO a
bank or trust company, organized
under the laws of this or any other
state and subject to examination and
supervision by the proper authority
thereof " =: or TO one, not the
issuer. who disposes of securities to
a certificate order under this act,
or 10 a company. which, as a part
of its regular business. deals In or
holds such securities; or to one who
pledges to sell in the ordinary course
OF business a security pledged to
him as security for debt in good
faith and not for the purpose of
avoiding the provisions Of this bill;
or to the isSuer where the
disposal is made for the sole account
OF the issuer. without any commits
sion and at a total expense of not
more than two per cent Of the pro-
ceeds realized therefrom, plus $50 0.
and where no part OF the issue goes
for patents. services, good will or for
property not located in this state.
Punishment Provided.
ANY dealer or agent guilty OF vio-
lating the bill would be guilty OF
lAASutllltdllOl anu nt SuhJtNl u a
fine OF not less than 500 nor more
than $1,000. or Imprisonment for
one year. or both Advertisements
OF securities would be serially num-
bered. under the bills provisions.
with numbers corresponding to
those on the certificates issued 10
the dealers Not 10 exceed three ad-
ditional deputies for the secretary
of states Office to handle the acts
provisions are provided by the bill.
the salaries of theses clerks not 10
exceed $1,000 a year. Fees collect
ed are TO be turned in to the state
treasury.
The term securities as used in
the bill is defined 10 mean stocks.
/ bonds. debentures. stock certificates
collateral trust certificates, or any
other security Of any kind or char
acter evidencing title TO or interest
( in property"
a sale" is described at length. as
il comes within the purvie of the
proposed act.
Anti-Fraud section in Bill.
An apparently strong anti-fraud