The Monte Vista journal., 1919-02-08
Celera1s Needs BE Sly Law
(Coatinuod from PAGE vtvsD

To this authority and pss1iss,oa 10 |
sell givsa before The stock ssA ssr-
usitisA BE- offered 70 The Dsblie.
Any Law wAicA merely peevidss
for the altns Of doesossts. data aad
statements With he Sscsstasy Of
State or olhsr o0eee without giviss
that ofl,ces authority 70 inspect asd
pass judgement sad exercise control.
will bs WORTHLESS from the sand poiai
of tho Investor and he II the gentls-
man Who 10 to be protected By The
Law. Such . Law would only add TO
amount Of clerical duties to b per-
formed In tho once IN which sueh
documents were nlsd and 10 the vol.
ums Of unnecessary docunsats fouad
In tho alcs Of many Of our public
oslceA.
Tho experience OF the diRseeat
states which have the Blue Shy laws
should BE- . guide to the forming aad
enactmen, Of an sslcisnt law for this
state.
Expcrisnce gained In combating
tho sale Of fraudulent or worthless
stock and securities. has taught that
ono Of the principal weakness Of oil
of the present Blue Sky iAws. v
that Of failure TO provide smeisst
and simple means Of enforcement of
the Law. II 10 true that practically
all provide for aome character Of
Investigation OF the character and
worth OF the securities 70 b. offered.
Some make provisions for the citation
OF the alleged offenders to show cause
before tho authority why the permit
granted should not b. cancelled In
event Of violation Of the permit
charged But all OF these provisions
do not put any means In the hands
OF tho public TO instituts invsstiga-
ton In the community In which the
promoters may be operating at the
time.
The criminal Law and tho Fsderai
Law protcrting the malls from use to
dcfraud the public hold In cheek the
issuance Of positive fraudulent state
msnn in writing. Anything Of that
character which IL sent through the
mails or which forms . part Of the
v,neso, ~ SuAuo>->ue ou -harh ekn
purchaser parts with his money. can
be dealt with under present statutes
against frauds.
Tho real Pirate OF Promotion 10
we'll advised legally. and all con-
tracts and solicitation literature show
that the author knows how far to 90
in the written statement and keep
out OF the reach Of the criminal laws.
The evil arises thr ugh slick
tongued salesmen who infest the
country district and who promptly
and effectively present the PROPOSE
ton as present profit earning secur-
ity instead of one Of highly specu-
lative character. There " NO doubt
that this In done at the direction OF
some responsible and directing o6ici-
al since tho same mis-representa-
tions are made by agents In different
parts OF the country.
Tho trouble with tho Blue Sky
law In other states is that there Is
no provision by which tho people In
tho country can get action on such
agents until the evil has been done
II there was a provision In the Law
which would cast . duty on the Dis
trict Attorneys and their deputies
and also on the County Judges. to
hear informally charges against
agents who are attempting to de-
fraud the public. and to make report
OF tho facts to the Commission OF
authority In control OF the enforce
ment OF tho law. then there would
be means OF preventing the ex.
ploitation OF the public.
Under such q provision tho party
solicited by the agent would have
a ready means OF getting at the
truth and learning whether the rep-
resentations made by the agents cor.
responded with the facts as present.
ed to the commission for the pur.
pose OF securing the permit. The
agent OF fraudulent or worthless
stocks cannot stand the liRht Of pub