Evening star. [volume] (Washington, D.C.) 1854-1972, 1919-02-14
ASK PROTECTION
I'm STOCK SALES
Secretary Glass for Law
t0Safeguard Government
/. and People.
Urges CONGRESS TO ACT

Led Iation carrying sharp teeth. to
prote the government in its finan-
siai operations and the people of the
country from ''threatened grave in
jury, growing out of the issuance
been asked OF Congress by Secretary
Glass of the Treasury Department.
In letter yesterday to Chairman
iKtehjn ofthe House ways and means
committee, Secretary Glass urged
early enactment of a bill drawn by
thesscapital issues committee. Under
this-Hroposed lay every individual,
firns association or corporation, pro-
posing to offer shares of stock in a
corporation to the public for pur-
chase, subscriptin or acquisition in
any manner and using the mails for
such purposes or any agency con-
trolled or owned by the government.
would be required to file statements
concerning the stock before it is Of
fered for sale.
For Severe Punishment.
Persons signing statements would
be held responsible for any falsity
therein. Punishment for willful viola
ton of the act would be a fine OF
$4,000 or imprisonment for one year,
or both Persons suffering from in
territorial misrepresentation, according
to the bill, could recover damages.
Stock offered for sale by purchasers
in compliance with the act could be
dealt with without further require
ments. Provisions of the act would
not apply to sales at public auction
or on stock exchanges, nor to offers
Of shares owned by bankers, brokers
and dealers to their customers, in ac-
cordance with licenses granted by the
Secretary of the Treasury.
Public service corporations, whose
stock issues are approved by a state
commission, would be exempt from
the requirements of the proposed act,
but all other corporations engaging
IN interstate commerce and proposing
have to file required statements
Statements would be signed by the
head of the corporation, the financial
ofi1cer and the majority of the board
Of directors. Details of the corpora
tionsS organization would be re-
CURED
Wants Bureau to Control.
Establishment of a bureau in the
Treasury to administer the act and
appropriation of $4,000 for it's ex-
penses during the fiscal year ending
June 80, 1920. would be authorized by
the bill. which would become effective
sixty days after its passage by Con-
gress.
M. Glass letter stated that the
country Is being flooded with stock
flotations, many OF which are doubt
full He asserts that millions of hold
ers of liberty bonds are being solic-
tied by paid agents to exchange the
bonds for these securities, thereby
seriously diminishing government re-
sources and causing ruin to bond
holders
He said that the proposed act would
not eliminate entirely such conditions
and that supplementary legislation
would be necessary. Solicitation
within . state only could not be con-
tro1led by the act. he added, but
state acts requiring all persons de-
string to sell shares of stock to the
public first to obtain state license
would help greatly.
AT the present time" said Mr..
Glass, legislatures of a great many
sfates are in seseion. and earnest
~ hope that proper action may be
taken by them in coordination with
1eG1slatiou that Congress may please
to 1nact''