The Morning Tulsa daily world. [volume] (Tulsa, Okla.) 1919-1927, 1919-07-15
STATE CLAMPS DOWN
ON STOCK PROMOTION
ONE IS FOR MILLION DOLLAR
American LHW) cr''' on and Gn- Cum
Pnnv Authorihci--IIarry IIoFcr-
Of Tulsa incorporation

RpscIal 70 Tho World
OKLAHOMA CITY. July ~ IN,
stale issues commission drIrratcd
with the administration ~ the Wu,
Sty aw' at ls first formal meeting.
GRANTED permits 90 operate 300 Okla
homa 10 three ~ fyo concerns. au NJ
them companlca urguuiIcd fur lhc *
nloration and development ~ oil
properties ono Of the Duurcrna. with
"a million dollar capitalization. ia the
hmoricin Lawyers Du and cas-
company Among ma uirauItrfH ar,
a. n. Uugora uf TULSA. WIri crank
llp and Jake llamuu or Afdmoio.
u IL underHtood mat tho stock ~
this CON pany has hcrn cuiirr,. rub.
trribod and hat the fundH viii be-
held In trus pending Investment
An hppll. ION mas boon made FOR
Tho author. uuu NJ security Anleu
hy tho Pan" uorican Motion Picture
company, of which Henry starr. pr.
rolled several weeks ago by Governor
ltObcrtsnu. ia one ~ the central fE
urea The application ~ this com
pany has not hoen acted upon
Under an opinion given by tho a..
iorncy generals department com
m iasionA, promoters fees and luci
dental expenses shall not exceed
fifteen per cont ~ The stock sales
OF companies doing business under
the lilue SKY law The opinion.
briefly. follows
This provision tH~ction - would
seem 10 limit the power ~ the com
mission 10 grant "A permit 10 sell
stock. or bonds uf any promoter
where tho commission for the snl"
thereof. the expenses NJ promotion
~ tho enterprise and the expenses
Incident thereto exceed fifteen per.
cent OF the par value or NJ tho In
creased price NJ which the sum iA
10 be sold. Such fifteen per cent,
obviously compgehends tho max
lmum amount which may be al
lowed the promoter and agents Rs
compensation for organization. ad-
NertiAing and The sale Of the Hccur-
tiles Of any enterprise under the
supervision and control OF the state
issues commission.
However. in the opinion Of the at
torney general. ~ would not include
the salaries Of officers or managers
~ any such enterprise for their Herv-
tees In the conduct Of this business
entirely independent ~ and discon-
nected with promotion, commissions
for tho sale OF stock or bonds and
tho expenses Incidental thereto.
Tho state issues commission has
supervision OF the sale of all specu-
lAtlve securities, AZ defined In sec
tion ono OF The act. offered to tho
public by any promoter or agent
regardless OF tho percent offered or
paid az commission.
As 10 what securities are specu-
lative. in fact, will. OF course, present
question for determination by the
com mission upon avery application
for n permit to sell tho same.
The term securities NJ defined In
section ono OF the act In question
means stock certificates, shares.
bonds. dobentureH, certificates, con
tracts or bonds for the sale and con
ments or the instaIlment plan or
other inStruments IN the nature
thereof by Whatsoever name known
or called and including tho capital
stock OF any and all corporations
offering the same for sale,
By virtue Of this and the Eubse-
auent provisions Of the act tho at
torney general IA OF the opinion that
promoters offering far sale undi-
Vded interests In oil and gas leases
or oil royalties nre subject TO the
control Of the commission.
However. tho act does not apply
20 salea for cash where no com
mission or fee II charged or paid,
or to the sales OF securities In the
ordinary course Of business by tho
owner In good faith who is not the
maker or issuer thereof