The Wallace miner. [volume] (Wallace, Idaho) 1907-current, 1920-02-19
KENYON'S BLUE SKY BILL
NOW BEFORE SENATE
SEEKS TO REGULATE ISSUE OF
STOCK BY CORPORATIONS.

Senator Kenyon has introduced a
bill, S. 1902, for the purpose Of giving
some protection to persons having a
limited capital to invest, who have fire.
quently been victimized by dishonest
and INSCRIPTIONS statesmen of worth
less or questionable stocks. The text
Of the bill is as follows:
To regulate the issuance Of stock by
corporations engaged in Interstate
commerce.
BE it enacted by the senate and
house Of representatives of the United
States of America in congress as
sembled, That whenever an offering is
made to the public of an original is
sue security by any corporation en-
gagged in interstate commerce the is
suing company shall file with the
United States postmaster at its legal
address for public inspection. and also
with the federal trade commission at
Washington, a statement signed by its
responsible officers or promoters
showing
Must File Statement.
(a) The purpose for which the cor
poration is organized;
Cb) The officers and directors or
promoters, and their residences and
whether securities are held by a hold
ing company or whether it holds Sc
curities of another corporation, naming
such corporation; what commission, if |
any, the officers, directors, promoters /
or agents are to have for the organi-
zat:on Of said corporation and the |
floating of said securities;
Co The latest balance sheet of the |
issuing corporation such statement I
shall show in detail all payments for
tangible and intangible property. good
Will, promotion fees and any and all Z
other agreements for the disbursement
of money except as shown in (d) here
matter;
(d) The purposes to which the
proceeds of the sale of the new secur-
ity are to be devoted
(e) The terms of the flotation
showing the price at which the securi-
ties are sold by the issuing corpora
ton; the estimated expense of the flo
tation; the name Of underwriters, if
any, and the terms of underwriting and
the names of and terms by which sub
underwriters, syndicates, bankers,
brokers and others deal in the original
sale of such securities.
Must Be Public Record.
Section 2. That the statement pro- !
vided for in section 1 shall be a pub E
lie record that any prepared, pros !
pective circular offering such securi- c
ties for sale must contain the infor- (
nation described in subdivisions ca, Ii
CO. Co, (d), and (e) of section 1 and If
that a copy showing the same must be d
attached to each bond, certificate of C
preferred or common stock and to each L
receipt or certificate evidencing a sub t
scription to such security. Any false d
or misleading statement in such state 70
ment herein referred to shall con- r
stitute perjury as to each and every p
person issuing or signing the same. It
shall be the duty Of the United States
district attorney of the district in 4.
which such person or persons may be o
found to reside to proceed against any Y
person so committing perjury under n
the terms of this act.
Section g. That any purchaser who ~
may purchase such original issue of a.
security where material mis- statement ~,
is made in the statement provided for
under section 1 of this act may re-
cover twice the amount of all moneys A
paid for such original security and -
may join the issuing company and ~
each of its officers, directors. and :,
promoters as well as the underwriting =.
syndicate, and each and every other 7,
party to the sale of such security; and -
judgment shall be rendered Jointly and b,
severally against each one thereof if f,
and when material mis-statement is -,
established provided: That suit must -
be brought within one year after the II.
shall have knowledge or n
such material mis-statement. q,
Section 4. That any person who
shall mail or cause to be mailed in any
oostoffice Of the United States any
original issue security, knowing that re
he statement required by this section 81
las not been filed as prescribed here Fl
n; or who shall mail or cause to be A
nailed in any postoffice of the United Sc
States any statement required by this II
section knowing the same to be false b
n any particular shall be fined not dl
ess than $4,000. or imprisoned not NOR b
han five years, or both such fine and
Imprisonment