Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1920-03-02
PRESENT STATUTE PUTS NO
CHECK ON GALE OF IOWA
SECURITIES.
SECRETARY SAYS ExlsTANr
LAW IS WITHOUT TEETH
Promotion Expense Of Only Outside
Concerns Limited - New Law
Would Give Secretary OF State Alb
solute Control Of Stock Selling
Law Should Be Uniform.

Des Moines, March s.-Iowa cor
poration laws wink at the filching OF
the public purse by concerns incor-
porated in Iowa and selling stock In
Iowa. Such concerns are not under
stringent control OF the secretary OF
state and pay stock statesmen what
ever percentage they see fit as COM
mission on stock sales.
Concerns incorporated in other
states but who operate ana sell
stock in Iowa. are limited in their
filching of the public purse thru
commissions paid to stock statesmen
or promoters.
Iowa stock selling or promotion
concerns, are not affected by the
so-called Blue Sky" law. but must
guide themselves only according to
common corporation practice and
corporation laws.
E.istant Law Lacks Teeth.
Concerns industrial or otherwise
incorporated outside of Iowa. come
under the so-called blue Sky
law. but the law is minus teeth.
Secretary of State Ramsay says. and
is looked upon as directory in form
rather than properly restrictive. or
protective. Investors buying stock
in concerns Incorporated outside of
Iowa. are insured a slightly better
check upon the companys funds,
than if they invested in a home
corporation.
Walter Ramsay, secretary of
state, and the legislative commit
tee from the Iowa State Bankers
Associa ton have realized this for
some time According to Mr.. Ram
say. the above listed points exist
and will be remedied by new law
which his own office aided by at
torneys is now preparing.
Ramsay Proposes Remedy.
The new law will have for its
purpose the setting Alright of exist
ing conditions and the giving of
absolute control of stock selling 10
the secretary OF state. The new
effect, to the extent that Iowa cor
porations and outside corporations
will be permitted to give statesmen
no more than Is per cent COM
mission.
Mr.. Ramsay arbitrarily, and with
the meager aid given by the ''Blue-
Sky" law, now holds foreign cor
porations from paying any commits
sion on stock sales. However, he is
powerless, and has been so, he
says, to keep Iowa corporations
from paying any commission they
wished, even If that commission
amounted to so per cent Of stock
sale.
Inadequate Penalty Provided.
1.-THE present blue sky law is weak
inasmuch as it makes stock selling
frauds a misdemeanor." said Mr..
Ramsay. 1T is also weak because it
does not affect stock selling concern.
or promotion schemes incorpora ted
in corporation laws of Iowa. 1t is
not in any manner affected by the
blue sky laws, such as they are.
Iowa stock selling concerns may
come into this office, present a Won
derful array of statements. such
statements as may apparently be be-
yond attack at the moment. They
pay the nominal registration fee, Is
sue stock and sell it. OF course when
they sell stock, a like amount OF cash
or security is supposed to find Its
way into the vaults of the corpora =
ton law, which forbids their check
ing It out to a stock statesmen next
day, in whatever amount they wish.
with foreign stock selling cor
porations, we have a little stricter
check. We have some ieeway and
may say how much commission they
shall allow. their stock statesmen or
promote Fraud upon the part OF a
foreign company is only a misde-
meanor. however at present.
Law Should Be Uniform.
1.-The home companies render an
annual report, and much can take
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