Americus times-recorder. [volume] (Americus, Ga.) 1891-current, 1920-08-19
Blue ACT TO
STOP ROBBINC
CREDULOUS HERE
Fake Stock Salesman
Reported to Have
Done Big Business

AudG IIduuuISHI OIL concerns ana
Pther speculative enterprises have
been reaping a rich harvest in Geor-
gla, taking out thousands of dollars
and giving nothing in return, is said
to be the reason why the recent ses-
sion of the state legislature enacted
new blue Sky" law. Reports which
have reached the Times-Recorder are
that Sumter county people have been
victimized in a measure that would
astound the public if known in full.
But the new law will put stop to
these operations, being drastic and
designed absolutely to safeguard the
public.
The new law, as enacted, was
drawn by Representative Stephen
Pace, of Americas, as special COM
mittee member, in consultation with
various state officials who have had
dealings in the past with fake stock
statesmen. For the enlightenment of
the public the Times-Recorder asked
Mr.. Pace to summarize the provisions
of the new act, which is lengthy,
which he did as follows:
Summary of Bill
"The Georgia Securities law, re-
pealing the Georgia Blue Sky law of
1913, creates a Securities Commits
sion, composed of the secretary of
state, the attorney general and the
commissioner of commerce and labor,
which commission shall have super
vision of all speculative securities
hereafter sold in Georgia.
''The law classifies securities into
IL Ill,
qualities of which assure their sale
and disposition without the perpe-
tration of fraud, such as federal,
state, county and city bonds, bank
and trust company stock, stock issued
by public utility corporations opera
ting under the supervision of the
railroad commission, negotiable prom
issory notes, mortgages, etc. Second,
securities, the inherent qualities of
which, or in the nature of one or both
parties to the sale thereof, assure
their sale and disposition without the
perpetration of fraud, such as stock
in corporations where no commission
is charged for the sale, judicial and
executors sales and the like. Third,
securities based on established in
comes, such as stock of corporation
which has been organized for more
than two years and has earned a spec
flied income, exclusive of all charges,
and fourth, securities based on pros
pectiye incomes, that is, speculative
securities, and it is principally with
this fourth class that the law treats.
Before any securities OF the
fourth class can be sold the issuer or
dealer must make application to the
commission for a license in which ap-
plication must be given every detail
of the applicants business and prop
critics. a copy of his charter and by
laws. the names of all officers, direc-
tors and agents, and the business
thew have been engaged in for the
last eight years, the principal office,
an inventory and appraisement of all
assets. a statement in detail of the
gross income and operating expenses
since commencement of business, the
deeds and mortgages by which the
stock is obtained and secured, and
anv other facts the commission may
require. Before license is issued the
commission must send an examiner
to the place of business of the appli-
cant to examine the property and
records and ascertain the true char
acter of the undertaking, and the
applicant must name a permanent
rent in the state against whom suit
can be filed.
NAV Issue Licenses
"If the commission is satisfied
with the examinations made and of
the good repute of the applicant, 1T
NAV issue a license. In this license IS
set forth the name of every person
who is authorized to sell the particu-
lar securities licensed, and also full
description of the securities and the
nature of the business, with the words
in bold-face type that "These are
speculative securities" And before
anv agent can sell such securities he
must first present the prospective
purchaser a certified copy of such
license. This license may be revoked
by the licensee engaging IN any IL
legitimate or fraudulent transaction,
and in case any worthless stock is sold
the company, every officer and di-
rector thereof and the agent max
ing the sale shall all be, jointly and
seyerallv. liable for the amount of
such stock. >.
every six months, and oftener if
required. every licensee must file
with the commission a statement
showing the amount of stock sold,
the names and addresses of all par
ties to whom sold, the sale price
thereof and the cash proceeds receiv-
ed, and the financial condition at that
time; and the commission has the
right to examine the boo'is, records,
accounts and properties of the Ii
censee at any time.
'.Any dealer, solicitor or agent
who raakes any false or fraudulent
statement with reference to such Sc
curities, or who shall sell such Sc