Indiana daily times. [volume] (Indianapolis [Ind.]) 1914-1922, 1920-07-23

support.
Senator Furnas declared that If this
section were allowed to remain un-
amended, that it would be impossible
to organize a new bank or other con-
Germ in the state as every share of stock
would have to be sold and then the pro-
moters would have to wait twelve
months before they would dare to invest
the money.
The section was stricken out.
Some of the more important features
of the blue sky law are as follows:
TAKES EFFECT
AUGUST 1.
1t becomes effective Aug. 1, 1920, If
approved.
All securities of Indiana corporations
or of foreign corporations having more
than 10 per cent of their assets in Indi-
ana issued prior to Aug. 1 are exempt
but securities issued after that date shall
be subject to the provisions Of the act
unless specifically exempted in the bill
Provision is made, however, that such
Indiana or foreign corporations may
bring their securities issued prior to
Aug. l under the supervision of the blue
sky commission, If they so desire.
Every person, firm, corporation or as
ISOLATION shall register with the secre-
tary Of state prior to issuing any Sc
curities and pay a fling fee of $40.
The information that must be filed
with the secretary of state by the issuer
of securities includes names and ad-
dresses of officers and directors and
agents location of principal Office state
ment of character of business; financial
statement; detailed statement of the
plan upon which the applicant proposes
to transact business; the approximate
price at which the applicant proposes to
sell securities; copy of prospectus or
other advertising matter used to sell
such securities: statement of applicant s
income and fixed charges for period
Of one year, If in business for that length
Of time; detailed statement Of cash.
property, services, patents and good will,
together with the amount of commits
sion to be paid in cash or otherwise for
the sale of such securities; amount of
capital stock set aside for promotion
stock; articles of incorporation or part
nership must be filed If they are not
already fled with the secretary of state {;
if the applicant is a foreign corporation
1t must file a certificate executed by the
proper officer that it is authorized to
transact business in the particular state,
territory or government in which 1t is
incorporated.
The measure applies to domestic in
yestment companies, foreign investment
companies and dealers
A blue sky commission, consisting of
the secretary of state, the attorney gen
eral and the treasurer Of state, is ere
ated.
This commission Is empowered to in
vestigate the moral and business char
acter of the applicant to determine
whether a license or certificate shall be
issued.
The commission will also determine on
the percentage 10 be paid statesmen for
selling securities
When requirements of the measure
are complied with the secretary Of state
will issue a certificate setting out that
the concern has been investigated by
the state for the particular issue TO be
sold and carrying the information that
the secretary of state makes no rec
cmmendation relative to the purchase Of
any security
The certificates may be issued at any
time, but shall apply only 30 the issues
named in the certificate.
SECURITY Statesmen
MUST BE REGISTERED.
Securities statesmen must register with
the secretary of state, and upon the pay
nent of 81 receive a license to sell a
particular issue
Dealers in securities must register with
the secretary of state and receive I IL
cense upon the payment Of $50. such H.
cense to remain in effect until revoked
for cause after hearing. Each salesman
r1ployed by Il dealer must register.
EXEMPTIONS
ARE SPECIFIED.
the operation of the bill including stocks
or bonds Of quasi-public corporations
under the regulation Of the public sery-
( ice commission or any other branch OF
state or national government; to any
bond of any governmental unit; stocks
notes obligations or other securities Of
belongings to, or pledged to any ma
tlOnal bank; or Of any bank, trust
company, building and loan association
society or insurance company organized
and doing business in Indiana stocks,
bonds or other securities, sold at judi
cial, executors, administrators bank
ruptcy sale; bonds or notes secured by
first mortgage lien on real estate or
I leaseholds In the state where the en-
tire mortgage is sold To q single pur-
chaser as a single sale: to dealers IN
securities acceptable to the state bank
I ing authorities as collateral for loans.
Personal transactions IN stock are eX-
I empt when the transfers are made In
the usual course Of an individually
business.
ViOlators Of the measure may be con-
victed and fined from 800 to $1,000, to
which may he added Imprisonment In
the county jail not to exceed one year.
( No securities shall be advertised In
the state unless they meet the require
of he f71qoeuro
/ The bill creates three new state Of
I fees. security clerk at a salary Of $4,000
year. deputy at $500 and assistant
/ at $500. all to be attached to the Office
/ of the secretary of state
/ The making Of any false statement in
advocating the sale of securities shall
I be deemed a felony. The penalty pro-
/ vided is a fine Of not less than 500, nor
more than $4,000, to which may be added
imprisonment from one to FIVE years in
Z the state prison.
/ Stock issued for promotion fees or
other intangible assets shall be deliv-
cred to the secretary of state and held
/ in escrow until the stock paid for by
/ stockholders shall have paid not less
! than one 5 per cent dividend.