South Bend news-times. (South Bend, Ind.) 1913-1938, 1922-11-22


that even this stock would have to
be placed in escrow with the secre-
tary Of state. and he would not be
allowed to withdraw any Of this
stock from escrow until the COM
pany had earned and paid dividends
on it's entire outstanding stock.
The United States patent laws
were designed for the encourage
ment and development of the pro-
duction Of inventors and the re-
suits therefrom have been the great
est businesses in the world, found
ed on these inventions. The sta
tutes of the State of Indiana and
other states are operating as
hindrance to future development of
businesses founded on inventions,
the magnitude of which. Judging
the future by the past, will exceed
all past inventions. Could II be pos
sible to wipe out the past and An
drew Graham Bell, If he were liv-
ing today, and he would take his
crude model, which he had at the
time of his invention of the tele-
phone and submit the same to
some Securities Commission Of to-
day they would in all likelihood
consider his invention, as it was
considered in it's inception, a toy
and he would probably be lucky II
the commission would allow a com
pany TO pay in stock five thousand
dollars for his invention, and the
same going into escrow; he would
probably starve TO death, waiting
for the company to pay dividens
so that he could receive something
as a recompense for his wonderful
invention.
The same would apply to the pa
automotive inventions. The laws
creating Securities Commissions IN
the various states were primarily
designed to prevent fraud and in
the beginning the application for
permission TO sell securities pre-
scribed certain forms TO be filled
out and were easy to fill out by the
layman and the commissioners re-
duested the applicant to prepare
the papers themselves without tho
aid Of q lawyer. Since then the
forms have multiplied and so in
tricate that only the lawyer. quail
fed by experience can prepare
them. In fact, today the lawyer in
ordinary practice in a great num-
Der Of instances has TO call into
consultation the corporation law
yer. who has had experience in
making out the applications for
permission 10 sell securities in MANY
OF the states Too much Of a bur
den is placed upon the commits
sioners under the present inter
probation and operation Of the sta
tutes in a number states. the Com
mission operates. not only for the
prevention of fraud. but they en-
deavor 10 determine in advance
whether a business. being organized.
whether IL be in a new field or an
old one. viii be successful. This is
expecting too much OF the COM
missioners.
Most all businesses developed on
patents today become interstate
businesses and there is a bin be-
fore congress now for a national
securities commission or national
law. and il would be a good thing
II congress would provide a certain
set method OF procedure and GER
tain forms 10 be filled out. furnish
ing requisite information, together
with the proper affidavits and pro-
viding requisite information. to-
gether with the proper afidavits
and providing the proper penalties
and all who comply with the re-
quirements and obey the laws
would be allowed the right 10 try
and build a business, and the peo-
pie be given an opportunity 70 in
vest their money and participate ir
the development OF such business
es With the essential information
furnished, the individual could
then use his own Judgment, could
consult with his banker or his
lawyer or any one possessing the
qualifications TO give him proper
II he felt that other than
his own judgment were needed.
The writer believes that great
good will come from this first con-
ference and other conferences
which Will be held later. where
here are brought together. as in
his instance. the representative OF
he state, the bankers the brokers.
he investors, The inventors, and