| Show IDe lue ue Sky Law Law Bad for Fakes Fakess t hady Dealers s Leave Denver Companies Benefit iene r i I OWING G is s the text of the blue sky ordinance in effect in i t OLL since January 1 last and which is said to have resulted F. F D Denver t a nU number numb er of dealers deale s in fraudulent stoc stocks s to l leave a vc thata that t fc t p I to the benefit of companies comp antes operating in In a legitimate manner 1 A BILL BILlJ s t and prevent to l regulate j as an n off iraa sale of oC stocks ks of or corpora corpora- Id I'd in tM he licensing the thea ind and d In a den dealing In suck stocks of of Denver and county CU city ritY sad nd violation a for far the tho r cof A the council of or the city bv hY i ite it t or of e county o firms ns ns- p persons berta have hn during tiers And rd and md sold within past r coin ty J of oC Denver stocks of Arnd ArA day citY A various and ard associations I vi of oC don Ilona 0 Instances both bOlh In numerous and ind Sd and legitimate le busl- busl S nt t been be greatly Imposed upon upon and md 2 tJ e re W false and n rep rep- d ed rf by tr il and n sale I Ii of oC ah erl ad tio i I and designing I aks ks lIr by rd It Is the express purpose and 3 as the this ordinance to protect d ct purchasers and a f Innocent ce Hi of th the dt city and county count of Denver b by the tho prevention of or such frauds mulls In tho the future Now o therefore S Section I 1 It shall bo ue unlawful In the city and county of oC Denver cr to io sell or offer of offer of- of fer for forIe sale Ie an any fictitious fraudulent falc false or spurious stock of or an any corporation or association and It shall also bo be Ic un unlawful un- un lawful to false falsely represent or to make m misleading ln statements concerning the value alue of oC an any such stocks or to falsely represent or make malc misleading statements is concerning the character title or value alue of oC the property of or corporation or association asso asso- association when selling or offering for sale stocks of oC such corporation or association In sash said l ct city and md count county Section 2 It shall bo be unlawful In the elt city nn and co county nt of oC Denver cr to offer salt saie 1 at t public auction or by IW public display of stock quotations or by b advertisement any fictitious fraudulent fr fako fato or spurious stocks s of oC nn any corporation or a association and It shall also be unlawful In tn offering the stocks stacks of oC corporations or associations for sale sain at nt public auction or h bv by public display of or of stock quotations or b by advertisement ad- ad to falsely represent or to make misleading statements concern- concern 11 ng g the value of oC stocks of oC tion any corporation corpora corpora- or association or Ot to falsely represent sent or at to make malc misleading statements concerning character or value of or the property of or such corporation or at as ns- ns when hen offering or selling sellin such stock Section Z a 3 No o person verson firm Inn or corporation corporation corpo corpo- ration shall hereafter conduct or carry carr on the business of oC a l stock exchange e or a stock broker In the city and county of oC Denver for Cor tho the purpose of selling or offering of- of Cf C- C fe fering f for salo sale stocks stock's of oC corporations corpor or associations without first procuring n l li- li license li cense from the manager of oC safety and excise Section 4 1 4 The license fee fco for conductIng conducting conduct conduct- ing tho the business of n n. stock exchange e where stocks tocks are ore sold on the tho floor of or the exchange by public call or for Cor conductIng conducting conduct conduct- Ing the tho business ofa oC stock broker n where stocks nr are sold by means of public display display dis dis- play Y of or stock quotations on a bulletin board or other similar device e or by b public c call ll shall be bo three hun hundred red dollars per annum The license fee fec for conducting the business business busi busi- ness of oC a n stock stacie broker other than as ns above pr provided shall shaH be ten dollars 10 per vel annum Section 5 G. G Any An person per on firm or corporation cor cor- applying for a license pro l provided e for In tho the Jr preceding section shall file ClIo a written statement under oath ath showing sho I the th residence of or such person the members mem mein- I hers bers composing such Much firm or the officers officers oUI- oUI cers of such auch corporation and shall shaH fui- fui nish the manager of safety and excise Information as ns to the character and Integrity integrity In Integrity In- In of such per person on firm or corporation corporation corporation corpora corpora- tion and the officers of oC such uch corpor corporation and the manager of off 0 safety safet and excise shall have ha the right ht to refuse to Issue such lIten license If It he finds such person firm or 01 corporation are not a n fit or or of suitable person er on firm or corporation to conduct such business Section C C. C If it shall be made to appear appear ap ap- ap pear to the tho manager of oC safety and antl excise ex ex- cise ciso that any person firm or corporation corpora corpora- tion licensed lrI under the tho terms of oC this or- or Is selling or offering for sale or I advertising an any fictitious fraudulent fake or spurious stocks of any corporation or association or Is fal falsely ly representing or snaking making misleading statements concernIng concernIng concerning concern- concern Ing the stocks of oC an any corporation 01 or association association asso asso- or concern concerning In the th property which such uch stocks represent while having hl the tho same for fer sale or while offering of oC selling selling sell sell- ing InS such stocks 8 then the manager of oC safety and excise after notice and hearing hearing hear hear- ing shall have o the right an and It shall be bo his duty to suspend or 01 revoke the license Issued to such persons firm or corpora corpora- corpora 4 ion tion under this or ordinance section 7 i. Whenever cr it shall shan be he ma made e eto to appear to the manager of safety and nd excise that th the stocks of or an any corpora corporation tion or association being sold lold or offered for sale or ot being or nd advertised nd sc In said city Rn and count county arc fictitious fraudulent fake fako or spurious or 01 that any false or misleading misleading misleading mis mis- leading statement Is being ma made mado e concernIng concernIng concerning concern- concern Ing such stocks or the tho prop lit ty y which I such stocks represent then It shall b bo ho l the I duty of or said manager of or safety nn and excise to make male malen an n Investigation In as to the tho nature of or such stocks the method of or selling same the property which such stocks represent and amI the com company's ans plans of or conducting It Its business and If Ir he fin finds s that such stocks are fictitious fraudulent fake or spurious then the elt city and county of or Denver shall publish the result of such Investigation and no such stocks shall thereafter be advertised or offered for sale and the manager of safety and In 1 ex ex- excise excise excise cise ma may cause the arrest and pro ec j ion of at the 1 person firm or corporation found to be violating this ordinance It shall be unlawful for any person firm I or corporation conducting or publishing a newspaper periodical or other advertising advertis advertis- ing medium to permit the advertising therein of oC fictitious fake le frau fraudulent or spurious stocks stock or 01 to permit advertisements advertisements advertise all ments therein In which are contained false or misleading ln statements concernIng concerning concern concern- ing ins an any and stocks or the property which said stocks represent and If It It shall bo be determined determined determined de de- de- de by hr the manager of safet safety and excise after hl lots his Investigation as aforesaid aforesaid afore afore- said id or by y an any court of or competent stocks out Jut that any of oC such stocks arc are fake fictitious fraudulent or t spurious such finding shall Rhall be he prima facie evidence evi evi- evidence dence that such stocks are false fals fictitious fic ftc fraudulent or spurious and If city any newspaper periodical or other advertising medium shall thereafter advertise such stocks prosecution shall be Instituted against the owners or proprietors thereof Section S l S. S Any An person firm or corporation cor- cor violating an any of or the tho ho provisions pro of or this ordinance shall upon conviction be fined In tn the sum of oC not less than ten 10 JIU nor more than three ee hun hundred red dollars dollar or by J Imprisonment of oC notI not less than five o Hi 5 G days das nor more than Ulan I ninety 00 90 10 days daf or 01 by b both such fine Cine and Imprisonment within the discretion of or the court I Section 0 9 If It an any section subsection I I par paragraph clause or phrase of this ordinance ordinance I u nance nce be held hellI unconstitutional or In- In v 4 It Il sh shall not affect the remaining portions of oC this ordinance and anel the council council council coun coun- cil hereby declares that It would have vas passed the remaining portions of oC sal said ordinance notwithstanding in the unconstitutionality or Invalidity Im of oC an any such section subsection paragraph clause or phrase of oC this ordinance Section 10 In the opinion of oC the council council coun coun- cil this or ordinance Is necessary sar for the immediate preservation of oC the public I health an and public safety and shall be InI In full force and effect after aCter Its final passage passage passage pas pas- I sage and publication |
