Show PROMOTION STOCK IN ESCROW the states securities commission of utah has adopted a plan under the bluesky law that promises faither protection to buyers of stock in new mining companies and in new the new policy demands the placing of promotion work in escrow with the commission in amounts sufficient to guarantee some return to investors ve so that if the company selling the stock fails to make good there can be some resources on the part of the buyer the commission it is stated will continue to hold the escrow stock until reasonable dividends have been paid when it will be released this is surely surel y a move in the right ri gh t d direction and will have a tendency to check goldbrick gold brick operators and vendors of worthless securities of course the commission will pass upon all such securities before giving permission for the sale of treasury stock this in itself is a great safeguard but it is possible for some fraudulent proposition to get by the commission and it may be some time before its true character is discovered it may swindle the public for awhile but it will be some satisfaction to know that a portion of its stock will be tied up which will be some drawback to the promoters even if the stock is worthless with reputable companies the new ruling rulin ZD will tend to check carelessness to some extent and this failing is often the pitfall that leads to failure the escrow policy adopted by the commission will at least add some protection to the stock buying public and will prevent the sale of a certain amount of promotion stock in competition with the disposal of treasury shares so often disastrous to companies seeking to raise money for development purposes |