Salt Lake Telegram | 1926-01-27 | Page 8 | For Teh Public

S 'S VT 0 f F For the Public 5 or I I S. S H 4 I HE Im state securities commission was cre- cre 11 tl aleci for the express purpose of surrounding surrounding sur sur- lou rounding di the public wity greater protection in tho the purchase of securities s near and a actual S In In other words the tiie legislature intended to create a body which would render some definite definite nite assurance to the public ii the matter of 5 basic values basic values in stock offered for sale on the S. S Utah market Its jurisdiction seems to be unquestioned only in inso so far as it applies to new stock co companies selling shares to the tile general public Just recently the commission and ind nd the Salt L Lake ke I stock and mining e exchange were engaged engaged engaged en en- in an argument over over the commissions commission's power to demand a surety bond from from- stock stockbrokers stockbrokers brokers operating in Utah The The trouble Appears Ap fp- p pears to have have been amicably settled until such time as the legislature meets again The incident however shows the tendency to question the powers and jurisdiction of the 5 commission n. n If the state securities commission commission commis commis- sion is to function in accordance with the desires desires' 1 s of the legislature it must have jurisdiction and power power- to enforce its decrees w 4 Moreover it must have have- some power over brokerage e houses houses- if the public is s to bo be fully protected The Th matter of bonds Douds is intended to protect the pu public in its dealings with brokers rokers Fortunately Fort y the majority of brok brokers broke s 's sarc I are arc thoroughly upright and honest but like likeS I all other lines the brokerage business business' attracts I S some some Borne unscrupulous operators The bonds required required required re re- re- re by the state are re intended to give the securities co commission mission power power to control the operations of this class S I In the absence of f drastic action on the part of the exchange itself to drive out sharp operators this is about the only thing that can be lone done The exchange should guard its reputation zealously and should take definite an and active steps toward punishing any and all members who are found guilty of unprofessional unprofessional unprofessional conduct However this is a matt matter r that only the membership can determine and where they fail to act there should be a source of public appeal In this spirit the legislature created the state securities commission commission com corn mission and we are glad to see the commission commission commis- commis sion insisting upon a general recognition of oft its t i powers S I f i u r l j il