Show Looser Stock Issuance Rules to Benefit Utah By CHARLES 0 O. O GRIDLEY Telegram ram Washington Correspondent W WASHINGTON April 28 Action ot of the federal trade commission in liberalizing the stringent requirements for issuance ot of tock stock In mining companies and other small enterprises capitalized at not more than was said today by Representative Abe Murdock ot of Utah to remove remove re- re move the fear of severe penalties which has retarded mining mining- develop develop- ment in Utah nd adjoinIng states Any legitimate mining company should be able to qu qualify without difficulty dif dif- under the revised regulations regula- regula hi he said The more liberal rules prescribe It a simplified procedure dure for ot of not more than and exempt entirely those companIes capitalized at not more than Cites Important Change ce The most important nt change made by the commission In Murdocks Murdock's opinion is the removal of the requirement requirement require require- ment that stock must have a par value of Now any par value can be fixed the only restriction being being be- be ing that Its stock shall not be soldat sold at al le less than that figure Promoters and backers of at mining ventures maybe may maybe be reimbursed in stock but are arc not permitted to soil solI to the pUblic an any such stock in excess ot of the amounts they fliey have actually spent until the company has shown a net prom profit forone for one year Purchases of 01 stock in mining com having havin less than capital cap cap- ital stock must also be given iven a state state- I ment of information outlined by the federal trade comm commIssion Jon w ich is not as complicated as the similar statement required of larger compa nies Distribution c Cast st Limited Cost Cost of at dIstributing stock in the smaller companies is limited to 25 per cent as against 10 per cent before be be- tore fore the modification Companies Is is- issuing suing the stock also are arc prohibited front from representing to customers that their stock Is 15 reg registered or is exempt front registration with the comm slon Murdock said that both he and Representative Rep Rep- James G. G of Nevada chairman of at the committee of mIning state representatives which worked out the changes with the commission were well with the changes He complimented Corn Com James M. M Landis who vho pre pre- prepared pared the original draft or of the secUrities act for the assistance he gave in revising the adminIstration reg applying to mining com com- panics |