Show MORNING JANUARY 15 1922 1 v kings of Securities Commission elI in Detail by Secretary port ort of Daily Newspapers Ne and State Press i Declared of Inestimable Value Wed Information concern concerning the thes Ings s of the state stata securities com com- tt Ion was furnished b t pion by Secretary i erAC 1 eriC lUcks Hicks to the members of ot the 4 committee of the Commercial 1 their weekly meeting and heon n bore ore lr Ir II s had proceeded fa far r l remarks he heva va wa interruPted 1 of a member that thaL tha t was so Important and or of great interest to the mining and ard it at i that the speaker Ge be he h tet te Ito to appear before the committee future meeting to which members I ud uld Id invite imite mining men not n now i lf A fibers bers of the committee and go into IT Ohl subject even cven more th thoroughly lJ I r. r readily agreed t to I this 1 I P and E dE r ted led ed January Januar 28 28 th the last u the month wh when n it ite W would be conI con con- I t SI jent for him to expand 11 upon 1 0 larks I The Speaker er said in part pant tl ti S er since the Present Iti 1 has been full fully uv ora organized 7 d' d poll y has been to deal deaf as lib liberally fl i le with all aU state enterprises especially with the mining Indus indus- Notwithstanding the constant opt op- op t Ion vr on on or the i part of some som of the mie mi- mi t e of ot the state and the enn en- en 11 vor on n the part of a num- num or of brokers era to o evade e the law an ant and andt t i n if its usefulness s In Jn every ery way ww sible th the commission has been able much good for the migi mi- mi gi gJ Industry In as it has been ablE to tf much good for all other en- en es of ot a a a. promotion and develop develon- nt nature TAs As S r the e c Is less than tuce PHeo If 4 LS rs old oid it lt has of necessity t been p el ely a matter of pioneering the field l date te and as a consequence it tt has necessary to move conservatively I J in all cases and even en then hf n t takes have not been entirely Itel avoid avoid- 1 e J However in the short time that commIssion has been functioning las been able to prevent any num- num Lof of frauds and to block and prohibit sums of worthless securities s sI I being sold within the state rAKE PAIn The he mining industry together with oil Industry tn Is of a high specula- specula e nature yet et one of the mot mo t Im- Im tant industries in the United States needs ever every protection that can De tie j iown own around It and er e every assistance tt tk can be given to it In fact I 1 Ilee leve le that the time is not far tar dis- dis both state and federal gov- gov will see the necessity of asling asting as- as ting ling the mining industry as a's as It has Isted oth other r industries throughout To p place mining In Its proper place j I Ith th the investors throughout not only 1 ah but the United States it is iry rY to reduce to a minimum fake mitI mi- mi tI pg schemes and fraudulent stock aUng propositions In other words we Ve are going to secure tle ie l e of the investing public we who rIn in in the mining mining- business must of ot use our influence to see to that when mining companies sell sen ejr aJr stocks s with the promise to Use tue pie that they are going to develop tain ain aln properties they the develop elop those just as far as a's as th the funds funs thy l ct will permit Too often in the st the t-the the investing public lUbliC has been macli matI b elie e that it is investing in trea-j- trea J stock and the money Invested uld be used for the development de ofrain of rain fain mining properties and have nd ind too late that som some clever cleer pro- pro ler l r had sold large blocks o 0 of personal ck tk gk and had put the money in his hisor or pocket while the treasury re reined relied re- re ined med lied empty and the property upon MOh ich this work was supposed to have eji en done remained in Its native a at te to his condition is being fast done was was- with through not only the Utah cc commission Ion but the tho commis- commis oils ofis of many states and we are In times past I might well wen that hundreds of legitimate mining have failed not because the of its officers were not In tn od faith but because some director with a large block of ock ocic would become c disgruntled u or r get oe Y Id feet ruI In l his i enterprise and as soon 1 lie broker er or stock salesman th the e assistance of oC the balance of th th-i th thir r t g had secured a gooc mart mar mar- t he would then dump his stock on one e market li- li in such a way and upon uh h h terms as to kill the entire deal s s method has discouraged investors in d a discredited both the the organizers U I the brokers and the natural conse- conse 9 nce ence has been that not enough funds o ld be raised to reach an nil das as a result many companies have havee havee e e to the wall t. t FLAX X io 0 overcome the sale saie of personal o r dings and promotion stock wh lt rokers diers and salesmen are trying to yer Cr r the treasury stock and nd to as far fars possIble s Insure and safeguard the u ss of ot the sale of ot the treasury tock lock the commission adopted at the thee e of ot its secretary an es esrow esrow es es- row agreement the principal al clause of ot leh Is as follows Whereas the said securities com com- sion has prescribed as a condition re precedent to the granting granting- of to sell the tie securities of any cor cor- OJ tinn that an any securities Of or said sall Corporation issued for a any ny patent ht copyright trademark process pining claim oil permit or good will vill ifor promotion fees tees or e expenses or for or other intangible assets shall be in escrow b by the holders hereof to such uch bank or trust company J be he e designated by the securities Commission under an agreement that ald shall not be toe sold or transferred directly or indirectly for flU uch uh length of time as may be designated designated designated by tile the Ie securities commission and or that hat In case tase of or the dissolution of the corporation Issuing Issuing- the fame came am the owners of ot such securities les so 80 deposited shall not participate in any Distribution of the assets of said corporation cor cor- cor- cor all until after the owners of other securities issued thereby shall have jave been paid in full This escrow agreement is s used bythe bythe by bythe or- or with new the largely and ad during the past nine months approximately shares of of mining and oil stocks have been escrowed and are now held byth bythe by bythe of this th the commission in the banks be so held Curing the and w lJ 1 arly ealy ae stages of or or the tile of or orUi Th's escrow agreement is I value to the or deal Ui utmost t i ie stock treasury e if q who ie is selling the I it off oft the market all Promo Promo- s keeps I isto is he the time tin Ig n interestS luring during Sr tr in ing to finance the tho treasury the during v cases W We have had many I many havA hay ore wh where e re past st sum Bummer i j j I 1 I refused to escrow the promotion and Personal gation gatlon holdings and a later I has on the part of the commission a usually the reason why the tho th objection has been made to to g the persona holdings We have hayo also had a large number o ot of concerns declare that the they would not do business business' in a a. stat state Where the they could not handle their personal stocks StOck as they desired and amI naturally have had to move on to other pastures This was vas true In the oil boom that was started early CaTly last spring and at that time the worst elements of many oil fields came to 10 tp Utah In the hope of or putting over such deals as the they had been pulling pulling- in Texas Texa and Oklahoma Something like forts of these high pressure salesmen and phoney promoters went put of or tho state statu declaring that they would not operate in a section where the officials era wera eraso so damned technical R about bout letting a few fe rube farmers get stuck IX IN SLIGHT Contrary to the general belief we have to deal with fewer fraudulent mining mi ml- ml ning schemes chemes than in either the oil or the industrials because the mining mining- men as a rule have absolute faith in their holdings and man of them go Just as far as It Is possible for them to go goo before the they try to sell an any stock stork to the public They Tho feel as a rule that they have a good thing and they are not going to distribute it any f farther farther- than Is necessary and few of th them m have objected to escrowing escrowing- their stocks and most ost of the mining companies rECommend rec rae this method f bf f tying tring up the personal the interests for the benefit of ot companies It hit is true that man many mining compa compa- fail nies lues go o brol broke e and many incorporator J to accomplish much but the trouble trouble trou trou- ble lies in the tho fact that so many met mea with an inadequate knowledge of the intricacies of the mining business at attempt at- at tempt t to mine and through their lack of knowledge rather than through any Intention to commit a wron wrong fall During the past nine months it nas has been necessary for the securities comI com corn mission t through U Its secretary re to re reOrganize re- re organize I e and adjust j the business af at- t fairs of or nearl nearly forty companies on account ac account ac- ac count of or the tho filings made being being- inconsistent incon incon- and inadequate to accomplish the purpose the directors have set out to accomplish This has been done clone for these companies largely at theIr reQuest re reQUest re- re quest when they have found that it would be Impossible for them to secure permits under tinder the conditions named In In their filings and the commission has had in mind only the constructive development de de- de- de of ot the toe state in assisting these companies In this way We re have taken the position that it is bettor better o o reorganize a concern and put it on an a S constructive basis in a a. state like Utah Ulah r where we need a 11 maximum of develop develop- ment than t to ti den deny the compan company's s 's application ap ap- ap- ap to sell its stock and ond leaving the organization Uon in a condition cO where it cannot proceed and has little hope of doing business PRESS RECEIVES CREDIT When a large number of ot promoters learned that the Utah state securities act had teeth they began to organize syndicates syndicates syn syn- syn- syn and common law trusts but for for- fortunately for the legitimate companies of ot th the state and the investing public the legislature of or 1921 amended the law so as to cover all classes of organizations from the individual to the corporation and Including investment contracts and other securities Some promoters have taken n th fh thA i vo h 11 I i I I I n. n u C- C force any but the corporate end of or the act But the commission stand ready and willing at all times to go Into the courts and to test its authority under the law not only relative to these organizations but with regard to brokers dealers and agents of every description who promote or sell securities In the state of Utah One thing that has hag been of ot of Inestimable inestimable inesti Inesti- mable value to the state securities com com- since I have been its secretary is the support of the daily dally newspapers and the state press The Tho press through refusing the advertisements of ot these foreign for for- foreign eign concerns has helped us very materIally materially mate mate- to make male them either comply with the law or to stop selling in Utah and we know by their attitude that they are aie going to continue giving us that as as- as The commission is just as much interested interested inter inter- ested In the development of Utah mines as anyone anone can be and will go just as far as to further the mining industry In in- in industry of the state It furthermore realizes that there is only daly one crop of earnings in money each ye yea year f as there Is one crop of hay or grain and ana If It these earnings are are- allowed to be directed into foreign promotion schemes and Inadequate projects it will wiil be Impossible for fr us to secure the greatest amount of real constructive constructive con con- development for our state We Ve need the assistance of every mining operator operator op op- op- op and every broker broter in the state to gIve him the best results in return and I regret very much to say that at this time we meet with entirely too much antagonism antagonism an- an an an- from those interests REPLY SENT TO BAIN DAIN Previous to Wr Mr Hicks Hicks' remarks s a let let- ettel et- et tel ter written by a subcommittee in ing J. J H. H Ball H H. H A. A Strauss and II IL S. S I Joseph to Dr H. H Foster Bain the bureau of mines in reply to the letter letter let let- ter received last week from Dr Bain commenting upon the committees committee's report on the Arentz Aretz bill wa was read and approved by the committee The letter stated that the committee was ab absolutely opposed to the provision permitting location of mining claims before be before be- be fore discovery since the right to 10 location under the Arentz bill prior to discovery would enable locators to tie up for a rather Indefinite period large arge areas of the public domain It declared that while the committee wa was opposed to the Arentz bill as a a. whole it was not opposed oppose to the amendments to the present code NEW ElV YORK UGAR NEW YORK Jan 14 The H.-The The raw ugar market was unchanged ed end no sales saIe were vere reported In the lo local al market with CUbas c st and lind fi freight eight quoted at Ic equal to 3 61 for centrifugal There was only a a. quiet trade In raw sugar I futures s but ti the undertone was wall steady and after advancing 1 to 3 points on trade buy- buy I tag fn and covering prices eased off ocr and closed un unchanged to 1 I point net higher I March llY July Septem Septem- be her ber 2 7 74 septem-I septem The h refined market was steady and unchanged unchanged un unchanged un- un changed at 4 80 to 4 90 for fine fins granulated I II The demand teemed seemed to be less leu active futures were without transaction tion closing unchanged to C Ii points pointe net lower with March fit at t May and CCO July I CHICAGO LIVESTOCK CI CHICAGO Jan 14 U. U S S. S Bureau of Markets Mar sr- sr Cattle Receipts 1000 CP with week ago beef beet steers teera and fat tit lI she e estock stock 1 15 jI to lower bulls buns steady to S lower lower canners and cutters cutter about 1 steady veal calves alves Ito higher stockers and feed teed ers 25 26 to higher Receipts largely i 15 Iii to I lower o e r holdover moderate mostly ugh lighter Let weights weights' I market t closing 25 to lower titan than Ie Fridays Friday's average top bulk bulle 60 I to pISS lower loer bull bUlls desirable 1800 to I Receipts i today's receipts nearly alt all l packers direct compared with I week YagO ago all classes s la s 60 50 tp te higher r IX X GE NEW YORK Jan Tan 14 ForeIgn H. Foreign exchange I Great Britain Demand Demand cables cable Franc Dema Demand 8 4 cables l d 4 cables 4 Belgium Demand hc 0 cables cable 7 Demand 64 ic ci cables e Hern Demand Holland 1 any Y c. c ca cables I 36 G Demand Norway Sweden sweden Demand 2 D Demand ark Demand 19 c. c Switzerland W Demand 19 Spain Demand Demand Greece Demand Greece M Br n a 76 Montreal 94 c. c |