| Show IDl BLUE SKY KJ DIll BILL UTAH 1 AU I Is BASED tO UN ON J 3 Dern Measure Incorporates rates Most Attractive Parts of Laws Found Workable Elsewhere T THE lIE so so called blue sky bill I introduced yesterday by bySell Sell Senator tor George Dern it is stated is a composite of the blue sky laws of California Arizona and Michigan I The law regulating corporations In Inthe Inthe Inthe the lakes states successfully has weathered feathered all aU the courts Including the United States supreme court cout while I the acts of ot the two to Western estern states also have been thoroughly tested in the district district district dis dis- dis- dis and state courts BEST FEATURES USED It Is stated that the Dern bill contains contains contains con con- all aU of ot the salient features of ot the three statutes named and that that that-It It Is' Is both sane and conservative The process of ot constructing th the I Derrr Dern b ii If it Ms is ls said J Vas s uMer under V wa Y several months 11 previous to the meeting meeting meet meet- ing of the legislature lature and Its various meet meet-I provisions care carefully tully worked out under expert leg legal financial and and industrial advice I It Is declared that the measure was was' framed with the purpose of ot protecting g Ithe J I the investing public from the Operations operations operations opera- opera I of pure purely ly stock selling schemes and at the same time safeguarding the I Interests of legitimate corporations CONTROLS SECURITIES It Is the intention of the Dern bill I to make the bank commissioner also the commissioner of ot securities I Is provided for in the first section which reads as follows tollow I The bank commissioner of the state I of Utah is hereby created and designated commissioner of securities for I Utah and Is hereinafter called under I this act the commissioner and It snail be his duty to collect secure and preserve preserve pre pre- serve complete and detailed inform tion with reference to the issuing sellIng selling selling sell sell- ing or negotiating for the sale of ot any securities in the state of ot Utah and to this end the commissioner shall hall administer administer ad ad- administer minister and provide for th the enforcement enforcement enforce enforce- ce cement ment of ot all the provisions of this act He Is hereby authorized and empowered empowered ered d to make make- such rules and regulations regulations regula regula- as may be necessary to carry carryout carryout carryout out the provisions of ot this act and may I prepare all necessary blanks n to O be I used In Its o and In th the eon con o duct of Its Its Its' business THESE EXEMPTED I The bill excepts from all provisions I any national state county or municipal pal issues foreign or domestic securities ties of ot public or quasi public corporations corporations corpora corpora- 1 I where such corporations are I regulated by the public utilities ComI rom corn I mission hank bank or loan association j stock or that of any corporation organized orI or- or I g for other than gain PROVISIONS OF MEASURE I The bill prohibits the sale ale of ot securities securities ties by investment companies until I there has been filed lied with the commissioner commis commis- I loner abner a sworn statement of ot all the facts tads In connection conne with the company Including its assets and liabilities I provides for tor the preservation use u and furnishing of ot information filed tIIe-d with or secured secure by the commissioner prohibits I false statements or false entries provides provides provides pro pro- vides for tor the filing of Investment companies com com- lanies annually prohibits false or com I wilfully wilfully wilfully wil wil- fully exaggerated statements with reference ref ref- i i to securities or property of cor cor- I I Joint stock associations co co- co partnerships or Individuals provides an annual license fee and bond by I brokers gives Ives the commissioner power to prescribe the manner and form torm in I which brokers brokers' books shall be kept and I for the examination of books and for forthe forthe the suspension lon o of license of brokers under certain conditions requires a aI I written statement to be furnished by brokers to their customers and prohibits prohibits prohibits pro pro- hibits bucketing contracts II ALL INFORMATION PUBLIC All Information obtained by the live I commissioner with reference to any securities s and all records re-coras of ot the tho commIssioner commissioner commissioner com com- j missioner relating to any company Is Isto r I to be open to examination by the public It Is provided that any person who knowingly or wilfully makes a false statement nt or false entry In any nook DOCK of an investment company or brol broker er who makes false tase or a statement InI m In n making the sale sae of stock shall be I I deemed guilty of ot a felony telony and upon I conviction thereof shall hall b be fined not nt more than or si all be he Imprisoned imprisoned In the state penitentiary for not riot more than five years or both such fine and Imprisonment in the tho of the court I |
