LAWS TO PROTECT INVESTORS - Stories from Everybody's Magazine - 15 - Various

POST-OFFICE PROTECTION INADEQUATE Section 1. Any person who knowingly makes or publishes in any way whatever, or permits to be so made or published, any book, prospectus, notice, report, statement, exhibit or other publication of or concerning the affairs, financial condition or property of any corporation, Joint-stock association, co-partnership or individual, which said book, prospectus, notice, report, statement, exhibit or other publication, shall contain any statement which is false or wilfully exaggerated or which is intended to give or which shall have a tendency to give, a less or greater apparent value to the shares, bonds or property of said corporation, joint-stock association, co-partnership or individual, or any part of said shares, bonds or property, than said shares, bonds or property or any part thereof, shall really and in fact possess, shall be deemed guilty of a felony, and upon conviction thereof shall be imprisoned for not more than ten years or fined not more than ten thousand dollars, or shall suffer both said fine and imprisonment.

LAWS TO PROTECT INVESTORS

A plan for the protection of the investor by statute is embodied in a model law drafted by the American Mining Congress of Denver, and recommended for general passage:

AN ACT.

To Prohibit the Making or Publishing of False or Exaggerated
Statements or Publications of or Concerning the Affairs,
Pecuniary Condition or Property of Any Corporation, Joint Stock
Association, Co-partnership or Individual, Which Said Statements
or Publications Are Intended to Give, or Shall Have a Tendency to
Give, a Less or Greater Apparent Value to the Shares, Bonds or
Property, or Any Part Thereof of Said Corporation, Joint Stock
Association, Co-partnership or Individual, Than the Said Shares,
Bonds or Property Shall Really and in Fact Possess, and Providing
a Penalty Therefor.