25 of 1918 - Amending Chapter 33, Section 878 to X7, sale of stocks and governing stockbroker establishments-Blue ROLLCALL 114,,,,000.,E..,MEWS
VOTING AYE NAY
Salt Lake City,Utah, I,ar.e.h.1.8., ,191._8...
Crabbe S- j move that the ordinance he passed.
Green
Neslen __— �i�
Scheid ,...a, G�/1, 1,
I- l/
Mr. Chairman
Result
AN ORDINANCE
An ordinance amending Chapter 33 of the Revised Or.;-inances
of Salt Lake City of 1913, by amending Section. 878 of said
chapter, and by adding in and to said chapter seven new sections
to be known as Sections 878x1. 878x2, 878x3, 878x4, 878x5,
878x6 and 878x7.
Be it ordained by the Board of Commissioners of Salt
Lake City, Utah:
SECTION 1. That Section 878 of Chapter 33 of the Revised
Ordinances of Salt Lake City of 1913, be, and the same is
hereby amended so as to read as follows:
SC'TTIOId 878. It shall be unlawful for any person,
firm or corporation to engage in or conduct the business,
or act in the capacity of stockbroker within the limits
of Salt Lake City without first having obtained a license
therefor as in this chapter provided.
Any person, firm or corporation who or which for a
commission or other compensation, engages in, conducts, or
negotiates the buying and selling and offering for sale,
or buying or selling or offering for sale of stocks,
shares, securities or evidences of stocks of corporations
or associations, or representatives of value #111WW6Tx15y
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xcltxx-u-sF xaxttxx$at , contracting in his or its own name
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or for or as agent of another, or for or on account of
another, shall be deemed a stockbroker and engaged in the
business of stockbroker.
Any person, firm or corporation engaged in said busi-
ness of stockbroker shall obtain a license to carry on such
business, and shall pay for such license the sum of • 25.00
per year.
SECTION 2. That Chapter 33 of the Revised Ordinances of
Salt Lake City of 1913, be, and the same is hereby emended by
adding in and to said chapter seven new sections to be icnown as
; Sections 878x1, 878x2, B78x3, B78x4, 878x5, 878x6 and 878x7,
said new sections to read as follows:
SECTION 878x1. It shall be unlawful for t..ny person,
firm, association or corporation to enzage in or conduct
the business of a stock exchange where stocks are sold on
the floor of the exchange by stockbrokers abc are members
or
of said exchange, „by public call, or for conducting the
business of a stockbroker where stocks are sold by means
of public display of stock quotations on a bulletin board
or other similar device or by public call, without first
having obtained a license therefor as in this chapter pro-
. vided. The license fee for conducting the business of a
• stock exchange shall be ,400.00 per year.
SECTION 878x2. Any person, firm or corporation applying
for a license provided for in the two preceding sections,
shall file a written statement under oath shooing the
residence of such person, the members composing such firm
and the nature of the interest of each, the officers of
such corporation and where incorporated, and the managers
of such stock exchange, and the place of business of such
person, firm, corporation or exchange, and shall furnish
the License Assessor and Collector information as to the ,
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character and integrity of such person or firm, and of the
officers and directors of such corporation or stock exchange.
All applications for a license to conduct and operate a
stock exchange shall also contain a statement giving the
name of the corporation or association, the officers and
directors thereof, and the location, character and value of
the property, and whether the same is bonded, and the title
of the corporation or association thereto, the number of
• shares of capital stock, the par value of each, and the
number of shares remaining in the treasury, in all cases
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where the stock of such corporation or association is to be
• listed or sold on such exchange where such stock has not
• been listed on an existing stock exchange in Salt Lake City
prior to January 1, 1918. Similar reports of any new stock
shall be made by such exchange whenever such stock is
listed.
All persons applying for a license to engage in the
business of stockbroker, as defined in Section 878, before
• selling, buying or negotiating the buying or selling of
stocks of any corporation or association whose stock was not
• listed on an existing stock exchange in Salt Lake City prior
to January 1, 1918, unless such stock has been reported by
said exchange, shall furnish information relative to the
location, character and value of the property which such
stocks represent, and the title of such corporation or
association in said property; the extent to which such
property has been developed, and describing the improvements
thereon, whether the same is a producing property and the
• output thereof, and what, if any, dividends have been paid
by said corporation or association, and describing any
encumbrances on said property; the number of shares of
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authorized capital stock of such corporation or association,
the par value of each, and the number of shares remaining
• in the treasury, and the name of each corporation or asso-
ciation whose stock is advertised for sale by such broker,
and the officers of each, and such other information relat-
ing to such stocks as the License Assessor and Collector
may require.
The license Assessor and Collector shall have the right
to refuse to issue such license if he finds that any appli-
cant has made false or misleading statements concerning the
property which such stocks represent, or has falsely repre-
sented the character of such stocks, or if he finds such
person, firm or corporation to be an unfit or unsuitable
person, firm or corporation to conduct such business;
provided, that any person. firm or corporation who or which
is denied a license shall be entitled to appeal from the
• decision of the License Assessor and Collector to the Board
of Commissioners, and said Board shall upon a hearing have
power to grant or refuse said license.
SECTION 878x3. If it shall be made to appear to the
License Assessor and Collector that any person firm or
corporation licensed under the terms of this ordinance is
selling or offering for sale, or advertising any fictitious,
fraudulent, fake or spurious stocks of any corporation or
st tements
association, or is falsely representing or making misleading,
concerning the stocks of any corporation or association, or
concerning the property which such stocks represent, while
• having the same for sale, or while offering or selling such
stocks, then the License Assessor and Collector may revoke
such license, and shall report such revocation and all facts
to the Board of Commissioners, and said Board upon the peti-
tion of the licensee shall have the right to set aside the.;
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revocation of the License Assessor and Collector or affirm
the same. Tho Lciense Assessor and Collector may call upon
the City Auditor for such assistance as he may require in
investigating the value of all such stocks or prm;erty, or
financial standing of such company whenever an examination
of books is required to determine such facts.
SECTION 878x4. It shall be unlawful for any person,
firm or corporation, while engaged in the business of stock-
, broker as defined in Sec ,ion 878, to publish, circulate,
distribute, or in any manner cause to b e published, circu-
lated. or distributed., any advertisement, circular, handbill,
letter, card or other announcement respecting any shares of
stock or evidences of stock in any corporation or associa-
tion which care held or offered for sale by such person,
firm or corporation, that does not contain a true statement
of the number of shares of authorized capital stock of such
corporation or association, the ,oar value of each, the
number of shares in the treasury, the title of such raorpo-
ration or association to the property represented by such
stock, and describing any encumbrances ead,itinL, Thereon.
SECTION 878x5. It shall be unlawful for any person,
firm or corporation in Salt L,_ke City to sell or offer for
sale any fictitious, fraudulent, fake or spurious stock of
any corporation or association, and it shall also be unlaw-
ful to falsely represent or to make misleading statements
concerning the nature and. value of any such stocks, or to
falsely represent or make misleading statements concerning
the character, title or value of the property of any corpo-
ration or association when selling or offering for sale
stocks of such corporation or association in said city.
SECTION 878x6. It shall be unlawful for any person,
.firm or corporation in Sclt Lake City to offer for sale at
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public auction or by public display of stock quotations or
by advertisement any fictitious, fraudulent, fake or spurious
stocks of any corporation or association; c,nd it shall also
be.unlawful in offering stocks or corporations or associa-
tions for sale at public auction or by public display of
stock quotations or by advertisement, to fr_lsely represent
or to make misleading statements concerning the nature and
value of stocks of any corporation or association, or to
falsely represent or to make misleading statements concern-
ing the title, character or value of the property of such
corporation or association when offering or selling such
stock.
SECTION 878x7. t'_ny person, firm, association or cor-
poration violating any of the provisions of Sections 878,
878x1, 878x2, 878x3, 878x4, 878x5 and 878x6, shall, upon
conviction thereof, be punished by a. fine not exceeding
"$299.00, or by imprisonment in the City Jail for a period
not longer than six months, or by both such fine and
imprisonment. The court may, in imposing a fine, enter as
a part of the judgment that the defendant in default of the
payment of the fine, may be imprisoned in the City J:..il for
a period not exceeding thirty days.
SECTION 3. In the opinion of the Board of Commissioners, it
is necessary to the peace and safety of the city that this
ordinance shall become effective immediately.
SECTION 4. This ordinance shall take effect upon its first
• publication.
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Passed by the Board' of Commisi3ioners of 3alt Like City,
Utah, MLLroh 26th ,
IVIayor .
City Recor et.
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