36 of 1918 - Amending Chapter 33, Section 878 to X5, stocks and stockbrokers, as enacted March 26, Blue Sky Ordin ROLL CALL
VOTING AYE NAY
Salt Lake City,Utah,__.Apr�1--29.,_..-- ,191_B..
Crabbe.
I move that the ordinance be passed.
Green
Neslen
Scheid `
Mr. Chairman
Result AN ORDINANCE
An ordinance amending Chapter 33 of the Revised Ordinances
of Salt Lake City of 1913, by amending Section 878 of said
ohapter, as amended Marsh 26, 1918, and amending Sections 878x1,
878x2, 878x3, 878x4 and 878x5 of said chapter, as enacted Maroh
26, 1918.
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, as amended March 26, 1918,
be, and the same is hereby amended so as to read as follows:
SECTION 878. It shall be unlawful for any person,
firm or corporation to engage in or conduct the business,
or act in the oapaoity 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, contracting in
his or its own name or for or as agent of another, or for or
on account of another,41shall be deemed a stockbroker and
engaged in the business of stockbroker.
Any person, firm or corporation engaged in said
business of stockbroker, having an office and established
place of business in Salt Lake City, shall obtain a license
to carry on such business, and shall pay for such license
the sum of $25.00 per year.
Any person engaging in said business of stockbroker
not having an office and established place of business in
Salt Lake City, and every itinerant or traveling stock-
broker or curb broker, having no office and established
place of business in Salt Lake City shall pay for such
license the sum of $50.00 per year.
SECTION 2. That Sections 878x1, 878x2, 878x3, 878x4 and
878x5 of Chapter 33 of the Revised Ordinances of Salt Lake City
of 1913, as enacted March 26, 1918, be, and the same are hereby
amended so as to read as follows:
SECTION 878x1. It shall be unlawful for any person,
firm, association or oorporation to engage in or conduct
the business of a stock exchange where stocks are sold on
the floor of the exchange by stockbrokers who are members
of said exchange, or by public display of stock quotations
on a bulletin board or other similar device, or by publio
pall, 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 provided. The license fee for
conducting the business of such stock exchange or such
stockbroker shall be $100.00 per year.
SECTION 878x2. Any person, firm or corporation
applying for a license provided for in the two preceding
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sections, shall file a written statement showing 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
character and integrity of such person or firm, and of the
officers and directors of such corporation or stook
exchange.
Whenever any stockbroker, as defined in Seotion 878,
shall promote the selling or buying of stooks of any
corporation or association in Salt Lake City by means of
advertisements, or through agents, or by general or public
offering, accompanied by statements or inducements tending
to enhance the value of such stock or to encourage the
purchase thereof, such broker shall, at the time of making
original application for license, or thereafter, and before
advertising or promoting the sale of such stocks in the
manner herein provided, file with the License Assessor and
Collector a sworn statement relative to the location,
character and value of the property which all such stooks
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
enoulmbrances on said property; the number of shares of
authorized capital stock of such corporation or association,
the par value of each, the number of shares of promotion
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stock and to whom issued, and the number of shares of
original treasury stock and the number remaining in the
treasury, and the name of each corporation or association
whose stock is so advertised for sale by such broker, and
the officers of each, and shall file any and all prospec-
tuses or oiroulars used or to be used in such promotion,
and such other additional information relating to such
stooks and the property which such stocks represent when-
ever the same is required by the License Assessor and
Collector; provided, that this section shall not apply to
advertisements which contain an offer to buy or sell a
oertain number of shares of a named stock at a given price,
without inducements tending to enhance the price of such
stook or encourage the purchase thereof, nor to offerings
or sales on the floor of a licensed exchange in Salt Lake
City by the owner of such stock, or by a member of such
exchange, or to sales under order of court, or to stook
quotation sheets.
If the License Assessor and Collector finds that any
applicant has made false or misleading statements concerning
the property which such stocks represent, or has falsely
represented the character of such stooks, or if he finds
such person, firm or corporation to b,e an unfit or unsuit-
able person to conduct auoh business, he may refuse to
issue such lioense, and shall thereupon refer such applica-
tion to the Board of Commissioners, together with his
report showing upon what grounds such refusal is based,
and Otis recommendation thereon. Upon receipt of such
application and report from the License Assessor and
Collector, said Board shall act on such application in
regard to granting or denying the same, as it shall deem
just and proper.
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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
association, or is falsely representing or making mislead-
ing statements concerning the stocks of any corporation or
association, or concerning the property which such stooks
represent, while having the same for sale, or while offering
or selling such stocks, or is violating any of the provi-
sions of this ordinance, he shall at once report to the
Board of Commissioners the particular facts in regard to
such matters, or any of them, or any other matter in regard
to which said Board should he advised, together with his
reoommendation in regard to revoking such license, and said
Board, after notice to said licensee, and after hearing, if
requested, shall take such action in regard to the revoca-
tion of such license as it may deem just and right.
SECTION 878zA. It shall be unlawful for any person,
firm or corporation, while engaged in the business of stook-
broker, as defined in Seotion 878, to publish, circulate,
distribute, or in any manner cause to be published,
circulated or distributed, any advertisement, circular,
handbill or other public offering respecting any shares of
stock in any corporation or association which are held,
offered and advertised for sale by such person, firm or
corporation, without first having filed with the License
Assessor and Collector the statement in the form and when
required in Section 878x2.
SECTION 878x5. It shall be unlawful for any person,
firm or corporation in Salt Lake City to sell or offer for
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sale, or to advertise any fictitious, fraudulent, fake or
spurious stock of any corporation or association; and it
shall also be unlawful to falsely represent, or to make
misleading statements concerning the nature and value of
any such stooks; or to knowingly make any representation
of the existence of a foot tending to enhance the value of
anyQ such stocks, qr to irduoe the purchase thereof, without
*yang tiaowledge infoJon sufficient to jus`t'flty a
tge13.ef in;such fa a aoa„ hating knowledge. of any fact
adversely arid mat lallyjaf4oting the value of suc t stocks,
lio .cane" 4..�puch 4615 te. $n i 4e the purchase of such.stocks;
or to falsely l.y rep cent o r e misleading stateme is con-
terning the ehara er, title or value of the property of
any corporation or association when selling or offering for
sale stocks of such corporation in said city.
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.
v
Passed'. by the Board of Commissioners of Salt Lake City,
Utah, _Avg? nth, , 1918.
Mayor . 1
114-1 City Recorder.
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