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.
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.
This law has been enacted in six states and a campaign for its
general enactment is under way. But let not the credulous
investor suppose that even such a law would guarantee him against
loss. The Secretary of the American Mining Congress, Mr. James F.
Callbreath, offers the following comment: