Page:United States Statutes at Large Volume 48 Part 1.djvu/111

 73d CONGRESS. SESS. I. CH. 38. MAY 27, 1933 . or communication in interstate commerce or by the use of the mails, di rectly or in direct ly- (1) to employ any device, scheme, or artifice to defraud, or Unlawful practices, transactions, etc ., in (2) to obtain money or property by means of any untrue sale of securities. statement of a material fact or any omission to state a material fact necessary in order to make the statements made, in the light of the circumstances under which they were made, not mislead- ing, or (3) to engage in any transaction, practice, or course of busi- ness which operates or would operate as a fraud or deceit upon the purchaser. (b) It shall be unlawful for any person, by the use of any means Unlawful advertise- or instruments of transportation or communication in interstate meat of securities. commerce or by the use of the mails, to publish, give publicity to, or circulate any notice, circular, advertisement, newspaper, article, letter, investment service, or communication which, though not purporting to offer a security for sale, describes such security for a consideration received or to be received, directly or indirectly, from an issuer, underwrit er, or de aler, wit hout ful ly disclo sing the receipt, Receipt of consider- whether past or of such consideration and the amount ation and amount to prospective, be discl osed. thereof. (c) The exemptions provided in section 3 shall not apply to the Exempted securitie s, pr ovisions of this s ection. Ante, p. i5. 85 STATE CONTROL OF SECURITIES State control of se- curities. Jurisdiction of corn. i ssions . Six. 18 . Nothing in this title shall affect the jurisdiction of the securities commission (or any agency or office performing like functions) of any State or Territory of the United States, or the District of Columbia, over any security or any person. SPE CIAL POW ERS OF C 031MI SSIO N Special , pow ers of Commission . SEc. 19 . (a) The Commission shall have authority from time to Prescribe regula- time to make, amend, and rescind such rules and regulations as may ti post, P» sos_ be necess ary to ca rry out t he provis ions of t his title, includi ng rules and regulations governing registration statements and prospectuses Registration state- for various classes of securities and issuers, and defining accounting mennts and prosper and trade terms used in this title. Among other things, the Commis- sion shal l have au thority, for the p urposes o f this ti tle, to p rescribe Prescribe farms. the form or forms in which required information shall be set forth, the items or details to be shown in the balance sheet and earning statement, and the methods to be followed in the preparation of Preparation of ac- accounts, in the appraisal or valuation of assets and liabilities, in the C oun ts' appra ising, etc ' determi nation of de precia tion a nd dep letion, in th e diff erenti ation of recurrin g and non recurring income, in the d ifferenti ation of invest- ment and operating income, and in the preparation, where the Com- mi ssion dee ms it nec essary or desirabl e, of co nsolidate d balance sheets or income accounts of any person directly or indirectly controlling or cont rolled by th e issu er, or any p erson u nder d irect or ind irect common control with the issuer ; but insofar as they relate to any Common carrier. co mmon c arrier subje ct to the pr ovisio ns of s ection 20 of the I nter- Ru les af fecting. state Commerce Act, as amended, the rules and regulations of the Vol. 24,p .3ss;U.S.C ., Commission with respect to accounts shall not be inconsistent with P. 1668 . the requirements imposed by the Interstate Commerce Commission under authority of such section 20. The rules and regulations of the Rules effective on Commission shall be effective upon publication in the manner which Pu bli cat iono the Commission shall prescribe. (b) For the purpose of all investigations which, in the opinion of Power to summon witnesses, production the Commission, are necessary and proper for the enforcement of of books, etc. this title, any member of the Commission or any officer or officers