Business: Act in Action

For the first time last week the Federal Trade Commission invoked the Securities Act against a company which had already sold a bond issue. The company was Laclede Gas Light Co. (St. Louis), an operating subsidiary of Promoter Harley L. Clarke's Utilities Power & Light. In registering a $3,000,000 bond issue with the Trade Commission, Laclede directors had signed a sworn statement that no suits were pending against the company which would affect the new bonds' value. After the issue had been distributed, the Trade Commission stumbled on the fact that there were...

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