NAB reports (Mar-Dec 1933)

(b) or for any person to make such offer to sell or to solicit or accept an offer to buy in interstate commerce through the use or medium of any book, magazine, newspaper, or similar publication, or by any circular, advertisement, or printed, written, or other graphic communication or document, or by any spoken communica¬ tion carried or transmitted through or by such mails or means or instruments of transportation or communication, or any of them; (c) or to carry or cause to be carried in interstate commerce, by any means or instruments of transportation, for the purpose of sale or for delivery after sale, either directly or through the medium of another, any security not issued by a foreign government or political subdivision thereof; (d) or for any person to sell or offer for sale or to accept an offer to buy or to announce or advertise in the United States any security of a foreign government or a political subdivision thereof ; Provided, That the provisions of this section do not apply to the securities and transactions exempted by sections 11 and 12 of this Act. [Certain Information to Accompany Advertising or Circularization of Securities] Sec. 8. That it shall be unlawful to carry, transmit, or cause to be carried or transmitted, in interstate commerce, by use of the United States mails or by any means or instruments of transporta¬ tion or communication, any written, printed, or other graphic com¬ munication or document, or by any spoken communication, an¬ nouncing, offering, or advertising for sale any securities subject to the provisions of this Act, unless such communication or document contains the following information concerning the security so offered: [Exempt Securities] Sec. 11. That, except as hereinafter otherwise expressly provided, the provisions of this Act shall not apply to any of the following classes of securities: (a) Any security issued or guaranteed by the United States or any Territory or insular possession thereof, or by the District of Columbia or by any State of the United States or political sub¬ division or agency thereof. (b) Any security issued by and representing an interest in or a direct obligation of any common carrier or other public utility subject to regulation or supervision as to the issue of its securities by a commission, board, or officers of the Government of the United States; or any such security issued by any national bank; or by any corporation created and controlled by and acting as an instru¬ mentality of the Government of the Untied States pursuant to authority granted by the Congress of the United States: Provided, That nothing in this Act shall relieve any of the organizations men¬ tioned in this subsection from submitting to the respective super¬ visory units of the Government of the United States, in such manner and form as may be required by the respective units, all informa¬ tion, reports, or other documents that are required under the provi¬ sions of section S of this Act, and such additional information, reports, and documents as are now or may hereafter be required by other Acts of Congress or by rules and regulations pursuant thereto of the respective units: And provided further, That all such organizations mentioned in this subsection shall nevertheless be required to comply with the provisions of section 8 of this Act. (c) Any security issued by a corporation organized exclusively for religious, educational, benevolent, fraternal, charitable, or re¬ formatory purposes and not for pecuniary profit, and no part of the net earnings of which inures to the benefit of any person, private stockholder, or individual. (d) Bonds or notes secured by mortgage upon real estate, im¬ proved or about to be improved by a residential structure, when the total encumbrances against any single property so mortgaged, including the mortgage securing the bonds and notes exempted by this paragraph, do not exceed $25,000. (e) Any security, other than common stock, providing for a fixed return, which has been outstanding and in the hands of the public for a period of not less than five years, upon which no default in payment of principal, or failure to pay the return fixed, has oc¬ curred for a continuous immediately preceding period of five years, when issued by a Derson, corporation, or other entity having a total capital stock issued and outstanding not in excess of $100,000. [Exempt Transactions] Sec. 12. That, except as hereinafter otherwise expressly provided, the provisions of this Act shall not apply to any of the following transactions: (a) Judicial, executor’s, administrator’s guardian’s, or conserva¬ tor’s sale, or any sale by a receiver or trustee in insolvency or bankruptcy. (b) Sales by or for the account of a pledge holder or mortgagee selling or offering for sale or delivery in the ordinary course of busi¬ ness and not for the purpose of avoiding the provisions of this Act, to liquidate a bona fide debt, a security pledged in good faith as collateral for such debt. [Unlawful Advertising Through Use of Mail or Otherwise] Sec. 14. That it shall be unlawful for any person, firm, cor¬ poration, association, or any other entity to carry or cause to be carried or transmitted in interstate commerce, by or with any means or instruments or agency of transportation or communica¬ tion, any offer to sell or deliver, directly or indirectly, or to accept an offer to buy, through the use or medium of any book, magazine, newspaper, publication, circular, advertisement, or other printed, written, or spoken communication, when such book, magazine, newspaper, publication, circular, advertisement, or any printed, written, or other graphic or any spoken communication is ad¬ dressed or otherwise transmitted to any person at any place in any State or Territory of the United States or the District of Columbia, where at that time it is unlawful to sell, offer for sale, tender for sale or delivery, or to solicit subscriptions or orders for such security or securities. The exemptions contained in sections 11 and 12 of this Act shall not apply to the provisions of this section (14). [Penalty for Violation of Act] Sec. 17. That whoever shall willfully violate any of the provi¬ sions of this Act, or the rules and regulations promulgated by the Commission pursuant thereto, shall upon conviction be fined not more than $5,000 or imprisoned not more than five years, or both; and any officer, director, or agent or any corporation who know¬ ingly participates in such violations shall be punished by a like fine or imprisonment, or both. QUOTA FIGURES AS OF MARCH 25 According to a recent release of the Federal Radio Commission (No. 8266) radio broadcasting facilities, in terms of quota units, as of March 25, were distributed between zones and states within the zones as follows: ZONE 1 ± Quota due State Due Assign. ± Units ± % N. Y . . 35.07 37.95 +2.88 + 8 Mass . . 11.84 10.46 —1.38 — 12 N. J . . 11.26 11.53 +0.27 + 2 Md . . 4.55 4.20 —0.35 — 8 Conn . . 4.48 3.60 —0.88 — 20 P. R . . 4.30 0.50 —3.80 — 88 Me . . 2.22 2.24 +0.02 + 1 R. I . . 1.91 1.40 —0.51 — 27 D. C . . 1.35 1.30 —0.05 — 4 N. H . . 1.29 0.92 —0.37 — 29 Vt . . 1.00 0.64 — 0.36 — 36 Del . . 0.67 0.62 —0.05 — 7 V. I . . 0.06 —0.06 —100 Total . . 80.00 75.36 —4.64 — 6 ZONE 2 Pa . . 27.63 20.32 —7.31 —26 Ohio . . 19.07 19.29 +0.22 + 1 Mich . . 13.89 10.63 —3.26 —23 Ky . . 7.50 8.50 + 1.00 + 13 Va . . 6.95 9.50 + 2.55 +37 W. Va . . 4.96 5.20 +0.24 + 5 Total . . 80.00 73.44 — 6.S6 —.8 ZONE 3 Tex . . 16.22 22.67 + 6.45 + 40 N. Car . . 8.82 8.15 — 0.67 8 Ga . . 8.10 8.15 + 0.05 -+ 1 Ala . . 7.37 6.32 — 1.05 — 14 Tenn . . 7.29 12.80 + 5.51 + 76 Okla . . 6.67 8.44 + 1.77 + 27 La . . 5.85 8.39 + 2.54 + 43 Miss . . 5.60 3.25 — 2.35 — 42 Ark . . 5.16 4.70 — 0.46 — 9 S. Car . . 4.83 2.00 — 2.83 — 59 Fla . . 4.09 8.45 + 4.36 + 107 Total . . 80.00 93.32 +13.32 + 17 Page 20