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Biennial Report of the ATTORNEY GENERAL of the STATE OF COLORADO Years 1949-1950 JOHN W. METZGER At-torney General Publication Approved by James A. Noonan, Controller ATTORNEYS GENERAL OF COLORADO From the Organization of the State A. J. Sampson................................................ -........................... 1877-1878 Charles W. Wright.................................................................. 1879-1880 Charles H. TolL. ....................................................................... 1881-1882 David F. Urmy.......................................................................... 1883-1884 Theodore H. Thomas ................................................................ 1885-1886 Alvin Marsh .............................................................................. 1887-1888 Samuel W. Jones...................................................................... 1889-1890 Joseph H. Maupin.................................................................... 1891-1892 Eugene Engley.......................................................................... 1893-1894 Byron L. Carr............................................................................ 1895-1898 David M. CampbelL ................................................................. 1899-1900 Charles C. Post.......................................................................... 1901-1902 Nathan C. Miller ...................................................................... 1903-1906 William H. Dickson.................................................................. 1907 -1908 John T. Barnett ........................................................................ 1909-1910 Benjamin Griffith .................................................................... 1911-1912 Fred Farrar................................................................................ 1913-1916 Leslie E. Hubbard.......... -......................................................... 1917-1918 Victor E. Keyes ........................................................................ 1919-1922 Russell W. Fleming.................................................................. 1923 Wayne C. Williams.................................................................. 1924 William L. Boatright .............................................................. 1925-1928 Robert E. Winbourn................................................................ 1929-1930 JohnS. Underwood.................................................................. 1930 Clarence L. Ireland.................................................................. 1931-1932 Paul P. Prosser.......................................................................... 1933-1936 Byron G. Rogers ...................................................................... 1936-1940 Gail L. Ireland.......................................................................... 1941-1944 H. Lawrence Hinkley.............................................................. 1945-1948 John W. Metzger...................................................................... 1949-1950 2 REGISTER OF DEPARTMENT OF LAW 1949-1950 DIVISION OF LEGAL AFFAIRS JoHN W. METZGER, Attorney General 1JosEPH E. NEWMAN, Deputy Attorney General 2 ALLEN MooRE, Deputy Attorney General FRANK A. WACHOB, First Assistant Assistant Attorneys General ROBERT BUGDANOWITZ PETER J. LITTLE 3ROBERT L. CLOSE DoNALD C. McKINLAY VINCENT CRISTIANO KENNETH M. MciNTOSH RAYMOND B. DANKS 4THOMAS w. NEVIN PAUL M. HUPP HARRY H. RusTON JOHN E. HYLAND WENDELL P. SAYERS SIDNEY A. JOHNSON c. M. SOMERVILLE JOHN LAGUARDIA BEN F. STAPLETON, JR. 5GEORGE K. THOMAS ANN G. LANDY Administrative Secretary 6JosEPHINE J. BARRows WILMA F. CROSKEY EDITH HEZMALHALCH ELIZABETH v. KITTO MARY D. PoPE Stenographers 1Resigned as Deputy. Appointed Assistant 8/1/49 2Appointed Assistant 5/21/49, and Deputy 8/1/49 •Appointed 5/1/50 'Resigned 4./1/49 •Resigned 3/31/59 •certified to office 11/21/49 3 !..lEGISLATIVE REFERENCE OFFICE ALLEN MooRE, Director CLAIR T. SIPPEL, Administrative Secretary DIVISION OF SECURITIES JoHN W. METZGER, Ex-Officio Commissioner of Securities CuRTIS WHITE, Commissioner RICHARD B. FoLEY, Assistant Commissioner INHERITANCE TAX DEPARTMENT HARRY H. RusTON, Inheritance Tax Commissioner CATHERINE H. CouRSEY, Administrative Assistant DAVID CREGER, Inheritance Tax Analyst MICHAEL O'HARA, Auditor FRED G. HuNT III, Appraiser JoHN R. P. WHEELER, Appraiser ANN CoGAN, Clerk MRs. VERA B. DECou, Clerk MRs. MARY SPENCER, Clerk MRs. ELNORA VEITENGRUBER, Clerk 4 BIENNIAL REPORT OF STATE OF COLORADO OF THE ATTORNEY GENERAL ScHEDULE I January 10, 1951. To His Excellency, WALTER W. JOHNSON, Governor of Colorado. Sir: In compliance with statutes relating thereto, I herewith submit the Biennial Report of the Attorney General for 1949-1950. JOHN W. METZGER, Attorney General. REPORT OF THE DIVISION OF SECURITIES for the period January 1, 1949, to December 31, 1950 1949 1950 Receipts from fees ........... ·--------------------------$ 5,973.00 $ 7,047.50 Expenditures ---------------------------------------------- 13,470.51 13,907.13 Original prospectuses filed-----------·------------ 56 95 Renewal prospectuses filed------------------------ 46 47 Supplemental prospectuses filed -------------- 8 17 Dealers' registrations in effect at end of each year---------------------------------------------- 151 162 Salesmen's registrations in effect at end of each year__________________________________________ 326 359 The decline in the offering of new issues of securities by well established companies, noted in the report of this Division for the years 1947-1948, has continued. Likewise, offerings of securities by promotional enterprises have continued to increase, as predicted in the preceding report. This increase was particularly evident during the year 1950 and is evidenced in part by a comparison with the number of dealers' and salesmen's registrations in effect at the close of the year 1946, the first full year of business following the 5 6 BIENNIAL REPORT termination of World War II. At the end of that year, 90 dealers' and 164 salesmen's registrations were in effect. As noted above, 162 dealers' registrations and 359 salesmen's registrations were in effect at the close of the year 1950, increases of 80% and 119% respec tively. This substantial increase in the number of persons engaged in the securities business is accounted for largely by new promo tional ventures engaged in offering shares of stock for sale to the public. Attention is again called to. the fact that the Colorado statutes relating to the issuance and sale of securities are inadequate and antiquated. Civil suits seeking injunctions prohibiting the further sale of securities were filed against Spectro Manufacturing & Sales, Inc., Business Title Guaranty Co., Kirk Uranium Corporation and e 'Tobyne Oil Company. Injunctions were obtained by consent in each suit. The dealer's registration of Colorado Placers, Inc., was revoked after a formal hearing, and an appeal to the District Court from the order of revocation subsequently was dismissed. A convic tion was obtained against one George Kelly on charges of confidence game arising out of the sale of securities. This conviction was upheld on appeal to the Colorado Supreme Court. Acknowledgment is given to the Attorney General and to his assistant, Mr. Donald C. McKinlay, for the capable assistance rendered to this department in the foregoing litigation. The personnel of the department consists of Curtis White, Securities Commissioner; Richard B. Foley, Assistant Securities Commissioner, and Rhoda Son, secretary. LEGISLATIVE REFERENCE OFFICE The Legislative Reference office was established by an act of the General Assembly approved May 6, 1927. The office .has two primary functions: legislative reference work and bill draft ing for members of the Colorado General Assembly and the Governor. Legislative Reference Work-The office maintains a legislative informational service for members of the General Assembly, state departments and agencies, and the public. The purpose of this service is to make available studies and information on legislative subjects and the laws of other states. A small but select legislative library is maintained. Office facilities are also available for special reports prepared at the request of individual legislators and legis lative standing, special and interim committees. Bill Dra[t1"ng: Assistance in bill drafting and advice on mat ters of legislative procedure and forms of bills, resolutions and amendments are given. Since the establishment of the office approxi mately ninety per cent of all legislation introduced in the various General Assemblies has gone through the office at one time or another. The office, however, avoids offering recommendations as to the desirability of any proposed legislation. ScHEDULE II LIST OF ALL CASES, PENDING, AND DISPOSED OF, IN ALL COURTS 1949-1950 CASES IN THE SUPREME COURT OF THE UNITED STATES Nos. 17 and 18. Julius· A. Wolf, Petitoner, vs. The People of the State of Colorado. On writ of certiorari. State of New York petitioned to intervene as amicus curiae. Certiorari denied. CASES IN THE UNITED STATES CIRCUIT COURT OF APPEALS No. 255. Colorado Interstate Gas Company, et al. vs. Federal Power Commission, et al. Gas refunds. CASES IN THE UNITED STATES DISTRICT COURT No. 136. The United States of America vs. Robert L. Wilkinson, Assessor of Kit Carson County, et al. Land Board matter. No. 1928. Jacques Adler, et al. vs. Ralph Nicholas,