forcement of the provisions of this chapter, shall continue to consist of the Superintendent of Banks, who shall be president thereof, the Attorney General, the Rural Credit Commissioner, all of whom shall be members of such Commission during their terms of office, and one other member to be appointed by the Governor and who shall serve for a term of three (3) years, unless sooner removed by the Governor. The member so appointed shall be the executive officer and ex-officio secretary of the Commission and shall devote his entire time and attention to the duties of his office and shall receive a salary of thirty-six hundred ($3,600.00) dollars per annum, payable monthly. He shall at the time of his appointment, subscribe and file the usual oath and furnish a bond in the sum of five thousand ($5,000.00) dollars, to be approved and filed as are the bonds of other State officers. The other members of said Commission shall be entitled to receive for their services, a salary of $1,200.00 per year, payable monthly as the salaries of other State officers are paid; provided, that any member of this Commission who receives $4,000.00 per annum or more as salary or compensation for his services in connection with any other State office, shall not be entitled to receive any additional compensation for services performed as a member of the State Securities Commission. Any three (3) members of which Commission shall constitute a quorum. Such Commission shall have its office in the Capitol, in a room to be furnished and equipped by the State, and all of its records shall be there kept. It shall hold regular monthly meetings on such dates as may be determined by the Commission and may hold special meetings on the call of the executive officer. It shall keep a complete record of all its meetings, its accounts and the business it transacts, and may prepare all necessary blanks to be used in its proceedings and in the conduct of its business.

The executive officer, when acting for the Commission, shall have equal power and authority, subject to the approval of the Commission, and he may be authorized to reject applications subject to review. He shall attend to and perform any and all detail work relative to the Commission. Such Commission shall have power to employ such assistance as may be necessary to carry out the provisions of this chapter. Such Commission shall annually make a report to the Governor at the time and in the manner provided in Sections 6922 and 7067, containing an accurate review of the work of the Commission, a schedule of the permits granted, schedule of the applications rejected, a statement of the receipts and disbursements of the Commission and such other material information as relates to the work of the office.

Section 2. Section 10130 of the South Dakota Revised Code of 1919, as amended by Section 2 of Chapter 310 of the Session Laws of South Dakota for the year 1919 is hereby amended to read as follows:

Section 10130. Company Must File Statement.] Before selling, ofering for sale, taking subscriptions for, or negotiating for the sale in any manner whatever in this State, of any stocks, bonds, investment contracts or service contracts, purchase contracts, membership certificates which purport to create a liability on the part of the issuer, or other securities of its own issue, every investment company, domestic or foreign, shall file in the office of the Commission a statement showing in full detail the plan upon which it proposes to transact business; a copy of all contracts, stocks, bonds or other instruments which it proposes to make with or sell to its contributors or customers, together with a copy of its prospectus and the proposed advertisements of its sale of stocks, bonds, investment contracts, or service contracts, purchase contracts, membership certificates or other securities, which statement shall show

the name, location and main office of the investment company, the names and addresses of its officers and an itemized account of its financial condition, the amount of its assets and liabilities, and such other information touching its conditions and affairs as the Commission may require. No partnership, association or corporation shall be permitted to sell preferred stock within the State of South Dakota if the holders of such preferred stock are not given voting power equally with the holders of the common stock, unless the company shall have and shall undertake and agree to maintain at all times tangible net assets, exclusive of patent rights, trade marks and good will, in an amount at least double the par value of all outstanding preferred stock, nor unless such company shall further undertake and agree not to place any mortgage or other incumbrances upon its property without the consent, at a regular or legally called special stockholder's meeting, of at least threefourths of the preferred stockholders, and unless such preferred stock shall be preferred both as to assets and as to dividends. If such investment company shall be a partnership or an unincorporated association, it shall also file with the Commission a copy of its articles of partnership or association, and all other papers pertaining to its organization. If it be a corporation organized under the laws of this State, it shall also file with the Commission a copy of its articles of incorporation, constitution and by-laws, and all other papers pertaining to its organization. If it shall be an investment company organized under the laws of any other state, territory or government, incorporated or unincorporated, it shall also file with the Commission a copy of the laws of the state, territory or government under which it exists or is incorporated, and also a copy of its charter and the certificate of the proper officer of such state, territory or government, showing that it is authorized to transact business therein; and also copies of its constitution and by-laws and all amendments to such instruments, if any have been made, and all other papers pertaining to its organization. Every such investment company, foreign or domestic, shall pay a certificate fee of one-tenth of one per cent upon the face value of the securities which it may be licensed to sell, up to the amount of fifty thousand ($50,000.00) dollars, and at the rate of two-tenths of one per cent upon the face value of the securities which it may be licensed to sell in excess of fifty thousand dollars ($50,000.00); provided, however, that such certificate fee shall not in any case be more than five hundred ($500.00) dollars, nor less than ten ($10.00) dollars; and in addition thereto, any co-operative association or corporation organized and doing business wholly within this State and any other corporation or association applying for license to sell its stock or securities, whose capital stock does not exceed fifty thousand ($50,000.00) dollars, shall pay a filing fee of fifteen ($15.00) dollars; every association or corporation, not a local co-operative association or corporation, whose capital stock exceeds fifty thousand ($50,000) dollars, shall pay a filing fee of twenty-five ($25.00) dollars.

Section 3. Section 10142 of the South Dakota Revised Code of 1919 is hereby amended to read as follows:

Section 10142. Records Public.] The records of the Securities Commission shall be public records and it shall be the duty of the Commission to preserve such information and to so classify and arrange the same as to facilitate examination by any person affected by matters therein contained, except that the Commission may, in its discretion, withhold information relating to the private affairs of persons or corporations when in its judgment the same shall not be required for the public welfare, or any information relative to any matter that may be at

issue in any court, unless upon an order of court. The Commission may from time to time issue in pamphlet form, or by means of newspaper advertisements or otherwise, any and all information regarding any and all contracts, certificates, stocks, bonds or other securities sold or offered for sale within this State which it deems to be of public interest or advantage. The Commission shall provide for furnishing to those who may apply therefor, any information regarding any investment company or its affairs, which is on file in the office of the Commission, except such as is withheld by the Commission pursuant to the foregoing provisions of this section; and the Commission shall charge therefor approximately the cost of preparing and furnishing such information.

Section 4. Section 10146 of the South Dakota Revised Code of 1919 is hereby repealed, and a new section forming a part of Chapter 13 of Part 12, Title 6 of the South Dakota Revised Code of 1919 is hereby enacted and substituted in lieu of said original section to read as follows:

Section 10146. Contracts in Violation of this Chapter Are Void. Penalty for Aiding in Making Unlawful Sales.] Every evidence of indebtedness or other contract or obligation incurred, made or given for stocks, securities or other obligations sold in violation of any of the provisions of this chapter, are void in the hands of any but a bona fide holder in due course, as defined by the negotiable instruments law, and no action shall be maintained in any court of this State for the enforcement of any such contract or obligation. Every person, firm or corporation aiding or assisting any investment company or dealer or representative, agent or salesman, either directly or indirectly, taking subscriptions for or negotiating for the sale of any stocks, bonds, investment contracts, service contracts, purchase contracts, membership certificates or other securities, except such as are lawfully permitted to be sold within this State, under the provisions of this chapter, shall be guilty of a violation of this Act in the same manner and to the same degree as his or its principal, and shall be subject to the penalties provided by Section 10149 of this chapter, as amended by Section 5 of Chapter 310 of the Session Laws of South Dakota for the year 1919, and as further amended by this Act.

Section 5. Section 10149 of the South Dakota Code of 1919 is hereby amended to read as follows:

Section 10149. Violation-Penalty.] Any person, firm or corporation who shall violate any of the provisions of this chapter shall be deemed guilty of a misdemeanor and upon conviction thereof shall be punished by a fine of not less than two hundred ($200.00) dollars, and not exceeding one thousand ($1,000.00) dollars, or by imprisonment in the county jail for a term of not less than sixty days and not exceeding one year, or by both such fine and imprisonment. It shall be unlawful for any person, firm or corporation to violate or fail to comply with any order, restriction, limitation, or requirement made or imposed by the Commission, and any person, firm or corporation who shall fail or neglect to comply with any order, limitation, restriction or requirement or who shall violate any of the same shall be deemed guilty of a misdemeanor and upon conviction shall be punished as in this section provided.

Section 6. Whereas, a large number of enterprises are being organized at the present time, and whereas the present law is inadequate and whereas, this statute is necessary for the immediate preservation of the safety and support of the State Government and its existing institutions, an emergency is hereby declared to exist and this Act shall take effect and be in force from and after the date of its passage and approval. Approved July 3, 1920.

Soldiers and Sailors

CHAPTER 83.

(S. B. 24.)

RELATING TO EXPENSE OF BURIAL.

AN ACT Entitled, An Act to Amend Section 9963 of the South Dakota Revised Code of 1919, Relating to Expenses of Burial of Deceased Honorably Discharged United States Soldiers, Sailors, Marines or Aviators, and Declaring an Emergency.

Be It Enacted by the Legislature of the State of South Dakota:

Section 1. That Section 9963 of the South Dakota Revised Code of 1919 be and the same is hereby amended to read as follows:

Section 9963. Any honorably discharged United States soldier, sailor, marine or aviator, who shall hereafter die within this State and whose estate shall not be sufficient or whose relatives and friends are unable or unwilling to defray the charges of his funeral, shall be buried at the expense of this State, providing, that such funeral expenses, including cost of burial lot, shall not in any case exceed the sum of one hundred dollars.

Section 2. Whereas, this Act is necessary for the immediate support of the State Government and its existing institutions, an emergency is hereby declared to exist and this Act shall be in force and effect from and after its passage and approval.

Approved June 30, 1920.

State Capitol Commission

CHAPTER 84.

(S. B. 56.)

RELATING TO A HOME FOR THE GOVERNOR.

AN ACT Entitled, An Act Relating to Improvement of the Capitol Grounds at Pierre, South Dakota, and Authorizing the Acquiring of Grounds for a Governor's Home, and Declaring an Emergency.

Be It Enacted by the Legislature of the State of South Dakota:

Section 1. The State Capitol Commission is hereby authorized and directed to prepare plans for a Governor's home, to secure grounds by purchase or condemnation for a site and to connect such site and harmonize same with the present capitol grounds; to prepare the grounds for building, and to present plans for the completed building and improvement at the next regular session of the Legislature. For

this purpose the Capitol Commission shall use funds placed at its disposal by Chapter 322, Laws of 1919.

Section 2. Whereas, this Act is necessary for the immediate support of the State Government and its existing public institutions, an emergency is hereby declared to exist and this Act shall be in force and effect from and after its passage and approval.

Approved July 3, 1920.

CHAPTER 85.

(S. B. 58.)

RELATING TO THE CONTROL OF AUTOMOBILES USED IN STATE BUSINESS.

AN ACT Entitled, An Act Relating to the Use of Automobiles on State Business and Prescribing Certain Powers and Duties for the Capitol Commission in Connection Therewith, and Declaring an Emergency Therefor.

Be It Enacted by the Legislature of the State of South Dakota:

Section 1. The management and control of all automobiles which are used in the transaction of the State's business is hereby placed in the Capitol Commission as constituted by Section 10177 of the Revised Political Code of 1919.

Section 2. It shall be the duty of the said Capitol Commission on or before the first of May of each year to prescribe a rate per mile which shall be paid to those operating privately owned cars on State business. The Capitol Commission may change such established rate at any time any such change shall be deemed necessary in keeping with the actual cost of operation. It shall be lawful for the State Auditor to issue warrants covering automobile expense at the rate so specified by said Capitol Commission upon the sworn statement thereof of parties using such

cars.

Section 3. It shall be the duty of said Capitol Commission to from time to time promulgate such rules and regulations governing and controlling the use of State owned cars as in their judgment shall be deemed necessary for the proper protection of the State's interests.

Section 4. It shall be the duty of said Capitol Commission to perfect contracts for tires, supplies or accessories with the companies handling said supplies when said contracts can be made advantageously covering all State cars.

Section 5. Said Capitol Commission is hereby authorized to delegate supervision over all State owned cars and trucks either to one of its members or to such individuals as it shall deem advisable.

Section 6. All Acts and parts of Acts in conflict with the provisions of this Act are hereby repealed.

Section 7. Whereas, this Act is necessary for the immediate support of the State Government and its existing public institutions, an emergency is hereby declared to exist, and this Act shall be in full force and effect from and after its passage and approval.

Approved June 30, 1920.