Barth v. Klicpera

Is it a violation of the “blue sky law” for an organizer of a corporation, to whom all shares of the capital stock are issued, except two shares to qualify two other persons, and thus enable incorporation, to solicit and make sales of such stock in order to obtain money with which to finance the corporation business, without obtaining the approval of the stock issue by the State securities commission? If so, may a purchaser of such stock assert fraud and have recovery in an action of tort? Answers to these questions will decide issues presented for our review by the writ of error sued out by…