State board bans sale of mining stock

The State Securities Board has issued an order prohibiting further sale of stock in the Marau-Copau Mining Company, Inc., a firm which has been operating in Brady for the last several months. Securities commissioner William M. King ruled that the sale “would not be in compliance with the Securities Act, would not be fair, just, or equitable, and would tend to work a fraud on a purchaser thereof.” County Attorney Aubrey Davee said Thursday that the case has been under investigation here for about 30 days. He added that he has been called for a conference in Austin Friday with the securities commissioner. “I’ll probably have more information on the status of the case when I get back Saturday.” Two other companies are mining sand at plants in Voca and Brady, but Davee said they (San Saba Sand Company and the Heart O’ Texas Mining Corporation) have no connection with the Marau-Copau company. The state board issued a “cease and desist” order against sale of Marau-Copau securities last Friday after a hearing was held in Austin Sept. 1 and 2. The order said the company’s principal officers and directors were represented at the hearing, but the order did not name them. After the hearing, the state board’s order ruled as follows: “1. That William M. King, securities commissioner of the State of Texas, has jurisdiction of the subject matter of such hearing; that the principal officers, directors and employees of the corporation were present at such hearing; that the corporation and above persons were represented by counsel. “2. That common stock of the Marau-Copau Mining Company, Inc., was sold by the officers and directors of the corporation in violation of the Securities Act of Texas. “3. That the principal officers and directors of Marau-Copau Mining Company, Inc., in furtherance of an agreement, promoted a scheme to sell common stock of the corporation, so as to violate or evade the Securities Act, to wit: The issuance of common stock of the corporation to officers and directors purportedly in exchange for pre-incorporation interests held in an association by such officers and directors but in truth and in fact such shares of the corporation were issued and resold to the public for the benefit of the corporation constituting a public sale of securities for which no permit had been issued. “4. That the principal officers and directors of the Marau-Copau Mining Company, Inc., acting individually and as agents for said corporation, have violated the Securities Act by acting as securities dealers without being registered as provided in the Securities Act. “5. That the sale, proposed sale or mention of sale of the securities’ would not be in compliance with the Securities Act, would not be fair, just or equitable and would tend to work a fraud on a purchaser thereof. “Wherefore it is hereby ordered that the sale of securities of Marau-Copau Mining Company, Inc., be, and is hereby prohibited. “Dated this 4th day of September, A.D., 1959.” Austin hearing called on Brady Lake permit A hearing on the City of Brady’s application to appropriate water from Brady Creek will be held by the State Board of Water Engineers in Austin at 2 p.m. Monday, Oct. 19. The City proposes to build a dam two-and-one-half miles west of Brady on Brady Creek to impound 30,340 acre feet of water, and a permit is being asked from the state board to use 4,800 acre feet of water from the lake annually (3,600 acre feet for municipal purposes and 1,200 acre feet for industrial purposes). In its notice of the hearing, the state board said that “all parties interested may appear and be heard. Those opposing the granting of said application should file written protests with the board and the applicant (the City of Brady) at least five days prior to the hearing date, giving their reasons therefor'” Fife News The maize crop, now being combined, is turning out a good yield in most places. Cotton is opening but none has been picked here. The Fife gin is now open and ready as soon as picking begins. Mr. and Mrs. Pablo Cortez are adding a bedroom and a bath to their home. R.E. Briscoe is doing the building. Mr. and Mrs. Ben Farmer and Belinda of Stamford visited in Brady with relatives last weekend. Ben visited Saturday afternoon with Mr. and Mrs. Tom Hickman and Mrs. L.M. Farmer and enjoyed hunting doves while here. 5 Brady golfers win in Del Rio Brady had five prize winners last weekend at Del Rio’s annual Labor Day golf tournament. D.A. Harkrider was runner-up in the first flight (losing to Robert Baker of Del Rio, 2-3) and won a set of woods. George Adkins was runner-up in the fourth flight and also brought home a set of woods. Norman Archer won the consolation of the sixth flight and brought home a golf bag. John Hughes took the consolation of the fifth flight, over Noble Taylor of Del Rio, 1 up, and also won a golf bag. George Carrithers won the fifth flight, 2 up over Ray Pierson of Del Rio, and received a set of irons. Others from Brady in the tournament were Bud Gober, W.T. Archer, Norman Lawler, Jerome Wilkerson, Korky Steffens, Bert Harrison, Harry Priess and B.A. Hallum Jr. PERSONAL MENTIONS Here from Midland Mr. and Mrs. Freddie Johnson and daughter, Denise, of Midland, were weekend guests of his parents, Mr. and Mrs. Ernest Johnson and her parents, Mr. and Mrs. Odis Turner of Melvin. Leaves for TCU Miss Sandra Hargroves, daughter of Mr. and Mrs. Bill Hargroves, left for Fort Worth Saturday where she is a student at TCU. Miss Hargroves is a member of the Zeta Tau Alpha Sorority and will participate in Rush Week. Here from Houston Mr. and Mrs. Nath Turner and daughter, Debbie, of Houston, were visitors in Brady last week and guests of her parents, Mr. and Mrs. W.R. Duncan of Calf Creek. Flies to Europe Marston E. Seward, field engineer for Western Electric Co., left for Europe Aug. 15. He flew from New York to Frankfurt, Germany. At the time he wrote, he had been to France, Greece, Turkey and Italy. When he finishes touring for about six weeks, he will be working in Italy for six months. He has been in Burlington, N.C., for the past two years. Marston is the son of Mr. and Mrs. Tom Seward of Brady. Here from Abilene Mr. and Mrs. Roy Doyle and little daughter, Cecelia of Abilene, former residents of Brady, were Sunday guests of Mr. and Mrs. Tommy Ereckson. The Doyles’ oldest son, Mike, graduated from Abilene High School last May and will enter the University of Oklahoma next week. Here from Washington Mr. and Mrs. William T. Jones and children, Scott, Mark and Noel Paul of Spokane, Wash., were recent guests of Mrs. Jones’ mother, Mrs. James T. Mann. To teach in Melvin Mrs. Ammie Fowler, formerly of Blackwell, has been elected to teach the fifth grade in Melvin. She plans to move to Melvin this week. Enjoy week vacation Mr. and Mrs. George Cude and Sandra returned home Sunday after a week’s visit in Crosbyton, Dimmitt and Pecos where they visited relatives.

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