Turning 60: Bud Jacobson, Earl Hastings, and Arizona’s 1951 Securities Act

Abstract

Arizona’s modern securities laws were enacted in 1951. The 1951 Securities Act replaced statutes enacted between 1912 and 1921. Stock swindles in the late 1940s exposed the weakness of these early securities laws. At the time, Arizona’s post-war economy was booming. New business leaders and statesmen emerged who were committed to economic expansion and improved government. Committees were formed to plan for post-war growth and study improvements in Arizona’s laws. One of these was a special committee formed to draft new securities legislation. Through the committee’s work, legislation creating the Arizona Securities Division passed in 1949. That same year, Edward Hastings, who later became an SEC commissioner, was appointed as the state’s first Securities Director. The article describes the background to Hastings’ appointment and introduces the attorneys – Bud Jacobson, Joe Ralston, and Lorna Lockwood – who participated in drafting the 1949 legislation. After Hastings’ appointment, he and Jacobson led the previously formed securities committee in drafting what became the 1951 Securities Act. A 1948 model act prepared by the Investment Bankers Association was used as a starting point. From that, Hastings, Jacobson, and the securities committee used their own insights, SEC comments, and suggestions from the state’s business and legal community, to produce a nonuniform securities act that is unique to Arizona. The article briefly summarizes some of the 1951 Act’s highlights and provides a short overview of the Act’s early effects on Arizona’s securities markets.