The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1911-02-08

Against - Allen, Oalley, OcCdmp.
Ellis, Ewing, FEEDER, Frey. Graham.
Hyer, Kelley, Keraus, LANG, Malone,
Martin, Mercer, Morris, Mulroy, Noble,
O'Connor, Orr, Parker, Schlicher,
Shields, Thomas, Turner, Wilson of
Greeley, Woodbury., Yates-2S
Those not voting-Emerson, Jackson,
Wilson of Marshall.
Dr. Goddard in the Chair.
DIR. Goddard of Leavenworth, a
Democrat, was called to the chair to
preside over the house in committee
of the whole Tuesday afternoon. The
doctor was there with the goods as
presiding officer. He steered the house
through rather stormy session, show
ing capacity and fairness. During the
discussion of certain bill two mem
bers who had held the floor more or
less during the afternoon were on their
feet at the same time. The doctor
recognized one of them and then
turning to a newspaper man who
stood beside him said: "Of two evils,
have chosen the lesser one"
The house considered an important
bill Tuesday afternoon by Matson of
Sedgwick providing for the rigid in
Spection of investment companies m
the interest of the people at large and
investors. The bill was opposed by
some of the members and Stone of
Shawnee made speech against it.
Brown of Kingman, Speaker Buck
man and Matson defended the bill.
Buchanan, in his speech, declared that
the state inspected the banks, the
railroads and many other corporations
and yet allowed hot air merchants
and sellers of blue sky to come into
the state in large numbers and sell
worthless shares of stock to Kansas
people without restraint. The bill was
passed on to third reading subject to
amendment and debate.
This measure is the result of Bank
Commissioner Dolley's crusade against
fake investment companies that have
reaped rich harvest in the past from
the people of this state. Mr.. Dolley es-
tabliShed, on his own account, a bureau
Of information about stock companies,
that has been patroniZed by people in
all sections of the country and attract
ed the attention of the papers and mag
aZineS east and west. Mr. Dolley left
Topeka tonight to go to Cleveland, o..
where he has been summoned to appear
before the federal grand jury to give
information about fake stock compan-
les. This jury will investigate the prae-
tice that has grown in this country
until the postmaster general estimates
the contribution of the people to these
concern at $50 millions of dollars
Wettaclx'S Objections Were Considered
Representative Wettack of Mont
gomery discovered certain features of
the DILL TO WHICH he SlIGIuOuSly OO-
jected without avail at the morning
session, but which objections were
finally at the afternoon session taken
seriously by a sufficiently large number
of members to carry substitute mo-
ton to the effect that the bill be re-
ported back to the house. subject to
amendment and debate, which will
give all the members a chance to fur
Their consider the merits of and objec-
tions to the bill.
Mr. Wettack's chief objections to the
bill were that it subjected every cor
poration doing business of any kind in
the state to an examination by the
bank department at the company's ex-
pense. The bill purports to be a bill
to examine any company which sells
any kind of stocks, bonds or securities
of any kind, but it further provides in
the first section that every corporation
doing business Of any kind il this state
shall be known for the purpose of this
act as a domestic investment COM
pany.
Section ten provides that a bank
commissioner shall have general SUI
pervision and control over all invest
ment companies doing business in this
state and such investment company
shall be subject to examination by the
bank commissioner.
The first section makes all corpora
tons Domestic Investment com
panies." The chief objection urged to
the bill by Mr.. Wettack was that it
placed too great an arbitrary power
in the hands of the bank department;
that the abuse of such power at some
time was eminently probable: that 1t
sought to substitute the brains of the
bank department for the brains of the
people. Mr.. Wettack stated that this
bill clearly illustrated the necessity of
amendment to the game law which
would provide for closed season dur
ing the legislative session for the leg
islators who Unfortunately go gun
ming for corporations Of every charac-
ter in the state. None of the members
had any objection that would seek to
prevent the motive to prevent wildcat
mining and other schemes of a highly
speculative nature; but after discus
sion had proceeded at considerable
| length the objection presented itself
to members that in order to accom-
plish this end it was not necessary to
make all corporations, whether they
be mining, milling, brick, grocers, etc,
go through an examination by the
| bank department, and this bill will
probably be passed with some amend
ments which will probably preserve
the original features of the bill SO far
as they related to the protection of
the people against swindlers, but will
not submit all corporations in the state
to examination and inspection by the
| bank department.
The First Prohibitory Bill.
The first consideration of any bill by
/ this session of the legislature that had
anything to do with the prohibitory law
was had by the house Tuesday after
noon when the Mcmillan bill providing
for penitentiary sentence for persist
ent violators of the law. was passed
| During the last session the most
| stringent prohibitory law ever adopted
4 by any state or commonwealth was
/ passed by the legislature. and it was
4 thought that the prohibitionists were
/ too we'll satisfied with the statute at
this time to NEEDLE further with the
| law. Blu the Mcmillan bill was drafted
/ nd il .i.,aad of the boot laeeer The