The Barre daily times. (Barre, Vt.) 1897-1959, 1912-02-22
Putting the swindler Out of Business

There are some s25 state banks IN
Kansas, which hold on an average SI25,-
| 100000 in deposits, nearly 800 for every
man, woman and child in the state.
Many OF these millions are savings nc.
counts. These used to be rich picking Tor
the stock swindlers in that sl25.000,900.
but there isn't any more. not since 10.
seph n. Dolley got on the job as bank
commissioner.
Mr.. Dolley is banker himself. D3rn
in Boston in 1861, he has that natural
New England aversion to seeing money
wasted. Much of his early life was
spent at sea with his father, an old-time
skipper. firing OF the sea- he got as far
away from it as possible by going to
Kansas. From clerk in a country store
he advanced to proprietorship and then
into banking and still is interested in
several financial Institutions Incident
ally he has managed several political
campaigns in Kansas, so that he is used
TO hard knocks. and whatever the 81 lcil
swindlers say about him will not hurt
him as much as it might hurt somebody
else, As matter of fact, it doesn't burt
him at ALL He rather enjoys it, because
he always has the last laugh. That last
laugh, as il We're, is known out in Kan
sas as ''the blue sky law To describe
it in a nutshell, the blue sky" law con
fers on the bank commissioner almost
autocratic powers in saying whether any
stock company may offer its stock or
bonds for sale in Kansas.
While Mr.. Dolley actively was Ia the
banking business, several instances came
to his notice where trusting widows had
been beggared by putting all their money
into fake investment schemes. After he
became bank commissioner, he heard of
many others. He began systematic in.
vestgation and he found that the people
of Kansas were being swindled through
the purchase Of immense quantit es OF
stocks and bonds in unreliable and un.
productive concerns and corporations
In every state except Kansas, the only
recourse of the victim is to hire a law
yer and sue for the return of the money
invested But what's the use OF throw
ing good money after badf Besides, the
stock swindler seldom leaves his victim
enough money to hire lawyer. He be-
liepes in getting it all while the getting
is good.
Suing is too much like locking tie sta
BILE door after the horse is stolen The
thing to do is to lock the stable door
first and then stand guard with shot
gun, in other words to put the swindlers
out of business and to keep such close |
watch on the other investment compa-
MES that there wouldn't be any chance |
for them to do any swindling That was
Mr. Dolley's plan. There was no war |
rant in law for what he purposed to do,
but Mr. Dolley has sort of Roose-
veltian knack of finding ways TO do
things that the law does not specifically /
provide for. So, some two years ago,
he established a bureau in his depart
ment for the purpose of advising the /
people of Kansas, without any charge |
to them. as to the value of stocks. bonds
and other forms of securities Offered to
them for investment. Wide publicity was
given the innovation and almost at once
there was noticeable shrinking in the
number of swindling schemes being OPP
,rated in the state. Cautious investors
welcomed the new bureau and made fire.
luent use of it, but the persons who
most needed protection as usually is the
,ase were not reached at ALL TIE only
gay to protect them was to strike at
he root of the evil by driving The swin1
ers out Of the state. Thus was barn the
blue sky law."--From The Blue Sky
.aw," in March Technical World Mag
zine.