Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1913-05-14
Ban on blue SKY
|. BUSINESS N IOWA
eovEan Nc CLARKE Z. WILL NOT
MAKE usE OF VETO POWER
70 KILL BILL.
REFUSES 70 AaauME
REFUSES TO ASSUME
PowERs OF COURTS
From Passing on constitu.
tionality. Of law a. Passed by Legs.
iature-I.suss statement Explaining
That Bill Has lmperfsetions Which
Are outwsished by ssnefits.
Special to Times-Republican.


Des, Moines.. May A.--The ban goes
on for blue sky" business transac-
tions in Iowa. 4s'r
Governor Clarke will not make use
of his veto pen to decide a question
as to the constitutionality Of a bill
which the representatives of the people
have said is wanted.
Neither will Governor Clarke assume
that as to himself and other servants
Of the public elected. to enforce the
laws there will be any use made OF
the laws to the detriment of legiti-
mate business
When the Thomas "blue sky" bill.
senate file No. I. came to the governor
last month he signed 1t, because he
had recommended similar legislation
and because apparently the bill fairly
fulfilled the desires OF people who In
sist that Iowa has been mulcted out
of too much money bywild schemes OF
corporation promoters in other states.
Then the bill was held up, on. request
of representatives Of national or
ganization of dealers in stocks and Sc
curities. who represented that II 1t
became a law it would seriously In
terfere with their business.
Refuses to Pass on Legality.
A hearing was had and everybody
interested appeared and told their re-
spective stories Nearly all who ap-
peared did so to oppose the bill. The
arguments they might have used on
legislators were expended on the gov
ernor. They explained that they didn't
argue to the legislators because they
had supposed it was all fixed so the
legislature would never get chance to
vote on the bill. Some Of those who
appeared to fight the bill disclosed
before they had finished that they were
the very kind of promoters the bill
was aimed at. for they contended. In
substance. for the right OF the pro-
,noters to palm off on investors any
kind of paper that might be oftered; .
in short that the inalienable right Of
an Iowa citizen to be a sucker IN
finance should not be abridged.
But it finally all sinmered down to
a question as to whether or not the
bill as passed is legal. On this Cover
nor Clarke refuses to pass. He takes
the ground that whether 1t is or not u
is not for him to say. He would not
positively refuse to veto bill because
Of its illegality. but nc would have
to be shown. and there would have &c
be no shadow Of doubt about violation
Of the constitution before he would use
the veto power.
So the signing OF the oill which was
heretofore mentioned is to STAND and
the bill today went to the office OF sec
rotary of state to be incorporated IN
the session laws and code.
Clarke Explains Attitude.
The governor gave out an informal
statement, by request, as to his po-
sitior on the bill as follows:
1T can not say that I am satisfied
with senate file No. l, which is known
as the blue sky law That there Is
need for law that will prevent the
sale of stocks and securities in our
state that are conceived in fraud and
are worthless every one admits. l rec
commended such a law and still say we
ought to have it. Those most earnest
ly opposed to the law as proposed nave
voiced the same sentiment. Every one
admits that hundreds OF thousands OF
dollars are taken out Of the state an
nually by the sale Of stocks that rep
resent absolutely nothing except per-
hans. the Wild get rich quick vision
of some constituencies schemers. Inc
proposed law is aimed at just sucii
business and will reach and prevens
II While 1t does this it is thought II
goes too far in it's effect upon DUST
ness that is perfectly legitimate. Ine
i'll effects of a law are always extreme
1y exaeeerated. The extreme crlt1'
c;sn, that has been placed upon this
Law ia in my judgment, hardly war
ranted.
.eiH is Not Perfect.
at also has been argued to me with
ron siderable plausibility and force, l
must confess, that the bill as passed IS
unconstitutional. Under these cir
cumstances it was quite difficult to de-
termine my duty in the premises. The
hill is not at all in some respects as 1T
seems to me it ought to be. In other
features it is what it ought to be III
reaching the evil aimed at, II, OF
course n is not in contravention of
the constitution.
CAS- to the effects of the law and as
To its validity there is difference of
opinion. Good lawyers do not agree
with me in my view Of 1t. The legisla-
ture passed the bill. That branch OF
the government, therefore. must be
satisfied with it in ali the respects
mentioned.
ut was Chief Justice Waite, Of the
supreme court Of the United States,
who said in the sinking fund cases,
Every possible presumption is in IA
,yor of the validity of a statute and
this continues until the contrary is
shown beyond rational doubt. One
branch of the government can not en-
croach on the domain Of another with
ont danger The safety Of our in