The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1913-01-31
BLUE SKY LAW
Amendments Offered in the
Senate Today.
They Were Prepared by Bank
Commissioner.
Acted TlMn NrAn0g QnEnlTl0N
INTER- TWO YEARS. OPERATION
Provide for Appeal to Utilities
Commission.
Enlarge Scope of Law and In
crease Fees.

bill introduced in the senate today
| by King, of Cowley, at the request of
]. N. Dolley, bank commissioner, en-
bodies the changes found necessary in
the Kansas Blue Sky Law by the
banking department during the two
years it has been in operation.
The most important of these amend
mentS is the provision for an. appeal to
utilities commission from the decision
of the bank commissioner. Under the
present law, the decision of the bank
commissioner is final, except of course,
that they may appeal to the courts.
Under Mr.. Dolley's amendment, if an
applicant is not satisfied with the de-
cision of the bank commissioner, it
may appeal to the public utilities COM
mission, and then to the courts. If
the public utilities commissioner does
not sustain the decision of the bank
commissioner, then it becomes the
duty of the bank commissioner to issue
the permit.
Another amendment provides for the
stock broker or dealer in stocks, bonds
and other securities. Under the law as
now constituted it is practically i'm
possible for the stock broker to do
business in Kansas for the reason that
it was necessary for him to have
separate permit for each stock or bond
issue he handles, and necessary Tor
him to file the information called Tor
DIV the law In cOHHeCllOII Will CdNA
company and for the bank commission
er take considerable time in In
VeStigation of each company
With the proposed amendment
in force, the bank commission
er investigates the stock broker, and
if he finds that he has the reputation
of handling nothing but first class Sc
curities making a careful .invest1ga-
ton them himself before offering them
for sale, then he can grant him
blanket permit, under which he can
proceed with the sale of his stocks
The bank commissioner may prohibit
him from selling any special issues
that he may decide are not first class
Investments, or may revoke his permit
entirely if he decides that such stock
broker is not handling first class Sc
curities.
of the law, making it practically I'M
POSSIBLE for any company to organize
without complying with the law
whereas, with the law in its present
form, it is possible for some compan-
les to evade it's provisions. 1t also
makes it cover the person, firm Or cor
poration selling contracts for bonds
for deed to real estate located OUTSIDE
of the state of Kansas on the Install
ment or monthly payment plan. rms
is regarded as a much needed amend
ment as an enormous amount of money
has been IOSt Dy the AdnSdS pSopiS
through this kind of investments in
Texas, Oklahoma, Mexico and else
where.
Another amendment increases the
fees provided by the law, so that they
will more nearly cover the expense of
the law. The department
has been very materially handicapped
during the past two years for the rea-
son that it could not pay for enough
assistants to carry out the provisions
of the law, in the manner that they
should be.
Mr.. Dolley has also made a complete
redraft of the law, including the
had it printed and is
sending it out to the other states so
that they may have it adopted in that
form. if they choose to do so. Mr.
Dolley's redraft of the bill it is be- |
lieved, will cover all conditions and |
1t may be decided later, |
to enact the redraft, and repeal the |
old law, as the old law needs rewrit- |
ing badly, as it was drawn up before |
it was known just what was needed |
as to legislation of this sort and is |
rather cumbersome in some respects