The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1913-06-24
Officials Not Alarmed at Blue
Sky Lawsuit.
Attorney General Dawson Will
File a Demurrer.
VIOLATES U. S. CONSTITUTION?
Deprives Citizens of Property
Claims Sugar Manager.
sit Imposes Cruel and Unusual
PunishmentS."

Kansas state officials do not attach
great Importance to the suit of Don
A. MounDay in the Shawnee county
district court in which he seeks to have
the blue sky. law declared uncon-
stitutionaE Following a conference to-
day by Attorney General John s. Daw-
son and Bank Commissioner Charles
n. Sawyer, the attorney general an
nounced that he would waive all minor
issues in the suit and would at once
file a general demurrer and ask for
judgment on the pleadings.
The state officials are anxious to
have the suit disposed of at once and
in waving minor issues hope to bring
the case to a speedy conclusion. Judge
Dana will be asked to grant a speedy
hearing.
From an examination of the petit
tion,'' said Attorney General Dawson,
1T is apparent that the case has been
prepared with view of taking it to
the state supreme court and then to
the United States supreme court. The
blue sky law has been copied by several
states and foreign countries, but no
court has ever been called upon to
cOnstrue it or to decide its constitution
atty
Hasten Case Through Courts.
So. if the case is to go to the courts
of last resort for final interprat alton
as to the constitutionality ofthe Kan
sas law, Dawson will endeavor to have
the action hastened by securing a
speedy hearing in the state courts.
Only the question of constitutionality
of the law. however. is to be determin-
ed in the present case
The suit by Don A. MounDay, the
plaintiff. was brought to permit him to
sell real estate contracts in Kansas.
Under the present provisions of the
blue sky law. his operations came un-
der the provisions of the state law and
no permit to 90 business had ever been
secured from the banking department.
MounDay, is seems, has already dis
posed of number of his contracts for
sale of land and investments in the
American Sugar Manufacturing and
Refininfi company, with holdings in
Mexico. Some of these contracts have
matured it seems before the passage
of the amendment to the blue sky law
by the 1913 legislature, which in a
mea sure at least put a ban on Noun
Days business in this state. The pro-
motor did not hold a permit from the
banking department. Neither, does it
seem, has the department ever rejected
his investments under the provisions of
the state law.
1t was when Carl Peterson, in charge !
Of the blue sky department in the bank |!
CATION of MounDay's properties and |
Investments that the plaintiff became !
uneasy and brought suit to contest the !
of the state law. A
number of letters had been received by
he department regarding the Noun
Day land deals and these letters led |
@ an Investigate ton which had not been
completed at the time of the filing of
MounDay's suit
MounDays Claims.
Mr.. MounDay insists that the law
both the Kansas and United !
States constitutions on the following
That it authorizes the taking of
private property for public use with
,ut just compensation.
That it deprives citizens of prop
.rty without due process of law.
That it confers judicial powers on
Executive and administrative officers.
That it is in violation of the bill of
lights of the constitution of the Unit
ID States and the state of Kansas,
which guarantees to all citizens GER
ain inalienable and natural rights
O life, liberty and pursuit of happi-
less
That it violates the constitution of
he state of Kansas which provides
hat no bill shall contain more than
ne subject, which shall be included
n its title.
That it imposes cruel and unusual