The Manchester journal. [volume] (Manchester, Vt.) 1861-current, 1913-02-20
MIR. tlynn's blue Sky Hill BE
comes Law.


The bill introduced inn the House
o Representatives In the early
part of the session by Representa-
tive ]. c. Flynn of Dorset, II Bill
1872. IAN act to provide for the reg
ulation and supervision of Invest
ment Companies, and which has
Just been signed by Governor Flet-
cher, places upon. our statute books
one OF the best and most far-reach-
ing laws that has been enacted by
our Legislature in many years, and
one which will protect not only the
innocent and credulous investor, but
al others as well, from being
swindled out of their money by dis
honest and INSCRIPTIONS persons.
This bill Is what has become fami-
llarly known as the Blue SKY
Law" and is designed TO prevent the
co-called Blue Sky Investment Com
panles from operating or plying
their nefarious trade In this state.
Kansas was the first state in the
Union TO enact similar law and In
correspondence with Mr.. } N.
Dudley, the bank commissioners OF
Kansas. relative to the opera
ton OF the law in that state, MI.
Flynn was advised that since the
law went into effect in March 1911
that il has driven out OF that state
multitude of worthless and dis
honest companies and their agents,
and that 1t has saved to the people
OF that state more money than the
entire expense OF operating their
Sl.te Government during the time
the law has been In effect. II II
impossible to say to what extent the
people Of Vermont are swindled each
year by these fake and wild cat In
vestment companies, but 1t is safe to
say that it Is very considerable
sum, as 1t has been ascertained that
the people of Kansas have lost
from $4,000,000 to $6.000,000 an
nually by the operations OF these
dishonest companies and their
agents in that State In the opin-
ion of those most competent to
Judge, not less than three hundred
millions OF dollars are taken from
the people of this country every
year by the sale Of fake aud wild
cat securities, and virtually every
one OF the swindling concerns that
prey upon ignorance and credulity TO
this staggering extent, is duly in
corporated, and posses charter un-
der the great seal OF some foreign
state, qualifying II to go out and
rob as many suckers as II can find.
With the exception OF Kansas. the
post office department has been the
only effectual barrier between credu-
lous people with money to lose, and
these takers with wild cat stock to
sell II is safe TO say that SO per
cent. OF the mining and lunar oil
companies or whatever they may be,
that go around peddling stock are
rank frauds. And 1t is well for
the people OF Vermont that they
have law that will protect them
from the wiles and operations Of
these dishonest companies, and their
agents. for they cannot In the future
transact any business in Vermont
until after submitting TO strict ex-
animation by our bank commissioner
as 10 the companies financial stand
Ing, and az TO the stocks, bonds, or
other securities which the propose
to sell, and meet with his approval
before th4 can procure license TO
do business In this State. Neither
can they advertise their business In
the newspapers OF Vermont nor by
circulars until they are approved by
the bank commissioner. Not only
companies selling stocks, bonds. etc.
but also companies selling lands
situated outside this State, come un-
der the operation OF the law. II is
well known fact that many peo-
pie have lost much money In this
and other states through the opera
tions OF land sharks. these takers
are experts. they have a regular sys-
TEN, and these companies as q gen
eral rule have prospectus and fin
ancial statement that makes fine
showing One that all legitimate
legitimate companies would be proud
" u they could make an good one.
but when sou compare these state
ments with their books and the facts
and begin TO pull the cover of you
find the Niger IN the woodpile. Blu,
there are not many OF these dishon-
EST fakers who will want 10 take
chances ia violating this Law. as Il
provides severe penalty IN the way
OF both fine and imprisonment
Our State has long provided for
strict supervision OF our banking in
sututaons. our railroads and other
public utilities. but until now IL has
ah@olntely failed 20 provide for any
supervision over the INSCRIPTIONS
and dishonest transactions Of fakers.
thieves and eonfSdenee men In their
dealings with innocent and crsduiou