The Oskaloosa herald., 1913-05-15
GOVERNOR SIGNS
BLUE sky LAW
PERHAPS NO MEASURE EVER
HAD SUCH A RECORD.
CLARKE NOT WHOLLY SATISFIED
Need Of Such Law to Prevent Sale
Of Worthless Stocks and Seeuri.
ties is Admitted, but This
Bill Goes Far in Effect.

Des Molnes, May 14.--Iowa has
Blue Sky" law. In spite of the de-
ltermined opposition made before the
governor by attorneys for some cor
porations, the chief executive today
sent the bill across the corridor to
the Secretary of State with his Off
cial signature affixed. Perhaps no
measure on lowa's statute books has
a more spectacular record. The bill
was originally introduced by Sena-
tor Thomas and the measure passed
the upper house. 1t was messaged
to the house and was on the calendar
when the sitting committee was APP
pointed with control over all bills.
Speaker Cunningham withheld the
blue Sky" bill from the committee
and on the last day of the session put
it upon the floor for consideration.
1t passed. Immediately opponents
of the measure, who supposed 1t
dead, besieged the governor to keep
him from signing il. He gave all a
careful hearing and after several
weeks consideration he today reach
ed his determination to let the law
stand. Concerning the measure
Governor Clarke said:
Il cannot say that | am satisfied
with Senate File No. /, which is
known as the Blue Sky law That
there is need for law that will pre-
vent the sale of stocks and securities
in our state that are conceived in
fraud and are worthless, every one
admits. ! recommended such a law
and still say We ought to have 1t.
Those most earnestly opposed to the
law as proposed have voiced the
same sentiment. Everyone admits
that hundreds of thousands of dollars
are taken out of the state annually
by the sale of stocks that represent
nothing except, perhaps, the wild
get-rich-quick' vision of some con-
Iscienceless schemers. This ought
to be prevented. The proposed law
lis aimed at Just such business and
will reach and prevent 1t. While 1t
does this, it is thought 1t goes too
far in its effects upon business that
is perfectly legitimate. The i'll eff
fects of a law are always extremely
exaggerated. The extreme criticism
that has been placed upon this law
is, in my judgment. hardly warrant
ed.
1T has also been argued to me with
considerable FEASIBILITY and force,
must confess, that the bill as passed
lis unconstitutional. Under these cir
cumstances il was quite difficult to
determine my duty in the premises.
The bill is not at all in some re-
lspects as it seems to me it ought TO
be. In other features it is what it
ought to be in reaching the evil
aimed at, it, of course, it is not in
Icontravention of the constitution AS
ito the effects of the law and as to its
validity there Is difference of opin-
ion. Good lawyers do not agree with
me in my view of it. The legislature
passed the bill. That branch of the
government, therefore, must be said
ito be satisfied with it in all the re-
spects mentioned. IL was Chief JUS
tice Waite, of the supreme court tofl
the United States who said in the
Sinking Fund cases, Every possible
presumption is in favor of the valid
ity of a statute and this continues
until the contrary is shown beyond
a rational doubt One branch of the
government cannot encrouch on the
domain of another without danger.
The safety OF our listitutions depends
in no small degree on strict obser-
vance of the salutary rule Justice
Chase, of the same court, questioned
whether it had the power to declare
an act of congress void and said:
If the court has such power | am
free to declare that | will never eX-
ercise it but in a very clear case.
That court and our own supreme
court has again and again held that
Legislative enactments will not be
stricken down as unconstitutional
unless they are plainly and palpably
So, or 'beyound a reasonable doubt
or unless the case be clear, decisive
and Unavoidable, and further that
the 'PPerogative should be exercised
with the greatest caution and only
after every reasonable presumption
has been INDUCED in favor of the act.
If under any possible state of facts
the act would be constitutional and
valid, the court is bound to presume
that such condition existed II as
between the legislative and judicial
departments of government this ex-
ltreme caution about encrouchment,
the one upon the other. should exist,
lit certainly should be observed upon
the part vi tue LAtCullNc bcpdil-
ment as we'll and especially so when,
as in this case, lawyers differ upon
THE question of constitutionality II
certainly must be plain that upon
this ground the executive ought not
| to exercise his veto power.
With the particular and peculiar
form of the legislation | am not salts
/ fed. But is II for the executive to
veto legislation because he doesn't
like it, or the form in which II is pre-
scented, when the purpose OF the legis-
lative mind is effected and that pur-
pose is salutary and demanded by
the people? II in the judgment OF
the legislature the law as written
Twas best calculated or adapted TO SCI
cure the end desired Is II for the ex.
lecutive to interpose his veto TO say
THAT Il was not? The law should
have broad and liberal construc-
linn and admioiefratlou ae / heliovp