Martinsburg herald. [volume] (Martinsburg, W. Va.) 1881-1920, 1913-05-31

penal statute lie insisted that the
language OF the act did not permit
ana individual to sell any stock Of
bond in his possession. whether il
was bank stock. building and loan
stock. trust company stock or what
not. until the state auditor had reeog.
nized him as a proper investment
company. or until the concern which
had issued the stock or bond had
complied with all the requirements Of
the law and had received a certificate
Of health, moral character and peeun-
larry profit from the state auditor.
Many Amusing Phases.
Many amusing phases of the situa-
ton we're presented. one attorney
in attendance said that he had on his
desk, all necessary papers for char
ter for c mpauy, capitalized at
$4,000, which desired to test lease
for oil. According to the statute, the
auditor must be satisfied that this
eompany's stock promises a fair re-
turn on the investment. How can
the auditor be convinced? The pro
moters of this company are willing
to take a chance they are ready to
lose their $4,000 in test. but they
hope. OF course, for better things.
Only the Lord knows whether or not
they viii get back one cent of their
Investment. How viii che auditor
find out?
Another attorney has on hand
the settlement of an estate, and in
the process of this settlement. he
must dispose of some United States
Steel, common, The auditor has not
had occasion to decide Whether or
not Little Steel at its present quota
ton, promises a fair return He
may advise waiting for 81 higher
marketzand steel may slump.
Another attorney who had been
in Charleston. and had had a confer
ence with the auditor stated that it
was the duty of that official to de-
termine many things in the organiza-
tion of new company, and the
promotion of new enterprise. In
case a company is to be formed for
the manufacture of a certain device
or product, the auditor must be sat
isiied that the company is not pay
ing too much for any. patent, copy,
right or Invention. In the case of an
Oil or gas company, he must be as
sured that tire owner Of itlre property
leased is not getting too much stock
for his lease. 1t is up to him. 1t
the promoters have, agreed to give
him $4,000, the auditor may cut this
down to $5.O0O--and the promoters
lose the lease.
''The Seneca Glass Company, for in
stance, is one Of The most firmly es-
tablished going concerns of an indus
trial character in the city. Yet. the
owner of share of stock in that con
Germ, according to the language Of
the statute, if not according to its in
tent, cannot sell it to his neighbor, or
trade it for an automobile or a house
and lot, unit the Seneca company
has told the auditor everything it
knows, and all it hopes for, concern.
ins its own business.
"Ats the meeting, the serious side
of the situation created by the new
law ,deyeloped when the matter of
financing several projects which are
on the verge of contamination, was
brought up. Letters were read from
large banking interests, outside of
the state. in which positive refusal
to act favorably in negotiations which
were all but concluded, was commun-
icated. Several Morgantown indus
trial and transportation projects are
held up for the time pending the de-
cision of the state auditor"