The daily telegram. [volume] (Clarksburg, W. Va.) 1901-1926, 1913-11-19
Blue sky
Legislation is Brought to the
Attention of National Con-
Servation Congress.

WI t00Oit SOtiS5i SSosz
WASHINGTON. ID. c. Soy 1s-I
State Auditor John Sherman Darst ]
of West Virginia, initiated a discus
lsion today before the National Asso-
ieiation . Of Conservation Commits
Isioners on the so-caIied 'iblue-sky leg
tislation Ansstate Development, sheing
one of .the Speakers before the ass3-
selationsoB the utaHgssp gted subjects
pf sconseT vatioI : 4 byt5
H auditor DaTst declared that blue
sky legislattonrwas ciniming the at
Etention OF. state. legislatures to
Egreater extent. than any other sab
E1ect with the possible exception OF
workmen's compensation laws and
asserted that it was Just as import
ant that the fruits of labor and in
dustry be protected as it is that the
natural resources from which they
Iemanate be conserved.
This legislation has for its OBJ
ject the conservation OF individual
savings by preventing the sale OF
worthless securities, = said Auditor
Darst. Ny accomplishing this, it
protects the producer and preserves
for the channels of legitimate in
lyestment and development, resources
which would otherwise be diverted
into the pockets OF promoters with
livery little, il any, compromising ser
Twice, and which represent waste Just
as truly as does the ruthless, I'M
scientific destruction of our forests.
], Its passage in Kansas about two
/ q nm IT, IN
| dustrial development. Before that
thine many realized the desirabilfty
tof such legislation, but pablo senti-
iment had not been sufficiently arors-
| ed to overcome the opposition Of the
subscriptions professional promoters
who adopting as their motto that
good old legal phrase 'iCaveat
emptor"-Let the buyer beware, and
parading the bcgey paternalisn be-
fore our citizens and legislators, had
no conscience as to methods, so long
as they could defeat such legislation.
The Blue sky law says that the
doctrlne-'Let the buyer beware
must be modified, this means a GER
tain amount OF paternalism. We do
not consider paternalism improper or
opposed to the principles of our
government, when it re2ults in the es.
Enlistment of almshouses in. every
community: Why, then, should moi
.paternallsm go one step further and
remove the necessity for al1nhouses
l1Ly striking at the root by protect
ing the savings that have been 81
carefully hoarded at the cost of un-
.tpld denials and sacrifices against
lFthei dark, lean days of old age?s -
lsi 'Tthas been applied in the field OF
sinsurance; SO that the man who pro-
,9ided in this way for his family may
be asstfedl that the provision is real.
tgThere Is no class of corporations so
closely supervised as Insurance com
panfes, and tfTe-Tesult is that insur-
\ an ee StodAS 'aIsss IL Sc6d4 itenee 1f'ttf4e
peopEe IN e country over. AL fepI-
table insurance companies recognize
the necessity of supervision, al
Though it carries with it a certain
amount of extra work and perhaps
annoyance. The wildcat companies
ami their promoters, however, will
tell you that supervision is most
undesirable, frightful thing.
The blue Sky law is one form or
another has already been adopted in
several States. As an example OF
the demand of this law in West Vir-
ginia, following campaign OF educa-
ton in regard to its objects and pur-
/ poses, no less than eight members
OF the State Legislature had blue
sky bills prepared ready to offer at
our last session, all substantially the
same. s
ut seems that in West Virginia
the promoters We're taken off tNc =
guard; the law was pass before
they knew It, and when they dis
covered the extremity to which
they had been reduced, their walls
reached the heavens. The burden
OF their cry was that West Virginia
was ruined. that all development was
killed that Industry had been given
death blow. Needless to say these
attacks were sansSered: effectually,
and the more-our people understand
the law the better they like 1t.
THE law gives an investor the
fright o,informatton concerning the
security offered and makes it very
dangerous to give, misleading or
false information. Here is where
1.-The blue law does great service. 1t
does not guarantee the investments
(which are licensed under il, Tut 1t
Igives the Investor the means Of