The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1913-07-01
To Make a Fight on the Blue
Sky Law in Kansas.
WILL SPEND MUCH MONEY
In an Effort to Defeat the Ends
of Legislation.
Former Bank Commissioner
Hopes State. VIII Fight.


Refining company to evade investiga-
ton under the Kansas blue sky law,
is the result of an organized fight by
investment companies in all parts of
the country, is the opinion of J. N.
Dolley. former state bank commission
er. Large sums of money will be spent
to defeat the law, Dolley believes, and
the contest regarding the constitution
ality of the law will probably be just
as bitter as was the fight over the bank
guaranty law.
Dolley does not believe that the sugar
refining company alone is making the
fight. He declares that this company
alone was willing to bear the brunt
of the fight and come into the open.
but that many similar corporations
have provided Jackpot with which to
employ the best legal talent and to
fight the case in the courts. The
former bank commissioner, however,
is firm in the belief that the Kansas
law, which has been copied in many
other states and several foreign coun-
tries, will be upheld and declared con-
stitutional.
In discussion today of the fight on
the law, Dolley said:
Doney's Statement.
'T am not surprised that the blue sky
law has at last been attacked in the
courts. and attacked in Kansas, the
birth place of the law. Up until this
time no company has ever dared to go
into the courts with this kind of
case owing to the belief of the general
public which is more or less justified,
that any company which has good
proposition and was being honestly and
legitimately handled need have no fear
of nor any hesitancy in complying with
the law, and that if it was a legitimate
company, it would comply with the law
without hesitating or complaining, and
thereby prove to one and all its legiti-
macy. But they have at last found
company which was willing to bear the
brunt OF the f1ght and permit its name
to be used in a. test suit in the courts.
I understand that an appeal has been
sent out all over the country to a large
number of companies and individuals
who it was thought might be inter
ested, calling for money to make up a
large Jackpot for the sole purpose of
having the blue sky law declared un-
constitutional, and that this appeal is
bringing about the desired results in so
far as securing the funds is concerned
MANY states during the past year
years have had this law before their
legislatures and a. large number or
them have passed it. A strong fight
was put up in each state, as there was
in Kansas, by an organized lobby
lures. The people of the various states
demanded the law so strongly that
these lobbies failed to kill it before
the legislatures in most cases. Failing
in this. they have now combined their
forces in last endeavor to destroy the
law in the courts, following the usual
course of attern pting to have the law
declared unconstitutional and along
about the same lines on which the
guaranty law was attacked with which
frr,
Confidence In the Law.
"I do not believe there is any ques-
ton that the law will be upheld by
the courts If the suit is properly de-
Tended. I trust that Governor
Hodges, Attorney General Dawson,
retary of state Sessions will do their
duty and see that the law is ably de-
Tended in view of the inestimable good
that it has been and is doing fer the
people of this state.
But I believe that they will have
one of the same kind of legal fights
that we had for the guaranty law and
that in order to successfully cope with
the array of legal talent that will be
furnished by the enemies of the blue
sky Jaw from all over this broad coun-
try they will have to give it the same
undivided attention and the same Wig
orous application of legal talent that
was used in the fight for the guaranty
law, winch dlOHe Lndue NlCIoiS Po9
sible.
Is an Organized Fight.
eff any one has an idea that this
suit is being brought alone by the |
American Sugar Refining company, In
nv Judgment, they are badly fooled. |
1 believe it is the result of an organ |
lied campaign, not only in Kansas but
all over the United States, which has
been going on ever since the blue sky
law was first suggested. The law in
terferes with the business of d certain |
class of unscrupu1ouss companies and
individuals and they have gone into
the courts as a last resort. 1t is life
or death with them and they are and
will make a desperate fight.
1.-The friends of the law should not
let tie matter go by default, but
should see to it that this law is up
held in the courts and thus once and
forever put the blue sky merchant and
fake stock sellers out of business"
H~HEAAE4NE