Martinsburg statesman-democrat. [volume] (Martinsburg, W. Va.) 1906-1921, 1913-05-30

penal statute He insisted that the
language of the act did not permit
an individual to sell any stock or
bond in his possession. whether 1t
was bank stock. building and loan
stock. trust company stock or what
not. until the state auditor had reoog-
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 aud had received a certificate
Of health, moral character and pecuu-
larry profit from the state auditor.
Many Amusing Phases.
Many amusing phases of the situa'
ton were presented. One attorney
in attendance said that he had on his
desk. all necessary papers for char
ter for c mpany, capitalized at
S4,s00. which desired to test a lease
for Oil According 70 the statute. the
auditor must be satisfied that this
company's stock promises fair re-
turn on the Investment. How can
the auditor be convinced? Tie pro
moters of this company are willias
TO take a chanee--they are ready to
lose their $4,000 in a test, but they
hope. of course, for better things,
Only the Lord knows whether or not
they. win get back one cent OF their
Investment. How viii the auditor
find out?
Another attorney has on hand
the settlement of an estate, and in
the process. Of this settlement, he
must dispose qf some United States
Steel, common Thei auditor has not
had occasion to decide whether or
not Little Steel at its present quota
tion,s PROMISES d fair retlhn.s He
may advise waiting for a higher
market and steel may slump.
! Another attorney WHO hap been
in Oh lesion, and had had 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 certbih device
or product, the auditor must be sat
isged that. the company IS not pay
ing too much for any patent, COPY
right or, Invention. In the case .df an
or or gas eohtpahy, ne must Dc as.
sured that the owner OF the property
leased is not getting too much stock
for his lease.a ItHis up to han. II
the promoters have agreed to give
him 100000, the auditor may cut this
down to $4,000 and the promoters
lose the lease.
The Seneca Glass Company for in.
stance, is one Of the most firmly es-
tabiished going cohceIns of an indus
trial character. in the city. Vet the
owner of a share of stock in that con-
cern, according to the language Of
the statute. il not according TO its in
tent cannot sell it to his neighbor, or
trade it for an automobile or a house
and Hot, upti the Seneca company
has told the auditor everything it
knows, and all it hopes for, concern.
in its own business. 1909
"At the meeting, the serious side
of the situation screated by the new
law developed when the matter OF
financing several projects which are
ON the verge of oonsummation, 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"